By William Tamulynas, Team Lead, Sikich NetSuite
The prognosis for the possibility of a recession—and what kind of impact it might have on life sciences companies—offers both reasons to be cautious, as well as reasons for hope.
The glass-half-full side of the equation is that life sciences companies may be better insulated from economic downturns than other industries, thanks to burgeoning demand. As a 2022 report from Cushman & Wakefield notes, the life sciences industry is poised for further growth in the years ahead, following on the heels of extraordinary investment, expansion, and innovation.
But no industry is immune to the turbulence of a difficult economy. Some of the potential challenges include:
- Supply chain disruption
- Higher interest rates
- Labor shortages
- Capital markets in a less-than-bullish mood
- A downturn in available funding, including the R&D stage
To maintain momentum, life sciences businesses need to plan carefully, taking steps to minimize disruption. More importantly, staying on top of new developments in technology can deliver transformative advantages and build insulation against losses.
Here are 5 ways to make sure your organization is prepared for the eventualities ahead.