SYS-CON MEDIA Authors: Noel Wurst, Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente

News Feed Item

UL Releases Second Annual Global Study: "The Product Mindset" 2012

BANGALORE, November 29, 2012 /PRNewswire/ --

UL Releases Second Annual Global Study: "The Product Mindset" 2012

Findings Reveal a Sharp Decline in Overall Optimism, Ever More Transparent Supply Chains, and a Focus on Quality

UL (Underwriters Laboratories), a world leader in advancing safety, announced today the 2012 findings of its annual global study, The Product Mindset, which examines manufacturer and consumer perceptions about how products are made, sold, bought and consumed. This year's findings, culled from interviews with manufacturers and consumers in the U.S., China, Germany and India, show a steep decline in optimism and increased expectations around quality, safety and the environment. These expectations are driving more complex supply chain dynamics, where traceability and sourcing are the tools manufacturers are leveraging to help deliver reliable, cost effective products that consumers are demanding.

"The volatility in today's world is causing companies and people to look at the products they make and consume with more scrutiny than ever before. We are seeing manufacturers showcase aspects of their supply chain as consumers demand more transparency. Where a product's made, how it's made and what's in it are paramount," said Keith Williams, UL CEO.

The study reveals that product safety remains fundamental, and the environmental orientation of a manufacturer's operations and their product features are growing in importance. Specifically, the study highlights the growing concerns for the origins of manufactured products including where their components and raw materials are sourced.

"It is clear from this year's report that supply chain issues are top-of-mind for global manufacturers, but also in the line of sight of consumers in both developed and emerging economies. The report strongly suggests that these trends will accelerate in the coming years as manufacturers strive to meet consumer demand for increased quality and safety in the things they purchase and use," stated Clyde Kofman, UL Chief Strategy Officer.

Key insights from the study include:

  • Manufacturers are strategically managing increasingly complex supply chains to improve operations and quality, and to reduce costs. As a result, global sourcing is likely to expand to new countries in the coming years.
  • Consumers are becoming increasingly sophisticated about global supply chain issues including  where products and their components are made and whether global manufacturers and their suppliers are providing ethical working environments for employees. Furthermore, manufacturers are noting increased pressure for transparency related to product, component and raw material sourcing.  
  • Manufacturers believe that product safety is increasing in importance to consumers, and delivering it is critical to their business success.
  • Most consumers do not believe manufacturers use the best possible raw materials, ingredients or components in their products.
  • Manufacturers in both developed and emerging nations have a significantly more favourable opinion about the quality of materials sourced from developed markets than those from emerging markets.

Highlighted Findings from UL's 2012 Product Mindset  global report

Manufacturers feel the pressure from an increasingly complex, global supply chain 

  • Sourcing is becoming more global, with 46% of manufacturers increasing their sourcing from other countries over the next five years. Seventy-nine percent of those manufacturers note they will add additional countries to their roster versus replacing existing current sources.
  • Forty-three percent of manufacturers are not highly satisfied with their ability to expand into new markets.
  • Seventy-six percent of manufacturers believe global sourcing is a means to improve product quality; a 19 percent increase from what manufacturers noted last year, reflecting manufacturers' need to enhance competitiveness in a volatile and financially challenged global marketplace.
  • Only 30 percent of consumers strongly believe manufacturers use the best possible ingredients, raw materials or components in their products.
  • Fifty-seven percent of consumers are aware of which country the products they purchase are manufactured in; yet, 62 percent of consumers believe it is more important to know where a product's parts are from than where a product was assembled.
  • Over the next five years, 44 percent of consumers state that knowing where a product is from will become more important.
  • On average 48 percent of consumers feel manufacturers have not taken adequate steps to ensure both they and their suppliers are committed to workplace safety and the ethical and fair treatment of workers.
  • Less than one quarter (24 percent) of Chinese consumers and less than half of Indian consumers (40 percent) say manufacturers have not taken adequate steps to ensure that both they and their suppliers are committed to the ethical/fair treatment of workers and workplace safety compared with 65 percent of U.S. consumers and 64 percent of German consumers.

Quality remains a critical driver

  • Manufacturers rank quality as the number one most important driver of their success today and number one most important future driver.
  • Manufacturers think consumers care most about quality, with 38 percent stating it is the most important issue for consumers.
  • Ninety-one percent of manufacturers believe performance testing is becoming more important.
  • Consumers cite quality as the number one reason to explain why they select the products they buy.
  • Quality also ranks as the first or second most important type of product information for consumers across the food, building materials, high-tech and smart appliance categories.

Consumers are becoming more sophisticated

  • Consumers are able to demonstrate a nuanced understanding of product safety issues, picking online security as their number one high-tech safety concern, while selecting toxic emissions/indoor air pollution as the number one concern for home building materials.
  • Consumers prioritise product safety for products that are in or surrounding their bodies due to the immediate impact to their health or exposure over extended periods of time. Consumers rank product safety as most important to fresh (29 percent) and processed foods (27 percent) and home building materials (23 percent) versus high tech (10 percent) and smart appliances (9 percent). Product safety is also the information consumers most want when considering purchasing food or home building materials, but safety information is not among the top three types of information consumers want for consumer electronics or smart appliances.
  • Sixty-eight percent of manufacturers feel it is very important to clearly show consumers what ingredients/components are included in their products.

To obtain the full study with all key findings, visit:  www.ul.com/productmindset.

Methodology

Global quantitative research was conducted by an independent research firm during spring 2012. For the study, 1,201 consumers and 1,202 manufacturers in China, Germany, India and the United States were interviewed across an array of topics related to safety, performance, innovation and sustainability. Manufacturers were selected from the high technology/consumer electronics, food, smart appliances and building materials sectors and were interviewed by phone.  Consumers were interviewed through an online survey. 

About UL:

UL is a premier global independent safety science company with more than 118 years of history. Employing more than 10,000 professionals with customers in over 100 countries, UL has five distinct business units -- Product Safety, Environment, Life & Health, Knowledge Services, and Verification Services - to meet the expanding needs of our customers and to deliver on our public safety mission.  For more information on UL's family of companies and network of 95 laboratory, testing, and certification facilities, go to www.UL.com.

Primary Media Contact: Carla Slawson, [email protected], 1-847-6641812

Secondary Media Contact: Lavanya Chandra Bose, [email protected], 91-80-4138 4400


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...