Puerto Rico has spent more than 70 years building one of the most established manufacturing bases in the U.S.

• Now, that track record is shaping how companies evaluate where to expand next.

Why it's important: Global supply chain disruptions, geopolitical uncertainty and rising costs have pushed reshoring and supply chain diversification to the top of the boardroom agenda, but for many companies, the math on a full mainland relocation doesn't pan out.

• Labor costs, real estate and operational overhead can make domestic expansion prohibitive, particularly for manufacturers and service providers operating on tight margins.

Okay, but: Puerto Rico offers a middle ground many companies are missing.

As a U.S. jurisdiction, it offers the legal certainty and market access of a domestic operation without the mainland price tags.

The proof: The island is the No. 1 pharmaceutical manufacturing jurisdiction in the United States, home to over 100 FDA-approved facilities and nearly $50 billion in annual pharmaceutical production.

• Ten of the world's top 20 pharmaceutical companies operate manufacturing on the island.

That concentration of expertise was built over seven decades of operating some of the world's most complex, highly regulated supply chains.

Here's what else: Puerto Rico's value proposition isn't limited to pharmaceuticals.

• That same production ecosystem is now supporting expansion into aerospace, technology, logistics and professional services.
• The island is also home to established industry clusters in bioscience, medical devices, advanced manufacturing and aerospace.

The benefits: Companies expanding to Puerto Rico operate fully within the U.S. legal, regulatory and intellectual property framework, without the complications of an international expansion.

Key advantages include:

• A skilled bilingual workforce supported by over 80 universities and colleges, producing strong STEM and technical talent.
• Competitive incentives under the Puerto Rico Incentives Code (Act 60), including a 4% corporate tax rate for qualifying export services.
• Operating costs that are frequently more competitive than mainland U.S. alternatives.

• Geographic proximity to the U.S. mainland with direct access to federal courts, IP protections and regulatory bodies.

As an island with a long history of attracting global industry, Puerto Rico offers a cost structure and talent base that mainland markets struggle to match.

• For site selectors and executives evaluating their next move, that combination is increasingly hard to pass up.

How it's done: Invest Puerto Rico, the island's official business attraction organization, works directly with companies throughout the expansion process, from early site evaluation through implementation.

• The organization connects incoming companies with local partners, available incentives and workforce resources, helping streamline what otherwise could be a complex process.

The takeaway: Puerto Rico offers companies a strategic way to expand within the U.S. while maintaining cost efficiency and operational resilience.

• With a highly skilled workforce, strong industry clusters and seven decades of experience supporting global manufacturing and innovation, the island provides a platform for companies looking to grow, reshore operations or diversify supply chains.

Explore how Puerto Rico can support your company's expansion.