HOW TO SUCCEED WITH NEW BUILDING MATERIALS

Outside Partnerships Drive Profit and Revenue for Building Materials Firms; External engagements better correlate with increased revenues and earnings, relative to R&D spending, according to Lux Research's analysis of 50 large building materials companies

March 25, 2015 (Lux Research)

“Building and construction materials companies, beset by cyclical revenue growth and low profitability over the past decade, benefit more from partnerships and acquisitions than from increased R&D spending…Such external engagement was better correlated with earnings growth, relative to R&D spending, in an analysis of 50 large building materials companies…Insulation manufacturers are desperately trying to escape commoditization…Cement alone lacks a positive outlier…[and] the sector is going through a period of consolidation… Small innovative companies represent ready-made opportunities to identify and expand into technological or business model white spaces. Good examples include more efficient air handling systems for a tighter building envelope, new modeling and fabrication tools, and niche products in commoditized segments such as interior paints.” click here for more

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