Engineering Inc. - Spring 2020 - 13

Employment Change in Recessions
4.0%

2.5%

2.5%
1.0%
-0.5%

0.3%
-0.8%

-2.0%

-0.3%
-1.7%

-1.2%
-2.7%

-3.5%
-5.0%

-5.0%
-6.0%

-6.5%
1990-1991

Total

2001

Technology

2007-2009

Life Sciences

Source: U.S. Bureau of Labor Statistics, Cushman & Wakefield

Change in Recessions). Unlike employees in other
market sectors, employees in health care and life sciences often cannot telework due to the nature of their
jobs, so growth in demand for new facilities correlates
strongly to the growth in employment.
AN AGING DEMOGRAPHIC
SUPPORTS CONTINUED GROWTH

The U.S. Census Bureau predicts that by 2030, the
median age in the U.S. will top 40 for the first time
ever. With people 65 and older visiting doctors 2.5
times more than those age 25 to 44, according to
Marcus & Millichap Research Services, the need for
hospitals will continue to grow.
During the COVID-19 pandemic, older populations can be especially at risk and in need of long-term
treatment. As a result, certain geographic areas are
likely to have continued growth in the health care
sector.
According to the U.S. Census Bureau, the top five
metropolitan areas expected to have the strongest
growth for those 65 in the coming years are:
1. Austin, Texas
2. Raleigh, North Carolina
3. Dallas
4. Houston
5. Charlotte, North Carolina
10010
00100010001
00011101000110010
0010001000100011101
000110010001000100010
00111010001100100010001
0001000111010001100100
0100010001000111010001
1001000100010001000
11101000110010001
00010001000

Commercial &
Residential Real Estate

Intermodal & Logistics

Commercial &
Residential Real Estate

Intermodal &
Logistics

Health Care & Energy & Utilities
Economic
Science+Technology
Outlook

Rank

University Medical Schools

2018 NIH Funding

University of California, San Francisco

$577.72 M

Johns Hopkins University (MD)

$469.64 M

Stanford University (CA)

$456.27 M

Washington University (MO)

$449.34 M

University of Pennsylvania

$425.23 M

University of Pittsburgh (PA)

$415.67 M

Yale University (CT)

$407.46 M

Columbia University (NY)

$407.42 M

Duke University (NC)

$384.59 M

University of Michigan, Ann Arbor

$372.60 M

Rank

Biopharma Company (Headquarters)

2018 R&D Spend

Roche (Basel, Switzerland)

$9.803 B

Johnson & Johnson
(New Brunswick, NJ)

$8.446 B

Novartis (Basel, Switzerland)

$8.154 B

Pfizer (New York, NY)

$7.962 B

Merck & Co. (Kenilworth, NJ)

$7.908 B

Sanofi (Paris, France)

$6.227 B

AbbVie (North Chicago, IL)

$5.093 B

GlaxoSmithKline (Brentford, England)

$4.987 B

Gilead Sciences (Foster City, CA)

$3.897 B

Amgen (Thousand Oaks, CA)

$3.657 B
Source: Pharmaceutical Executive Magazine

TRACKING THE FIRMS AND INSTITUTIONS INVESTING IN R&D

To better understand which health care institutions and biopharma firms
may need upgraded or expanded laboratory, medical, and administrative
spaces, it's useful to track which universities and hospitals are getting grant
funding and what firms are investing in R&D.
The first table, "University Medical Schools," shows the top 10
universities whose medical schools received National Institutes of Health
funding in 2018. The second table, "Biopharma Company," lists the top
10 biopharma companies that invested in R&D (which is not the 10
largest by sales or revenue). Institutions and companies investing in
their futures are also investing in their facilities. ■

Health Care &
Science+Technology

Annual Economic Outlook

Energy &
Utilities

Public-Private
Public-Private
Partnerships (P3s)
Partnerships (P3s)

The Private Side is a regular department of Engineering Inc.,
focusing on the private-sector markets listed to the left, and information
and insights on public-private partnerships and economic data relevant
to the industry. For more on these topics, subscribe to ACEC's bimonthly
Private Industry Briefs: https://programs.acec.org/industrybrief/.

Erin McLaughlin is ACEC's vice president of private market resources. She can be
reached at emclaughlin@acec.org.

SPRING 2020

ENGINEERING INC.

https://programs.acec.org/industrybrief/

Engineering Inc. - Spring 2020

Table of Contents for the Digital Edition of Engineering Inc. - Spring 2020