Johnson & Johnson (JNJ.N) announced plans to invest more than $55 billion in the construction of four new manufacturing plants in the U.S. over the next four years. The move comes as pharmaceutical companies brace for potential 25% tariffs on drug imports proposed by the Trump administration, driving a shift toward domestic production.
J&J officially broke ground on one of the new plants in Wilson, North Carolina, on Friday but has not disclosed the locations of the remaining three facilities. The investment represents a 25% increase in manufacturing spending compared to the past four years.
Reshoring Amid Tariff Concerns
The announcement follows a broader trend in the pharmaceutical industry. Last month, Eli Lilly (LLY.N) pledged to invest at least $27 billion in new U.S. facilities over the next five years, as drugmakers navigate the potential impact of tariffs.
Companies with significant manufacturing operations outside the U.S., including J&J, Pfizer (PFE.N), and other firms with large production hubs in Ireland, could be particularly vulnerable to new import duties. Former President Donald Trump, who has long pushed for increased domestic manufacturing, has intensified pressure on drugmakers to relocate production to the U.S.
J&J, the world’s largest pharmaceutical company by revenue, stated that it already operates more manufacturing facilities in the U.S. than in any other country. Alongside new plant construction, the company also plans to expand existing U.S. sites and enhance its research and development infrastructure.
Expansion Beyond Pharma
The push for domestic manufacturing isn’t limited to pharmaceuticals. Apple (AAPL.O) recently announced a $500 billion investment in U.S. operations over the next four years, although analysts note that some of this includes existing commitments.
Impact on Jobs and Innovation
J&J’s Wilson, North Carolina facility, which represents an investment of over $2 billion, is expected to create 5,000 jobs during construction and more than 500 permanent positions across the state. The site will focus on producing medicines for cancer, immune-mediated diseases, and neurological disorders, reinforcing J&J’s commitment to advancing critical treatments.
With significant investments from major corporations, the U.S. is witnessing a manufacturing resurgence driven by policy shifts and evolving economic priorities.