Writer: Andrea Teran
2 min read April 2024 — Greater Boston has always been synonymous with biotech excellence, home to a dense network of research institutions and cutting-edge companies supported by world-renowned institutions and capital magnets such as MIT and Harvard. However, the region now faces growing competition.
Boston and the Commonwealth of Massachusetts is contending with areas such as Raleigh-Durham, North Carolina where industrial electric rates are less than half compared to Massachusetts, as reported by the U.S. Energy Information Administration. Additionally, construction worker wages in North Carolina average $33 per hour, compared to $47 per hour in Massachusetts, according to data from the U.S. Bureau of Labor Statistics. But Greater Boston’s biotech presence is still unquestioned.
“The Neponset River region is witnessing notable growth, particularly in the medical office space and biotech sectors. With companies like Moderna establishing a presence here, the region has garnered attention as a favorable business environment,” Tom O’Rourke, president and CEO of the Neponset River Regional Chamber, told Invest:. “The influx of jobs and tax revenue from such companies not only benefits the area directly but also serves as a beacon for other businesses considering relocation.”
Despite the challenges, Boston continues to attract significant venture capital investment, particularly in biotech. In March 2024 alone, Boston’s healthtech and biotech companies secured $570.2 million in funding, aimed at advancing fields such as precision cancer treatments and AI-powered healthcare solutions. Companies like Sionna Therapeutics and Clasp Therapeutics were among the top recipients, indicating high investor confidence in Boston’s capacity to lead in high-stakes, innovative medical technologies.
However, the biotech sector in Boston has not been without its setbacks. At least 330 employees at 14 companies lost their jobs in the first quarter of 2024 alone, according to the Boston Business Journal. Companies like Ikena Oncology, C4 Therapeutics, and Moderna have all reduced their headcount, reflecting a cautious recalibration of resources amidst a fast-evolving market.
In response to workforce challenges, initiatives such as Bioversity, launched by MassBio, aim to enhance local talent readiness. This program offers free training and stipends, focusing on diversifying the biotech workforce and equipping new entrants with essential skills, signaling a proactive approach to maintaining Boston’s competitive edge.
While Boston currently employs twice as many individuals in biomanufacturing as Raleigh, JLL forecasts a market leadership transition, with Raleigh poised to become the new top biomanufacturing hub in the nation. Key players like King Street Properties and Fujifilm are seizing opportunities in North Carolina, developing expansive campuses such as the Pathway Triangle, encompassing over 1 million square feet. Additionally, Fujifilm Diosynth in Holly Springs is undergoing a campus expansion to 1.3 million square feet, drawn by lower operational costs and a rich talent pool from esteemed local universities, including Duke and UNC-Chapel Hill.
“We are always poised and ready for growth when it comes to life sciences and biotech, especially as Massachusetts is a big driver for that industry,” Meredith Harris, executive director of the Marlborough Economic Development Corporation, told Invest:.
For more information, please visit:
