Why has recruiting in the Pharmaceutical sector slowed?
Many people may ask is the slow down in recruitment within the Pharmaceutical sector in Ireland due to the recession. I am not referring to the Medical Device sector where in the main recruitment activities have remained fairly stable however there is a definite slow down in recruitment within the Pharmaceutical Industry and in particular at management and senior technical level.
Although the recession has affected almost all aspect of business the Pharmaceutical industry faces a more fundamental restructuring. Spending in Research & Development by the top Pharmaceutical Corporations has not being particularly productive in recent years. Allied to this there are a number of products, where Irish subsidiaries are major producers, whose patents are due to expire over the next number of years. Traditional manufactured drugs were derived from chemical compounds and addressed relatively broad therapeutic applications. However the newer biologics based medication are more targeted to smaller groups and thus a decline in the block buster drugs has meant that top Pharmaceutical companies can no longer rely on the massive profits these drugs have generated.
In the past the top Pharmaceutical companies’ main focus was on R&D and Marketing of proprietary medication having little regard to what happened in manufacturing or logistics. Today these companies are more focused on costs across the entire supply chain from R&D through Manufacturing and Sales. The recession, in this writer’s opinion, is simply an easy way for these organisations to implement restructuring plans which were already afoot before the current economic crisis. In 2008 exports of Pharmaceutical Products increased and there is no indication that 2009 will be any different.
The Pharmaceutical manufacturing sector in comparison to other manufacturing sectors such as the automotive, consumer goods and computer is probably 10 to 15 years behind when it comes to efficiency across the entire supply chain( R&D ~ Manufacturing ~ Distribution). They are now addressing this gap and are implement many of the principles of lean manufacturing. To compound matters with Merck buying Schering Plough & Wyeth being take over by Pfizer, between theses companies there circa 10 separate manufacturing sites in Ireland most of which have implement formal or informal hire freezes until the mergers have been fully processed.
The short term trends indicate that recruitment will remain sluggish in this sector and the future will remain unclear until we seen the outcome of these mergers. Overall we are still moving in the right direction as our cost base is beginning to fall and factory facilities in Ireland are improving efficiencies through a combination of better production systems and automation. Converging technologies (Pharmaceutical ~ Medical Device ~ Electronics) will open new opportunities along with the possibility of attracting new biopharmaceutical start-up operations. The hire freeze mentality will lift as the global economy emerges from recession and as the overall demand for medicinal products continues to rise due to population growth and increased wealth in emerging economies. Our positive reputation when it comes to regulatory compliance, low corporation taxation and easy of doing business have not changed. There is a steady evolution of Industry/Academia cooperation along with an increase in the number emerging Campus & R&D companies receiving government and private sector backing. Thus the future does look positive for this sector which should continue to offer good employment and career prospects.







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