UL* (a safety science company) just released a new annual study on Navigating the Product MindSet — which resulted from quantitative interviews with 1,195 manufacturers and 1,235 consumers across a range of export and import markets in high-tech, building materials, food, and household chemicals — that had some interesting facts and findings that we should all be aware of. These include:
- On average, manufacturing companies rely on more than 35 different global contract manufacturers to create a single product.
- In the US, 50% of medical devices, 80% of medication ingredients, 75% of seafood, and 60% of fruits and vegetables come from other countries.
- In the last year, global trade flows increased:
- 12.9% in developed economies
- 16.7% in developing economies
- Per person, Chinese consumers are outspending US consumers 3 to 1 in High-Tech purchases
- 81% of Chinese consumers would buy more green products if environmental claims could be substantiated
- The majority of manufacturers believe they are ahead of the curve in:
- safety (97%)
- reliability (97%)
- sustainability (94%)
- innovation (89%)
- The majority of manufacturers believe their quality and on-time delivery are the best-performing aspects of their supply chain with
- 79% claiming consistent product quality
- 71% claiming on-time product delivery
- While 49% of manufacturers believe that product reliability & product safety are key factors in effective global competition, only 9% believe that designing sustainable products is a key factor (and only 8% believe operational sustainability is a key factor).
- Only 31% of manufacturers consider environmental products to be profitable
- 50% of manufacturers will increase sourcing from other countries
The Top 10 Export Markets are:
- USA
- China
- Germany
- Japan
- France
- UK
- Netherlands
- Italy
- South Korea
- Hong Kong
The Top 10 Import Markets are:
- USA
- China
- Germany
- Japan
- UK
- France
- Italy
- South Korea
- Netherlands
- Canada
So what does all this mean? Our next post will reflect on these findings.
* Underwriters Laboratories Inc.