Reshoring to Puerto Rico:
A Manufacturing Paradise

Made in Puerto Rico is Made in the USA

As a U.S. territory with strong connections to the mainland, Puerto Rico is an ideal solution for reshoring advanced manufacturing operations. The island enjoys the stability and the legal and security protections of the mainland U.S., while maintaining its unique cultural identity.
The island’s assets help companies increase the resilience of their supply chains, reduce costs and improve their bottom line, all while still operating within the U.S. market.

In Intellectual Property Protection

In Latin America

$57.9

Billion

In Total Exports

(2021)

Fixed Income Tax Rate

On Eligible Income
With no U.S. Federal Tax

Reshoring:
The Key to a Stable
Supply-Chain

The pandemic and the ongoing geopolitical unrest exposed the vulnerability of critical supply chains. This has resulted in a renewed interest in reshoring manufacturing back to U.S. soil. Companies have found that in Puerto Rico they can optimize production by keeping their manufacturing facilities regional in scope and increasing logistical flexibility, all while making their operations more resilient and cost-effective.

Securing your
Supply-Chain

Puerto Rico offers the same level of operational security, political stability and support, and protections one would expect from the United States. This includes the U.S. dollar; U.S. federal law; and a U.S. banking framework that also features the credibility of the Federal Deposit Insurance Corporation (FDIC).
A regulatory environment governed by the U.S. Food & Drug Administration, the U.S. Department of Agriculture, and other trustworthy entities.
#1 in intellectual property and patent protection in Latin America, enforced by U.S. laws.
Made in Puerto Rico is made in the USA, and all the credibility that comes with that.

Access to Global Markets

Domestic access to the U.S.; no customs for U.S. citizens and companies.
International air transshipment hubs, major seaports and 11 total airports, including the busiest seaport and airport in the Caribbean, are primed for exporting and importing.
These locations are serviced by logistics companies capable of handling, storing and shipping time- and temperature-sensitive materials.

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World-Class Talent

A highly skilled bicultural and bilingual workforce; the manufacturing sector supports over 94,000 jobs.
#6 in the world in availability of scientists and engineers.
The highest concentration of both pharmaceutical manufacturing and medical device experts in the U.S.
The highest proportion of STEM degrees in the U.S.
The University of Puerto Rico in Mayagüez, a tech education leader:
- #1 in graduating Hispanic engineers & chemical engineers
- #2 in graduating women engineer
- 11th in granting chemical engineering Master’s degrees
- 14th in computer engineering degrees awarded
- 15th among the top 20 chemical engineering schools in the U.S.

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Future-Proof Infrastructure & Connectivity

5G and 0G technologies support IoT integration, automation, machine learning, artificial intelligence and more efficiency in companies’ local operations.
Post-Hurricane Maria federal funds (over $77B) are being invested to accelerate blockchain, broadband, Smart Cities/IoT and high-performance computing innovations.
Over $10.5B in federal funds have been designated for energy grid enhancements.

In Good Company

8 of the 15 top-selling pharmaceutical products in the world are made in Puerto Rico.
12 of the world’s 20 top grossing pharmaceutical companies have operations here.
7 of the 10 top grossing medical device companies are present on the island.
There are currently 46 FDA-approved pharmaceutical plants and 70+ medical device manufacturing plants on the island, including:
- Johnson & Johnson, Pfizer, Novartis, Merck & Co., AbbVie, Abbot, Eli Lilly, Boehringer Ingelheim, Amgen, Bristol-Myers Squibb, Medtronic, Thermo Fisher Scientific, GE Healthcare, Fresenius Kabi, Cardinal Health, Sartorius, Terumo, and Stryker.
You also have the support of robust professional networks and sector-specific clusters in bioscience, manufacturing, logistics, tech, I&E, and others.

Foreign-Trade Zones

There are three Foreign-Trade Zones on the island: the Puerto Rico Foreign Trade Zone is the largest non-contiguous FTZ in the US, with 4,554 acres, 714 buildings and 19.5 million square feet located all around the island.
The benefits of operating under the FTZ program in Puerto Rico are unique:
- Deferred U.S. duty payment
- Deferred Puerto Rico excise tax payments
- No duties on returned foreign origin products
- No duty payment on spare parts until used
Most of the island is a qualified federal Opportunity Zone, a program that provides preferential tax treatment for investments in low-income, distressed communities.