Well they aren’t spending it on research and development or their companies’ futures or new job opportunities or anything of substance. As a matter of fact it seems that investment in research and development is heading for an all time low. Instead they think they can continue to cannibalize the market share of their competitors!
A new survey of manufacturers has found that almost a third of the companies spent less than 1% of sales on research and development for new products.
Nearly 40% of the 116 manufacturers surveyed across the nation viewed increased share in existing product markets as their top growth opportunity.
The survey from Sikich LLP, a Naperville, Ill.-based accounting and consulting firm, covered companies with annual revenue from $1 million to more than $100 million.
“Many manufacturers continue to adopt a cautious approach to growth. But while a focus on existing markets presents less risk, it won’t sustain manufacturers forever. Eventually, companies will need to become more aggressive and invest in new markets and products to drive differentiation and future success,” said Jim Wagner, the Milwaukee-based partner-in-charge of Sikich’s manufacturing and distribution practice.
Yeah, but I was told that all we needed to do was give more money to the ‘job creators’ and they would create jobs? What happened between the governor’s office and the shop floor?