Since March of 2022, hiring into the U.S. life sciences industry – including jobs in biotechnology R&D as well as pharmaceutical/medical device manufacturing – has ground almost to a halt. A CBRE report finds a minuscule 0.2% growth in life sciences employment since June of 2022, which has added undue stress to employers on top of a tumultuous economic environment, is the result of a historically low unemployment rate and decreases in the total working population headed into applicable fields.  This is a stark difference between the 15.8% growth in life sciences labor between 2020 and 2022, as companies that are hiring, and have not been stalled by the interest-rate hike, find themselves vying for talent in the same small pool. 

Without relief on rates on the horizon, this stifled labor growth is expected to continue through 2024.  As a result, the top MedTech markets in the US are going to offer better talent opportunities due to higher concentrations of talent, but the price to secure this talent extends far beyond employee compensation.

Based on 2023 US Census data, there are nine (9) markets in the US with over 50,000 people employed in MedTech/Life Sciences manufacturing and R&D, however, these are also some of the most expensive real estate markets, with Los Angeles, Chicago, New York, and Boston MSAs topping the list. Even the Minneapolis MSA, a staple for MedTech and life sciences labor and a less obviously expensive market, boasts a cost of living 20% above the national average. All of this is to say that MedTech and life science companies are in a pay-to-play environment when it comes to operating in these markets between employee compensation, real estate costs, and operating expenses, not to mention the constant need to continuously compete to retain existing talent year after year. 

This is where our team comes in. Using US Census labor data, as well as market rental rates, cost of living, and wage data, CBRE’s MedTech Advisory Group has built an AI mapping tool that can guide companies towards comparatively “untapped” markets, where there are over 30,000 people employed in MedTech and life sciences manufacturing and R&D but labor rates are less than the national average and rental rates are on average 21% less, saving occupiers in operating costs across the board.  Contact us to learn more about how our team uses a company’s operational and labor needs to drive strong real estate outcomes in unprecedented labor and industrial markets.