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Manufacturers slow to innovate, report claims

MATERIALS AT INTERBUILD

CONSTRUCTION industry manufacturers only develop new products when forced to by changes in regulations, according to industry research.

A report on how manufacturers can improve profitability highlighted concerns that much of the development of new products was driven by regulatory approval and price pressures rather than a desire to innovate.

Launched at Interbuild last week, the Construction Products: Working Smarter to Improve Profitability report was carried out by research consultant CIL, part of accountants Ernst & Young, and the Construction Products Association.

And although it underlines massive strides made by the industry in developing new products in recent years it calls for companies to take advantage of Government and European Union incentives.

But the report indicated that clients were beginning to see beyond traditional lowest price procurement and were edging toward best value purchasing.

It claims the private sector is finally beginning to realise the value of service and product innovation but it calls for product development to be refocused away from purely cost reduction initiatives and for improvements in public sector tendering.