Research & Development Are Keys To Success, If Money Is Spent Wisely

Research & Development Are Keys To Success, If Money Is Spent Wisely

The secret to success for a vibrant automotive aftermarket just may be something you can’t see with the naked eye.

How so? During the past 60 days or so, I’ve visited and researched a number of aftermarket manufacturers who are doing their part to make sure their parts are the absolute best they can produce.

At one company, they use electron microscopes to analyze steel at the molecular level, to understand how to make it better. Electron microscopes aren’t exactly cheap. And they’re planning to buy a new one. In the past few weeks, our sister publication, aftermarketNews.com has published a number of stories concerning openings and additions to research and development facilities. These are welcome developments during a time when the overall economy is uneasy and the stock market has been on a constant rollercoaster ride. During most tough economic times, many companies hold on to R&D because they know it can be an effective weapon in their arsenal.

Parts manufacturers aren’t guaranteed better profits with more R&D spending because there simply aren’t guarantees in R&D. Researchers may know what they want to accomplish but exactly how to get there isn’t exactly known and that’s why they’re doing it in the first place.

A recent study by Booz & Co. says that just because a company throws money at innovation doesn’t mean it will lead to financial success. The consulting firm’s report “Global Innovation 1000” concludes R&D dollars alone won’t lead to greater riches for a company. It’s a culture of innovation that will.

Barry Jaruzelski, author of the study, told CNBC that “culture is key to innovation success, and its impact on performance is measurable.”

“It’s not that money doesn’t matter,” Jaruzelski told CNBC. “You have to have resources, but the differences between two companies with the same budget is really the quality of their process culture, alignment and focus.” To illustrate how spending money alone won’t lead to greater profits, the report reveals that among the top 10 innovators, Microsoft, Samsung and Toyota also appear on the top 10 spenders list. So seven of those companies are able to be more innovative without spending as much money as others.

DON’T FORGET THOSE BUSINESS CARDS
By the time you get this magazine, AAPEX 2011 will begin to be a memory. Many companies will already begin planning for 2012. But there’s something you probably brought back from the most recent show that you should do something with: All those business cards.

I’ve seen it happen many times before. Someone goes to a trade show, makes fantastic contacts, has great conversations, and they trade business cards with countless people. Then they get on a plane and the business cards go in a drawer, rarely to be seen. Why does this happen? No one knows why. I’m sure scientists somewhere are studying this fascinating phenomenon. But don’t let it happen this year. Dig those cards out — better yet — don’t relegate them to the drawer in the first place. Tap those business cards for the opportunities that may await you.

You May Also Like

What Will the ‘COVID-Era Consumer’ Do in 2022?

The beauty of the automotive aftermarket is that the economic conditions always seem to work in the industry’s favor.

Online Shopping

Remember the tariffs? Nathan Shipley does. Back in 2019, “that’s all we were talking about as an industry,” Shipley recalled, during his “Aftermarket Outlook 2022” presentation this past November at AAPEX.

Looking back at the “Distribution Preview” in the January 2019 issue of AMN/Counterman, aftermarket leaders consistently expressed concerns that former President Trump’s tariffs – and China’s retaliatory tariffs – could disrupt aftermarket supply chains, leading to higher prices and even production interruptions. Tariffs remained on their radar in January 2020, although it looked like the aftermarket was weathering the storm.

Right To Repair, Trade Associations And You

In the fight for Right to Repair legislation, aftermarket trade groups can’t do it alone.

Veterans Can Be Heroes Off the Battlefield Too

Veterans bring an incredible amount of value to the civilian workplace, in terms of nontechnical and technical skills.

Veterans and Vehicles
What’s Really Driving The Automotive Aftermarket’s Growth?

NPD’s Nathan Shipley looks at the many moving pieces contributing to the industry’s recent spike in demand.

aftermarket growth
Strength In Numbers

The automotive aftermarket is filled with great people. In fact, many say it’s our strong suit.

Teamwork automotive aftermarket

Other Posts

Never Stop Learning

With so much internet-based training content available, it’s never been easier to expand your knowledge base.

Continuing Education
Welcome To 2035 – What Things Might Look Like

The future is what we make it. We need to start addressing technology now so 2035 becomes a bright future.

Future of Transportation
Seems Like Everybody’s Talkin’ About Electric Vehicles

Not only are people talking about EVs, but according to the latest U.S. sales figures, they’re also buying them.

Tesla Electric Vehicle
Still Time To Nominate Someone For Counter Pro Of The Year

We’ll be accepting nominations through Aug. 1.