Companies in the US plastics and rubber product manufacturing sector have increased their R&D investment by 19.4% compared to the previous year, according to the latest annual data.
The surge indicates strong growth following a 5-year innovation slump, where R&D investment in the industry fell by -16.2% in half a decade. In the latest year, companies in the sector invested a total of $3.1 billion on R&D, up from $2.6 billion the previous year. The level of increased investment is two times higher than the US average.
The research, collated by R&D tax credit specialists at Source Advisors, analyses up to 10 years of R&D investment figures in the USA using the latest available data to highlight the sectors which are investing in innovation to fuel growth.
Jordan Fazio, senior director R&D tax credit at Source Advisors, said: “Investment in R&D is no longer optional but a strategic necessity to stay ahead in the competitive landscape. 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”
R&D spending in the sector can encompass a wide range of investment areas, from the design and development of advanced polymer materials, improvements in the manufacturing processes, to the creation of more efficient and sustainable products. With specialist guidance, companies in the plastics and rubber sector stand to realise substantial savings on their tax bills through R&D tax credits.”
The plastics and rubber sector has seen the twelfth highest increase in R&D spend of all sectors in the USA. As the plastics and rubber sector continues to distribute 42% of output internationally***, investment in product innovation affirms US rubber and plastics status on the global market.
Specialist tax experts highlight that companies innovating in the sector could be missing out on tax savings, and are encouraged to examine their own R&D spend beside R&D tax credit criteria. The average successful claim from the sector was $44.8 thousand in 2022.
Bonnie Ruan, chief product officer at Beska Mold, said: “R&D investment is a critical driver for staying competitive. 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.”
“US businesses are allocating more resources to R&D and innovation to keep pace with fast moving technological advancements and changing consumer expectations. To ensure that R&D investments yield a substantial return, companies should adopt a strategic approach to their innovation efforts.”
Source: medicalplasticsnews.com
