The high tech and biotechnology trends are good news for European engineering companies.This is reflected among other things in the order books of the engineering company NNE Pharmaplan. However, Stefan Berg, General Manager for NNE Pharmaplan Germany and Switzerland as well as Corporate Vice President for the region Central Europe, explains that growth is not the company’s first priority. NNE Pharmaplan’s focus is to support pharmaceutical companies with high-quality and future-proof solutions in pharma engineering.
PROCESS: Mr. Berg, the European pharma industry engaged in research are facing more and more competition from the "Pharmerging markets" like Brazil, China and India. EFPIA estimates for Europe in 2013 a growth of 1%. Is it still worthwhile for engineering and consulting companies with a focus on the pharma industry to be active in the European market?
Berg: Yes, of course. Especially the pharmaceutical companies engaged in research are rediscovering the stable and safe locations in Europe and the US and are investing there in R&D as well as launch facilities. This is also reflected in our order books. Again and again the pharmaceutical manufacturers relocate their production back to Europe. Certainly, this trend is also supported by the quality problems in the emerging markets in the recent past.
PROCESS: Where is your market share at present?
Berg: Our market share for our region Central Europe comprising offices in Germany, Switzerland, France and Belgium is estimated to be almost in the two-digit percent range. The pharma engineering market in these countries is not only shared amongst middle-sized or large engineering companies, but also amongst many small engineering offices.
PROCESS: To what extent is this share increasable?
Berg: The compound annual growth rate of the Western European life science engineering market is expected to be around 5.0 percent between 2015 and 2020 (source World Report "Pharma Plant Markets 2020", Intechno Consulting). Based on our present market share there is a huge potential. But growth is not our first priority. We concentrate on supporting our customers with high-quality and future-proof solutions in pharma engineering. Especially in the present situation within the pharma industry there is a high need for flexibility, agility and future-proof solutions which are in more demand than ever. Smaller product volumes and time to market requirements are only some of the issues which require a higher flexibility.
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