Abbott Laboratories is making a significant investment in the local economy as President Donald Trump’s evolving tariff policies raise concerns about the global economy.
The company, which operates a wide range of businesses in medical devices and pharmaceuticals, announced during its first quarter earnings call on Wednesday that it will invest $500 million in manufacturing and research and development in Illinois and Dallas.
The majority of the investment will be allocated to the company’s headquarters in Abbott Park, Illinois, according to spokesperson Maddie King.
Abbott also maintains offices in the Willis Tower.
The company plans to have these investments operational by the end of the year and expects to hire approximately 200 employees in Illinois and 100 in Dallas over the coming years to support the expansion.
Abbott currently has 89 manufacturing sites worldwide, with 35 of those located in the U.S.
Over the past five years, Abbott has invested nearly $5 billion in domestic manufacturing and equipment, in addition to another $10.7 billion in research and development.
According to Chairman and CEO Robert Ford, the new investments are particularly focused on its U.S. transfusion diagnostics business, which plays a crucial role in screening the U.S. blood supply.
While King did not provide insights on how the shifting tariff policies relate to Abbott’s U.S. expansion plans, the company has been vocal about the impact tariffs may have on its operations.
Last week, Trump announced tariffs on Chinese imports amounting to 145%.
Additionally, 25% tariffs have been imposed on steel and aluminum imports, products from Mexico and Canada not covered under the U.S. free-trade agreement, and auto imports, including parts that will take effect next month.
There is also a looming potential for tariffs on medicines and pharmaceutical ingredients.
Tariffs are taxes applied to goods imported from foreign countries, often used by leaders to express disapproval of another nation’s policies or to encourage domestic production and industry.
During the investor call, Ford indicated that these tariffs would have a global impact on all of Abbott’s manufacturing sites.
However, the company feels equipped to implement strategies to mitigate the adverse effects of tariffs.
Ford stated that the estimated tariff impact by 2025 could reach a few hundred million dollars, noting that this would represent a half-year impact, as he does not anticipate any effect in the second quarter.
He suggested that the impact could start to be felt in the third quarter of 2025.
“One thing we have learned from tariffs is they don’t go away,” Ford explained.
He highlighted that previous tariffs imposed in 2017 are still in effect, which requires a long-term sustainable strategy for mitigation.
Ford emphasized the importance of optimizing the manufacturing network rather than solely relying on inventory to navigate potential future tariffs.
“While we can use our balance sheet to build inventory, we need to think beyond that regarding the long-term effects,” he commented.
Overall, Abbott Laboratories’ decision to invest heavily in local manufacturing and development is a response to both current challenges and future uncertainties in the trade landscape.
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