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www.wbjournal.com • Worcester Business Journal • 2 019 Economic Forecast 13 Specialty industries M anufacturing, specifically advanced manufacturing and biomanufacturing, continues to make strides in Central Massachusetts, but rising international trade tensions and tariffs threaten to derail some long- time champions of the industry. On the other hand, new and exciting industries continue to make their pres- ence known in Worcester County. Biomanufacturing will continue to make strides in Central Mass. The long-proposed Worcester >> WuXi Biologics to anchor Worcester biotech park A Chinese biotech company will build a $60-million facility at the Worcester Biomanufacturing Park, becoming the first tenant at the site of the former Worcester State Hospital, which the Worcester Business Development Corp. is attempting to turn into a major biotechnology hub. WuXi Biologics announced the new facility on June 10, which brings approximately 150 new jobs. The facili- ty is the firm's 11th drug manufactur- ing plant and first in the U.S. The plant, dubbed the "Facility of the Future," will be built using the company's single-use bioreactors and will be designed to run continuous bioprocessing – technology to be used in America for the first time, WuXi said. The company is poised to receive up to $21 million in public money for the project, including grants, tax credits, rent abatements, exemptions and loans from city and state sources, including Massachusetts Life Sciences Center and MassDevelopment. LakePharma, a California biologics company with a presence in Worcester, was once thought to be the anchor ten- Top manufacturing stories of 2018 Continued on Page 14 Biotech, cannabis, tariffs to highlight manufacturing in 2019 M A N U F A C T U R I N G BY ZACHARY COMEAU Worcester Business Journal Staff Writer Biomanufacturing Park has finally land- ed an anchor tenant in China's WuXi Biologics, which is planning a $60-mil- lion biomanufacturing facility at the site of the former Worcester State Hospital. That news came just months after California-based biologics firm LakePharma pulled out of the project to instead move into a 70,000-square-foot facility in Hopkinton. With an anchor tenant, the Worcester Business Development Corp.'s vision for the park may finally come to fruition as more biotech tenants are expected to sign on in the coming months and years. The region's industry giants, like Boston Scientific and Hologic, will con- tinue to make headlines for new prod- ucts and massive acquisitions. Tariffs and trade wars Several more traditional Central Massachusetts manufacturers have openly complained about tariffs and a seemingly never-ending trade war with China has begun hurting business. If the situation doesn't resolve itself at the federal level, some small busi- nesses in Central Massachusetts could, at the least, severely reduce staff and cut jobs. That would be crushing for an industry already struggling to fill open jobs due to a lack of skilled workers. Oxford laser makers IPG Photonics has seen its stock tumble due to what the company calls geopolitical and macroeconomic woes, and wire mesh maker Riverdale Mills says tariffs on steel are causing raw material prices to skyrocket. It's clear that this road isn't sustain- able for an industry that's been fighting tooth and nail to stay relevant. Weed, beer and food On the flipside, the area could get a huge boost from recreational cannabis. Worcester County and Central Massachusetts has become a hotspot for the budding, highly-taxed industry. Massachusetts lawmakers are expect- ing up to $1 billion in legal weed sales next fiscal year, and two adult-use stores in the state have already taken in more than $7 million in gross sales through the first three weeks. So far, there are 47 cannabis business license applications in Worcester County, including for cultivation, man- ufacturing and retail sales. The region is by far the busiest for the industry so far. On a related note, some data shows craft beer can take a hit in states with recreational marijuana, but new brew- eries are still opening throughout the area. Consumer-facing industries like can- nabis, beer and Worcester staples like Polar Beverage and Table Talk Pies appear to be thriving. Manufacturers like Lampin Corp. in Uxbridge expect to take a hit from this year's new tariffs. Michael Dundas of Milford marijuana firm Sira Naturals has become a major player in the industry. Mustang Bio completed construction on its new Worcester space in December. WuXi Biologics is moving into the former Worcester State Hospital site. W