KEY POINTS
-
Lilly is investing $6 billion to build a new pharmaceutical manufacturing facility in Huntsville, Alabama, marking the third of four new U.S. sites it plans to establish.
-
Construction is anticipated to begin in 2026, span six years, and create 3,000 construction jobs.
-
The facility will produce ingredients for drugs, such as Lilly’s oral treatment for obesity in development.
Global medicine-maker Lilly announced plans on December 9, 2025, to invest over $6 billion in an active pharmaceutical ingredient (API) manufacturing facility in Huntsville, Alabama.
The project, one of the largest industrial investments in the state’s history, underscores Lilly’s commitment to bolstering U.S.-based pharmaceutical production and supply chain resilience, according to a company statement.
Expected Construction Timeline and Milestones
Construction is set to begin in 2026 and is projected to span six years, targeting completion by 2032. The timeline reflects the scale and complexity of the project, which will include manufacturing, logistics, packaging, laboratory, and utilities infrastructure.
While detailed phase breakdowns remain undisclosed, the multi-year build will create approximately 3,000 nonresidential jobs for construction trades.
A rendering of Lilly’s proposed $6 billion manufacturing facility in Huntsville, Alabama. This next-generation active pharmaceutical ingredient (API) facility will focus on producing small-molecule synthetic and peptide medicines, including treatments like GLP-1 therapies. Image: Lilly
Lilly officials released this anticipated project timeline:
-
2026: Groundbreaking and initial construction launch, ramping up construction job creation.
-
2026 to 2032: Multi-year build phase covering major infrastructure components.
-
2032: Facility completion and operational readiness for small-molecule and peptide production, including GLP-1 drugs like orforglipron, its oral treatment for obesity.
Building Advanced Technology and Sustainability
The Huntsville facility will integrate advanced technologies, including machine learning, AI-driven monitoring, data analytics, and digital automation, to ensure efficient and precise production processes.
Sustainability is a core focus, with the plant designed to minimize waste and target carbon neutrality. These features position the facility at the forefront of next-generation pharmaceutical manufacturing.
Opportunities in Manufacturing and Emerging Sectors
Lilly’s focus on innovation aligns with broader trends in the manufacturing sector, which demonstrated significant growth in 2025. While total construction starts were up modestly last year, sharp contrasts occurred between expanding and shrinking segments.
A recent article by ConstructConnect author Maila Kim, in collaboration with Chief Economist Michael Guckes, emphasized the importance of strategic focus in navigating the segment divergence. “Our data tracks 33 different subcategories, and a clear pattern has emerged: about half are growing while the other half are contracting,” Kim noted.
While overall construction growth slowed in 2025, Kim stated, “the strongest growth is happening in Data Centers, Manufacturing, Sports and Convention Centers, and Airports.”
The construction industry in 2025 experienced slower overall growth, yet growth opportunities emerged in sectors such as manufacturing, data centers, sports and convention centers, and airports. Shown above is a chart of the 2025 Construction Starts for Select Subcategories from ConstructConnect.
Read more: 2025 Construction Industry Takeaways to Make Smart Decisions in 2026
Economic and Regional Impact
Alabama Governor Kay Ivey hailed the Lilly project as the state’s largest initial investment, with the potential to generate up to $4 in local economic activity for every dollar spent.
Huntsville Mayor Tommy Battle highlighted the city’s innovation ecosystem and proximity to the HudsonAlpha Institute for Biotechnology as key factors in securing the project.
The extended construction schedule officials anticipate offers contractors the potential for multi-year projects in a region renowned for its strong manufacturing talent. Lilly’s manufacturing of medicines and its emphasis on sustainable, carbon-neutral design may require specialized building skills in some areas of the project.
Leaders anticipate phased hiring tied to structural, mechanical, and cleanroom milestones.
Meeting Growing Demand
Once operational, the facility will create 450 permanent positions in operations, science, and laboratory work. It will focus on producing small-molecule synthetic and peptide medicines, including GLP-1 therapies, which are in high demand for treating obesity and related conditions.
Earlier this year, Lilly outlined its commitment to strengthening domestic medicine production across various therapeutic areas. The company has since announced plans for new facilities in Texas and Virginia, as well as an expansion of its existing manufacturing site in Puerto Rico.
An additional U.S. location is expected to be revealed in the coming weeks, officials said.
Lilly is a global pharmaceutical company that has pioneered treatments for diabetes, obesity, Alzheimer’s, immune disorders, and cancer.
HudsonAlpha Institute for Biotechnology in Huntsville, AL, is a nonprofit genetics research organization that combines scientific discovery, education, and economic development to advance health, agriculture, and biotechnology.
Stay Connected
Stay connected with ConstructConnect News, your source for construction economy insights, market trends, and project news.
About ConstructConnect
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com
