The 2020 Mid-Year Economic Update_long

Report: U.S. Falls Behind in Manufacturing, Distribution Innovation

Non-U.S. firms take a 'more holistic view' of manufacturing innovation.
jenel-white

The U.S. may be falling behind when it comes to manufacturing innovation, according to the 2015 Manufacturing & Distribution Monitor Report from McGladrey. Compared to other industrialized nations, the U.S. ranked sixth based on overall innovation and tenth based on manufacturing innovation.

The report, released last week, revealed that many U.S. manufacturers and distributors trail their global counterparts in several areas that fuel innovation and business growth.

Confidence in protecting and growing foreign market share. While U.S. business leaders are confident about protecting and growing domestic market share, many are "uneasy" about their foreign market share, according to the report. Just under 60 percent of U.S. firms expressed any level of confidence about protecting nondomestic market share, compared to 75 percent of European manufacturers and 73 percent of Asia-Pacific manufacturers. The strong U.S. dollar was cited as one of the reasons for the lack of confidence.

U.S. firms lack strong strategic planning processes. According to the report, only 40 percent of U.S. manufacturing and distribution executives said their companies have strong strategic planning processes, compared to 55 percent of non-U.S. leaders.

Fewer U.S. firms have formal innovation processes. Most U.S. manufacturer participants (83 percent) said they have a formalized process to drive innovation, but they're still being outpaces by companies in Latin America (91 percent), Asia-Pacific (90 percent) and Europe (86 percent).

Innovation in the U.S. is less broad-based than other regions. Companies in the Asia-Pacific region take a much broader approach to innovation than any other region. At least 30 percent of thriving manufacturers in this region say they expect to drive growth in 11 of 13 investment categories. By comparison, U.S. companies were focused on only five. "Clearly a more holistic view of innovation may well be what separates winners from losers in the advanced manufacturing sector," said Frank Le Bihan, a principal in McGladrey's international services office, in the report.

Read more about the results from the 2015 Manufacturing & Distribution Monitor in the July 25 issue of MDM Premium.

About the Author
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.

By subscribing, you are agreeing to MDM’s Privacy Policy.

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

0

articles left

This is your last free article

Subscribe to MDM Premium today and 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

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.