The Benefits of Puerto Rico for Reshoring
“Puerto Rico: Where reshoring meets resilience, innovation fuels efficiency, and opportunity drives economic revitalization.” Dr. Thomas Agrait
The Story behind this article
This week, under the leadership of the Puerto Rico - United States of America Chamber of Commerce (PRUSAC), we concluded an outstanding working session focused on the re-shoring project and its implications for Puerto Rico. The team, comprised of esteemed professionals including Tito Colorado, José L. Rivera, Luis Alemañy, Iván Lugo, Yolanda Lassalle, Luis Torres Llompart, and myself, worked collaboratively to articulate critical insights. Guided by Mr. José L. Rivera’s leadership, we developed a robust platform to advocate for Puerto Rico’s role in reshoring initiatives, which we will present in Washington this February. This effort showcased the team’s dedication and expertise in driving economic opportunities and advancing the island’s potential in the global economy.
Introduction
In a rapidly evolving global economy, reshoring has emerged as a critical strategy for companies seeking to enhance supply chain resilience, reduce costs, and strengthen operational efficiency. As businesses reconsider their offshore production and look closer to home, Puerto Rico stands out as an ideal location for reshoring initiatives. With its unique blend of geographical advantages, skilled workforce, favorable tax incentives, and robust infrastructure, Puerto Rico offers compelling benefits for companies aiming to reinvigorate their operations while contributing to the island’s economic revitalization.
Puerto Rico Competitive Advantages
- Geographical Proximity and Strategic Location
Puerto Rico’s position as a U.S. territory in the Caribbean provides unmatched geographical advantages for reshoring. Situated between North and South America, it serves as a strategic gateway to both markets. This proximity allows companies to reduce shipping times and transportation costs, ensuring faster and more efficient delivery of goods. Moreover, its inclusion in the U.S. customs zone eliminates the need for import duties, providing a seamless flow of goods to the mainland.
- Skilled Workforce and Bilingual Talent
Puerto Rico boasts a highly educated and skilled workforce with expertise in industries such as pharmaceuticals, manufacturing, aerospace, and technology. The island’s bilingual population—fluent in both English and Spanish—provides a competitive edge, enabling companies to cater to diverse markets and communicate effectively with global partners. This talent pool, combined with the island’s strong educational institutions and vocational training programs, ensures that businesses have access to a workforce capable of meeting modern industry demands.
- Tax Incentives and Business-Friendly Policies
Puerto Rico offers a range of tax incentives that make it an attractive destination for reshoring. Programs like Act 60 provide significant tax reductions for companies establishing operations on the island, including low corporate income tax rates and exemptions on property and municipal taxes. These incentives not only lower operational costs but also create a favorable environment for long-term investment and growth.
- Robust Infrastructure and Connectivity
The island’s well-developed infrastructure supports the needs of modern businesses. Puerto Rico features world-class ports, international airports, and a reliable energy grid with ongoing efforts to incorporate renewable energy sources. Its advanced telecommunications network ensures seamless connectivity, vital for industries that rely on real-time data and digital operations. This infrastructure positions Puerto Rico as a hub for innovation and efficiency in reshoring efforts.
- Alignment with Supply Chain Resilience
The COVID-19 pandemic highlighted the vulnerabilities of global supply chains, prompting companies to prioritize resilience and proximity. Puerto Rico offers a stable and secure environment within U.S. jurisdiction, ensuring compliance with federal regulations and intellectual property protections. This alignment with U.S. laws reduces risks and enhances trust, making it an ideal location for industries that require stringent quality and safety standards.
- Economic and Social Impact
Reshoring to Puerto Rico offers transformative benefits for both businesses and the island’s economy and communities. By establishing operations on the island, companies generate employment opportunities, invigorate local industries, and ensure the reliable supply of critical medicines that save lives and sustain health around the world. These efforts not only enhance business resilience but also play a pivotal role in Puerto Rico’s and other countries recovery from economic challenges and the aftermath of natural disasters. This symbiotic relationship drives sustainable growth, fortifies the island’s infrastructure, and strengthens its social fabric, creating a brighter and more prosperous future for all stakeholders involved.
To conclude
Puerto Rico’s unique combination of strategic location, skilled workforce, attractive tax incentives, and robust infrastructure makes it an ideal candidate for reshoring initiatives. For companies seeking to enhance efficiency, reduce costs, and strengthen supply chain resilience, Puerto Rico offers an unparalleled opportunity. At the same time, reshoring efforts can play a pivotal role in revitalizing the island’s economy, creating a partnership that benefits businesses and communities alike.
Embracing Puerto Rico as a reshoring destination is not just a strategic move for companies—it is a step toward building a more resilient and prosperous future.
Dr. Thomas Agrait
Email: thomas.agrait@lec.guru
Tel:+ 1 (954) 258-3117
CEO @ OcyonBio | Partnership Development
5dLet’s now find a way to protect PR safely & Security by creating internally controlled fuel sources of nuclear n solar. Once completed PR becomes the powerhouse it’s designed to be in pharmaceutical mfg, Space, n AI Driven discovery.
Turnaround Leader| Value Creator| Strategist| Entrepreneur| Game-Changer| Philanthropist
1wThank you for sharing this summary with a detailed plan for executing the strategy to bring manufacturing companies back to the island. We definitely have many strengths to meet the current global requirements, and this group will certainly work hard to make it happen. I’m glad to be part of this initiative.
INDUNIV Research Center, Inc. and Partner at WESSX, Inc
1wKudos, This is a great summary of PR advantages. I might add that PR possess great streangth in its capacity to Innovate. This is proven by the numerous developments in Pharma advanced manufacturing with 1st. time approved by FDA , among others. PR has the best R&D tax credit incentives of USA..
Industry & int’l recognized Mktg. Expert- awarded Top National Mktg. Award. Exp. Int'l Exec. in Mgmt., Mktg. & Mktg. Research, Dig. Prod., Adv. & Corp. PR. Launched PRUSA Channel, PR-USA Ch. of Commerce- Uniting 9M PR's!
1wCentro Unido de Detallistas & Ramon Barquin III, along with Industry University Research Center & Ivan Lugo are founding members of the coalition.
Business Process Transformation(BPT) Coach, Author and Cognitive Neuroscientist. Post-Doc-Neuroscience @ MIT
1wTerry J. Ingram Indeed Terry, we recognize that it will take true leadership and visionary actions, not just words, to bring these corporations back to Puerto Rico. It is not enough to talk about the potential of reshoring or the advantages the island has to offer; what is needed now is decisive action that demonstrates Puerto Rico’s commitment to revitalizing its economy and positioning itself as a global hub for innovation and manufacturing. As private citizens and conscious Puerto Ricans, we at PRUSAC are stepping up to take real action. We understand that reshoring is not merely a policy initiative but a movement driven by collective effort, collaboration, and strategic decision-making. Through fostering partnerships, creating favorable environments for businesses, and leveraging the island’s inherent advantages, we are setting the stage for a prosperous future and a new era of economic growth for Puerto Rico.