Since we opened in 2008, Compass’ mission has been to support and drive the life science and biotech industries forward using our network of seasoned professionals and consultants. The industry is unique, in that its trends fluctuate differently than other fields such as finance or tech. During the pandemic, we’ve seen the industries we serve accelerate, and we want to share some of that insight with you, and how Compass can support companies through unexpected changes.
Industry Growth
According to the U.S. Bureau of Labor Statistics, the life sciences sector’s headcount has increased by 5.3% in January 2022 from January 2021. Compared to the overall national job growth, which is 4.7%, life sciences has exceeded that number. If you dive deeper into subsectors of life sciences, biotech research & development is seeing an 11.5% increase. With this type of increase in job growth, it’s natural to anticipate a jump in real estate. Life science hotspots like Boston-Cambridge and San Diego have shown similar upward trends.
The pandemic is a great example of how life sciences has truly accelerated in growth and overall attention. CBRE U.S. Life Sciences Leader Matt Gardner says that when faced with global challenges, society holds life sciences in high regard when it comes to global innovation.
Another reason that the life science industry is getting so much attention is that the U.S. alone has produced an annual increase of roughly 5,000 biological and biomedical engineering graduates from 2015 to 2020, which exceeds the annual increase of jobs in those fields of study. This means that with the amount of new talent that is produced, the industry can easily sustain its job growth through the coming years.
Revenue Growth & Future Challenges
While the industry itself is growing, there are still areas that need attention if the industry is going to succeed. According to a report from Big 4 consulting firm Ernst & Young (EY), the industry now faces challenges with valuations and access to capital. The exponential growth in revenue recorded its highest growth in 2021, where public company revenues surged 35%, from $160.2 billion to $216.7 billion, largely due to the need for COVID-19 vaccinations and antivirals. However, valuation prices began dropping due to investor interest beginning 2021 and is still dropping within the first half of 2022.
In addition to the concern in lower valuations pricing, the geopolitical environment is still in flux: inflation, supply chain disruption, talent competition, demonstrating commitment to environmental, social and governance issues, to even patient access and affordability to clinical trial diversity.
How does Compass fit into all this?
In areas where biotech companies are having issues scaling up their businesses or bringing their products to market, Compass works directly with these companies and identifies gaps where talent solutions are needed. We work with small-to-medium-sized businesses that are looking to scale up their teams within areas such as commercial, medical affairs, patient access, and research & development. Our vast network of life science experts and consultants allows us to respond quickly to companies’ needs, while advising on their hiring processes and connecting professionals with their next opportunities.
Whether you’re looking for a new job, or you’re looking to build your team, Compass is your network into the biotech and life science worlds. Connect with us today for more information.