The Link Between Innovation & Growth for Industrial Manufacturers

Report: The most innovative manufacturers grow much faster than the least innovative.
lindsay-white

A recent survey from PwC found that the 20 percent of industrial manufacturing companies that are the most innovative are growing much faster than the least innovative companies. The most innovative companies grew revenues 38 percent over the past three years, while the least grew 10 percent, according to the report.

Arguably, innovation is critical to a manufacturer’s future – and is becoming more critical as automation transforms factory floors and technology fuels new ways of approaching old problems.

The PwC report contends that innovation must become a priority for industrial manufacturers, and they must have what the report calls an “innovation roadmap.” Why? The most innovative companies are getting three times as much revenue from new products and services, the survey found.

What’s more, many of the industrial manufacturing executives in the survey said they expect to have to generate most of their growth organically moving forward, shifting away from global expansion. Read the report from PwC here.

In a recent episode of MDM’s Executive Briefing, Chester Collier, senior vice president for global distribution for Walter Surface Technologies, talks about why innovation is so critical in today’s markets, starting at about 5:52 in the clip below.

“Why is this market – the industrial market – so slow to adopt innovation sometimes?” Collier asks. “It seems that innovation gets adopted out of necessity and not because people see the opportunity.

“If someone else does it we will adopt that innovation, but up until that time we have a hesitancy to do it.”

Find Lindsay on Google+

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.