Most of America’s biomanufacturers are in the South, Midwest and Mid-Atlantic. But Western Massachusetts has many of the right ingredients to lure companies, too. iStock illustration
Massachusetts has long been the bellwether for the life science industry, where academic discovery, risk capital, and commercial real estate have worked in synergy.
Now, in the wake of the biotech boom in the years immediately following the COVID-19 pandemic, that leadership is being tested by a rare convergence: a lab real estate overhang and a potential stoppage of federal research support.
Last month, MassBio released its annual industry report, which found that venture capital investment in Massachusetts based biotechnology companies dropped more than 17 percent in the first half of 2025 compared to the same period in 2024 – the lowest level since 2017. Simultaneously, the state is expected to receive $463 million less in National Institutes of Health funding this year than it did in 2024.
But while the amount of lab space has doubled in Greater Boston in the past five years, many lab properties sit vacant as investments have slowed. With lab vacancies aplenty and research funds shrinking, the commonwealth faces a defining moment. How can Massachusetts maintain its status as a leader in life science, despite these headwinds?
Amid a push to bring manufacturing back to the United States, specifically biomanufacturing, there is opportunity to bring these facilities to the commonwealth. With the federal government continuing to explore increased regulations around biotech and pharmaceuticals from other countries, many companies are opting to move manufacturing back to the states.
East-West Rail a Catalyst
The vast majority of those facilities are in the Southeast, Mid-Atlantic and the Midwest.
Massachusetts, while generally a leader in advanced industries and technologies, faces constraints that, at face value, might hinder its ability to support these companies as they scale, including land availability, energy costs and funding constraints.
However, to continue to lead in life sciences, we need to explore and prioritize this opportunity for growth.
While the state’s biotech industry has long been centered around Kendall Square, expanding over time to submarkets of Greater Boston, there’s by and large a lack of available land in Eastern Massachusetts to build large-scale manufacturing facilities.
If one travels to Western Massachusetts, however, they will find much more available land to support these large projects.
The East-West Rail project, which recently won funding to progress to a new milestone, will streamline access to these parts of the state from Boston and further unlock its potential for companies seeking more space.
Lowering Energy Cost Is Vital
Beyond space, Massachusetts must also navigate the reality of its energy prices, some of the highest in the country.
Manufacturing and logistics centers utilize a great deal of energy, making it more cost effective to explore other states.
One way to circumvent high energy costs is to explore alternative energy forms, such as geothermal energy. Harvested from the earth’s crust, geothermal energy can be used for direct heating, geothermal cooling, and generating electricity by harvesting hot water and steam from underground reservoirs.
Marna Wessels
These geothermal wells can be installed under the building, and, while a substantial upfront cost, result in cost savings in the long run, especially for industrial buildings with a large energy footprint.
Another factor to consider is the workforce. The MassBio industry snapshot found that while life science jobs climbed just 0.1 percent, biomanufacturing jobs in the state dropped 1.5 percent, while research and development jobs fell 1.7 percent.
Through initiatives like Bioversity, MassBioEd, and the Life Science Workforce Development Initiative, both the public and private sectors can continue to support the growth of the industry.
Gov. Maura Healey also proposed her Discovery, Research and Innovation for a Vibrant Economy (DRIVE) Initiative this summer, filing legislation to support $400 million in state funding for the innovation economy.
For Massachusetts to continue to stay above the curve in the life sciences industry, we need to innovate to adapt to the current market conditions.
At a time where lab space is overbuilt, and funding for research and development is challenging to come by, by meeting the industry where it is Massachusetts can continue to lead the life sciences industry.
Marna Wessels is a senior project executive at construction management firm Gilbane, overseeing life sciences, healthcare and advanced manufacturing projects in Massachusetts and Northern New England.
