How do American manufacturers innovate today? Is it through product, process or business models – or all three? And how is innovation infused throughout day-to-day business decisions? We surveyed more than 350 manufacturers to find answers to these questions and more. Here you'll find key findings and data charts to help you benchmark your own efforts.

1. Innovation and growth
in U.S. manufacturing
grantthornton.com/GTinnovationMFG
Benchmarking data

2. Table of contents
2
INTRODUCTION
• Welcome note from Jeff French
• About the survey
• Key findings
• Section 1: General results
• Section 2: Business model
• Section 3: Impact of technology
• Section 4: Supply chain
• Section 5: Risk management
• Demographics

3. Welcome
3
INTRODUCTION
Innovation is more broad than ever before. Today, it’s not just about products — it’s also
about process, relationships with customers, advanced equipment that you use and
sustainable energy forms. Technology is breaking down barriers to entry, enabling new
paradigms in manufacturing; thus companies need to constantly innovate.
So we wanted to know: How do American manufacturers innovate today? Is it through
product, process or business models – or all three? And how is innovation infused
throughout day-to-day business decisions?
We surveyed more than 350 manufacturers to find answers to these questions and more.
Here you'll find key findings and data charts to help you benchmark your own efforts.
If you want to read in-depth analyses of our survey results,
make sure you visit grantthornton.com/GTinnovationMFG.
Jeff French
Leader, Manufacturing Practice
Grant Thornton LLP

4. About the survey
4
INTRODUCTION
The Innovation in U.S. Manufacturing Survey is based on answers
from 381 respondents collected in July and August 2015 from
C-suite level and senior leaders in the U.S. manufacturing
sector. Participant titles included CEO, COO, CFO, CIO,
chief marketing officer, chief sales officer, head of R&D, and
other senior executives.

5. Key findings
5
INTRODUCTION
• 98% of American manufacturers expect to see some sort of
technology-driven disruption in the near future
• 86% characterize technology as an opportunity, rather than a threat
• Manufacturers are confident about their innovation capability:
43% rank themselves above average
• Business model innovation to increase in the future: 25% have made a
major change to their business model in 2015; 41% will do so
over the next three years
• Manufacturers are more concerned about the risks of making
technology bets rather than barriers such as lack of technology
skills or disparate IT systems

6. 6
INTRODUCTION
• Top-of-mind worries for manufacturers: market and supply
chain risks
• Least worrisome: political and environmental risks
• Market and regulatory risks bear different weight for high-
growth and no-/slow-growth companies*:
*“High-growth” refers to companies that have grown at more than 10% a year over the past three years. “No/slow
growth” companies have experienced flat or declining performance, or growth at less than 10%.
Market risk Regulatory risk
High-growth 20% 17%
No-/slow-growth 30% 10%
Key findings

7. 7
INTRODUCTION
Take a deeper dive.
Check out our series of interactive
infographics and feature articles.

8. SECTION 1: GENERAL RESULTS
8

9. Rank vs. peers
9
INTRODUCTION
Q: Compared to peer companies, how would you rank your company in these areas?

10. Concerns about the future
10
INTRODUCTION
Q: What are the biggest concerns you have about the future of your company?

11. Competitive advantage
11
INTRODUCTION
Q: What are your company's most important competitive advantage?

12. Importance of innovation
12
INTRODUCTION
Q: How important are product, business model and process innovation to your growth
and performance?

13. Performance of innovation
13
INTRODUCTION
Q: How satisfied are you with your company’s performance on product, business model and
process innovation?

14. 14
INTRODUCTION
Get more context around survey results
from our interactive infographic.
The innovation play.

15. SECTION 2: BUSINESS MODEL
15

16. Business model change
16
INTRODUCTION
Q: To what extent has your company changed its business model in the last three years and
expects to do so in the future?

17. Issues driving change
17
INTRODUCTION
Q: What is the major issue driving business model change over the last three years and
in the future?

18. Repositioning tactics
18
INTRODUCTION
Q: Which of the following has your company done to reposition itself in the market
in the last three years?

19. 19
INTRODUCTION
Why balanced innovation is the only
way forward for U.S. manufacturers.
Read the in-depth article.

20. SECTION 3: TECHNOLOGY
20

21. Technology disruption
21
INTRODUCTION
Q: At your company, does technology-driven disruption represent
an opportunity or a threat?

22. Technology impact
22
INTRODUCTION
Q: Which of the following technologies has had/will have a significant effect on how your
company operates and produces goods?

23. Technology barriers
23
INTRODUCTION
Q: What are the greatest barriers to using technology to transform your
company’s performance?

24. SECTION 4: SUPPLY CHAIN
24

25. Supply chain challenges
25
INTRODUCTION
Q: Today, what are your company’s biggest
supply chain challenges?

26. Supply chain strategy
26
INTRODUCTION
Q: Over the next five years, how will your company’s supply chain strategy change
in the following areas?

27. Supply chain goals
27
INTRODUCTION
Q: In the next three years, what will be the single biggest goal of your
supply chain strategy?

28. 28
INTRODUCTION
Managing your supply chain is like
riding the dragon's back: Tame it or
it will turn your business to ashes.
This interactive infographic shows the
realities of managing today's chains.

29. SECTION 5: RISK MANAGEMENT
29

30. Most important risks
30
INTRODUCTION
Q: Which of the following are the most important risks
for your company?

31. Most difficult risks
31
INTRODUCTION
Q: Which risks does your company find the most significant and
difficult to manage?

32. DEMOGRAPHICS
32

33. Function/title
33
INTRODUCTION

34. Company revenue
34
INTRODUCTION

35. Industry sector
35
INTRODUCTION

36. Get the full story
From the smart use of technology to
fending off new risks, we have the
insights to help you infuse innovation
throughout your business.
grantthornton.com/GTinnovationMFG
36
Jeff French
Leader, Manufacturing Practice
Grant Thornton LLP
T +1 920 968 6710
E jeff.french@us.gt.com