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“The most important thing is transforming our minds, for a new way of thinking, a new outlook: should we strive to develop a new inner world?” – Procurement Industry Analytics Report

Our latest industry analytics report features analysis on the procurement sector within the life sciences industry.

Clinical Professionals Group CEO, Yvette Cleland comments:

“As control of spend becomes more prominent in biopharmaceutical management’s message to the investor community, attention has been focused heavily again to the finance portfolio and most prominently through sourcing and procurement. Sourcing which has long focused on supplier selection and management is more essential than ever, particularly in order to address the vastly more complex and now better-known risks of the global manufacturing supply chains.

Brexit for several years and now COVID-19 have thrown many lessons at us, especially in the last few months as a perfect storm of dilemmas and new learns have collided.

Our monthly industry reports look at different specialist sectors of life sciences and gauge key trends through analysing “live vacancies” and therefore hiring patterns to take a real ti me view of the Life Science sector.
Across the life sciences last year (2019) we saw a circa 2.5% growth across the whole of Europe in total vacancies in industry. Procurement however saw an above trend spike of over 7% growth in total vacancies over the same period. Germany currently holds the largest cluster of procurement roles at 17% of Europe’s total. However, where things start to look interesting is in 2020 to date, particularly in the last few months as Germany has seen quite an explosion in hiring at a startling 23% increase in procurement jobs and hiring.

Something that has been speculated over and stated in recent months on the back drop of COVID-19 and how supply chains were compromised, is that China had 70% of the API market and this in tandem with the COVID-19 outbreak had revived fears over acute drug shortages in Europe. Sparking calls to repatriate the production of pharmaceutical ingredients from China. The facts look to be different and China has circa 13%
and India 18% of the market with the EU having around 26% of API manufacturing. So, the picture being marketed was not totally accurate in the eye of the Covid19 storm. There is however a growing tone around rebuilding capacity in the European market and that would, if even possible, take years. Given Europe’s overreliance on the “factory of the world” in China, there is little doubt that the safe, sustainable supply of essential medicines is now in jeopardy. Have Germany been quicker off the mark in attempting to address this? Their rapid rise in the Procurement professionals, amongst other areas, could indicate this to be the case.

I guess to inform further thought process during Covid19, France’s finance minister Bruno Lemaire, stated that this new episode is a “game changer”. In the wake of the epidemic, he called for a rethink of globalization, describing Europe’s over-reliance on China as “irresponsible and unreasonable”. This was an extraordinary statement from a formerly enthusiastic advocate of free and unbridled competition, but I guess the world has learned many lessons in the last six months, with many more to come.”

If you would like to view the full report and other industry analytics reports we have available please visit here

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