Efforts toward reshoring — that is, bringing manufacturing back to the United States — has been a national policy priority for a decade now, and supply chain disruptions during the pandemic gave these efforts a push. By now, after years of slight gains, reshoring is a strong focus in American manufacturing, and Puerto Rico wants to get in on the trend.
Executive Order 12-2025
On March 18, in a meeting with private sector leaders and government representatives, Governor Jenniffer Gonzalez-Colon signed Executive Order 2025-012, to encourage manufacturers to bring their factories to Puerto Rico. “Made in Puerto Rico is Made in the USA!” is the slogan associated with the effort.
“Puerto Rico is ready to welcome and expand multinational companies and continue consolidating its position as a key player in the national supply chain thanks to our established manufacturing infrastructure, highly trained workforce, strategic location, and a more competitive incentive ecosystem for investment and industrial growth,” said the governor.
The order establishes a task force, under the direction of Sebastián Negrón-Reichard, of the Puerto Rico Department of Economic Development and Commerce (DDEC). The task force includes representatives of DDEC, Invest Puerto Rico, the Puerto Rico Industrial Development Company (PRIDCO), the Puerto Rico Federal Affairs Administration (PRFAA), the Puerto Rico Science, Technology & Research Trust, and other public and private stakeholders.
Negrón-Reichard said, ““Puerto Rico is already a leader in sectors that include biopharmaceuticals and medical devices. Through this Executive Order, we are better positioning ourselves to attract even more investment at a critical time for reshoring of U.S. manufacturing. We are ready to welcome more companies and facilitate their growth on the Island.”
The order provides for several initiatives:
- One-Stop Investment Window, to provide companies with a centralized point of contact to streamline processes.
- Fast-Track Permitting Process, to prioritize the expedited approval of strategic projects.
- Reshoring Workforce Training Fund, to ensure that workers in Puerto Rico are prepared for high-demand jobs.
- Puerto Rico Investment and Reshoring Summit, an event aimed to attract international investors and showcase the island’s competitive advantages.
Puerto Rico has been known for the convoluted nature of its business regulations, which can discourage companies from establishing businesses on the Island. The first two items on the list are designed to ameliorate this situation.
On the other hand, the fact that Puerto Rico has a large population of workers with experience in manufacturing has been a plus in attracting manufacturers. The training fund promises to support this advantage.
Puerto Rico also has a strong track record with events like the Investment and Reshoring Summit, and many venues that can participate.
In sum, the planned initiatives are designed to play to the Island’s strengths and reduce its weaknesses.
National security
Gonzalez-Colon also reminded listeners that Puerto Rico’s position in the supply chain for pharmaceuticals can be a matter of U.S. national security. During the pandemic, it was discovered that the great majority of generic medications used in the United States came from China and India. Disruptions to the supply chain resulted in shortages of these medications and put the United States in a vulnerable position. Many experts at the time called for more production of these necessary goods in the United States.
Puerto Rico and U.S. National Security
Puerto Rico is the top producer of pharmaceuticals in the United States. The Island has 54 FDA-approved manufacturing plants for medicines, and an experienced workforce. Manufacture of drugs and medical devices is an obvious strength for Puerto Rico. In recent years, related bioscience research and development have also become important.
Electronics is another area of strength, and there has more recently been growth in aerospace and defense manufacturing in Puerto Rico as well. To a lesser degree, food and beverage production is also significant and a growing part of Puerto Rico’s economy. The Island is a good choice for manufacturing in general.
For U.S. companies hoping to reduce the length of their supply chain, Puerto Rico has clear advantages. The use of U.S. currency, adherence to federal laws and regulations, and a largely bilingual workforce are all beneficial to manufacturers. Logistics and infrastructure concerns continue to be challenges, but the proposals announced in the executive order can help companies needing to make investments in these areas. As more companies do so, the drawbacks will be reduced.
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