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Reprinted with permssion from: Society of Plastics Engineers (SPE)
Perceptions regarding who is primarily responsible for innovation have expanded from the confines of the
laboratory to include all employees of a company, according to a study of a cross section of managers and
professionals in manufacturing companies in the Americas, Asia, and Europe. The research results were
released August 23, 2006.
More than a third of respondents (37%) said they count on all employees, not just the head of science and
technology, to advance innovation in their companies. Twenty-three percent of respondents felt that
innovation is the responsibility of the chief technology officer.
The global study was conducted by Harris Interactive, Inc., on behalf of Dow Corning Corp. The study
involved a telephone survey of executives from a wide range of industries included electronics,
construction, beauty and personal care, automotive, textiles, rubber, plastics, paper, and health care. Harris
Interactive, based in Rochester, N.Y., is the 13th largest market research firm in the world and is widely
known for The Harris Poll®.
“The results show a trend away from the traditional ‘inside-out’ approach to innovation, which involves
creating a new product or solution and then looking for a way to sell it,” said Scott Fuson, global executive
director for marketing, sales, and customer service at Dow Corning. “Respondents now are turning to an‘outside-in’ perspective of monitoring the external environment, market needs, and customer expectations
and then creating products, services, and solutions to address those needs.”
Respondents’ ranking of factors that make a supplier a successful innovator reinforce this perception. The
top-ranked factor was having an “intimate understanding of what customers want and need.” This response
scored 8.9 out of a possible 10, where 10 = “extremely important” and 0 = “not at all important.” The
second highest response was “employees are creative,” which scored 8.6, and third was “apply the latest
developments in science and technology,” at 8.5.
“Traditionally, company leaders felt that advancements in science and technology were the primarily and
almost solely responsible for innovation,” explained Gregg Zank, chief technology officer and executive
director of science and technology. “This result shows that respondents appreciate the significance of
understanding customer needs first and foremost.”
When identifying “the single biggest challenge facing your business today,” 36% of global respondents
indicated their top-ranked challenge is “lower-cost competitors.” Other challenges identified in the global
results, in order of priority, were new market development at 19%, innovation at 16%, and rising energy
costs at 13%.
Regional results showed marked variations. The challenge of lower-cost competitors is perceived as being
more critical in Asia (36%), compared with 29% in the Americas and 29% in Europe.
Thirty-two percent of respondents in Europe feel that innovation is by far the single biggest challenge
facing their businesses today. Only 10% of respondents in the Americas and Asia named innovation as their
top challenge.
“This mirrors feedback from the European Commission-sponsored Innovation Scorecard that tracks
innovation progress in Europe,” Zank said. “Commission officials have noted that innovation is critical to
boosting growth rates and productivity in Europe.”
More information about the research methodology and results from Dow Corning is available here (pdf).
U.S. Demand for Plastic Film To Reach 15.2 Billion lbs in 2010
Demand for plastic film in the United States is forecast to increase 2.6% annually to 15.2 billion lbs in
2010, valued at $12 billion (resin cost only). Total demand for plastic film (including resins, additives, and
processing and other costs) will expand 4.5%/yr to $28.6 billion. Advances will result from cost,
performance, and source-reduction advantages over rigid packaging. Average film prices are expected to
moderate following the steep price increases between 2004 and 2006, which were caused by spikes in costs
for raw materials and energy. These and other trends are presented in Plastic Film, a study from The
Freedonia Group, Inc., an industry market research firm.
Low-density polyethylene will remain the most popular plastic film resin, based on its competitive cost
structure, versatility, and opportunities in areas such as produce and snack packaging, stretch and shrink
wrap, and trash bags. Slightly faster increases are expected for high-density polyethylene film because of
good growth in areas such as baked goods packaging and retail bags.
Demand for polypropylene film will expand the fastest, with 3.4% annual growth through 2010, driven by
produce, grain mill, dairy product, and other food-packaging applications. Demand for polyester film will
decline through 2010 as a result of decreasing use in photographic film and magnetic tape. Nonetheless,
opportunities are anticipated in food-packaging applications, particularly snack foods, confections, and
frozen food, owing to polyester’s higher barrier properties. Demand for polyvinyl chloride film will
advance marginally.
Packaging accounted for 73% of all plastic-film use in 2005. Best growth is expected in secondary
packaging applications based on opportunities in stretch and shrink wrap, and retail bags. Food packaging
will grow at an above-average pace, driven by continued expansion in produce, confections, and frozenfood
segments. Nonpackaging film advances will be fueled by trash-bag growth, and constrained by
declining applications in photographic film and magnetic tape. Research efforts will focus on improving
film’s strength, barrier, and graphic capabilities, while maintaining a competitive cost position.
Plastic Film (published August 2006, 324 pages) is available for $4400 from The Freedonia Group, Inc.
For further details, please contact Corinne Gangloff at 440-684-9600 or pr@freedoniagroup.com. |
