Factoring Social Costs

In evaluating scenarios for its business after a 2007 management buyout, Pharmalucence managers considered the impact on employment.
“We were at the bottom of the recession where jobs were being lost; we didn’t want to be part of that,” President Glenn Alto said in a presentation “Making It Massachusetts” at Interphex.
Outsourcing pharmaceutical production—one of the options considered—would downsize the firm by more than 50 employees. Labor would be idled with layoffs and rehires if a second option of plant renovation were followed. Both scenarios were deemed as well to be too constricting of growth.
The decision to develop a CMO business in a new facility with new production assets—the highest cost option—yielded a platform for growth and employee retention.
“We felt we had a good, solid business and culture that was worth preserving; and a good, solid business premise that we could succeed with,” Alto said.
In the down-turned economy of that year, 75 existing jobs were secured. The firm has since hired 13 new employees, and is adding 10 more positions to support the contract business.
No votes yet