The U.S. plastics and rubber industries have increased their research and development spending by about 20 percent over this time last year, according to data from Source Advisors. The surge is about double the U.S. average from a year ago, according to the Fort Worth based market research group.
"Investment in R&D is no longer optional but a strategic necessity to stay ahead in the competitive landscape", said Jordan Fazio, senior director of R&D Tax Credit at Source Advisors. "We've seen through working with national and international firms in the plastics and rubber manufacturing sector the increased importance placed on being at the forefront of technology to improve existing services and identify new innovation routes".
The rubber and plastic spaces invested an aggregate total of about $3.1 billion in research and development this measured period, against $2.6 billion in R&D spending last year.
"The surge indicates strong growth following a 5 year innovation slump, where R&D investment in the industry fell by 16.2 percent in half a decade", according to Source Advisors.
The plastics and rubber industries saw the 12th highest increase in R&D spending of all measured sectors in the U.S.
"R&D investment is a critical driver for staying competitive", said Bonnie Ruan, chief product officer at Miami based Beska Mold. "It allows companies to anticipate market trends, adapt to technological changes and respond proactively to the evolving needs of their customers".
"For example, at Beska Mold, our commitment to R&D has enabled us to develop advanced manufacturing techniques that significantly reduce production times and costs, enhancing our market position".
Source Advisors said R&D spending in rubber and plastics encompasses a wide range of investment areas, from design and development of advanced polymer materials and improvements in the manufacturing processes, to the creation of more efficient and sustainable products.
As the plastics and rubber sector continues to distribute 42 percent of output internationally, investment in product innovation "affirms U.S. rubber and plastics status on the global market", the group stated.