R&D in the Manufacturing Industry

Why is R&D important in the Manufacturing industry?

In 2020, manufacturers benefitted from having the highest average R&D claim value of any industry at just over £100,000. This figure is testament of the sectors ongoing strive for better products, lower costs, and a reduced carbon footprint. The industry is extremely technical and therefore holds massive potential for further research and development in the coming years.

Whenever the term manufacturing is used, quite often the first thing that comes to mind is an industrial line building some form of electronic product or gadget. When discussing R&D, it’s vital that all subsectors receive their mention. For example, the food and drink sector makes up a large percentage of this; and is quite often an area of the industry that neglects their ability to claim R&D tax credits. If a business is trying out new recipes, combining different ingredients and striving to stay ahead of their competition then there’s a good chance some level of R&D has been undertaken.

What qualifies for R&D in the Manufacturing industry?

As the manufacturing industry is ever changing, with new products constantly being developed, redesigned and improved, the scope for an R&D claim is pretty broad. Below are some examples of what could qualify, but there are plenty more beyond these:

  • Innovative product development
  • Improvement of existing products
  • Design, testing and trialling of prototypes
  • Integration of new tech on old systems
  • Alterations to the process to reduce environmental impact
  • Integration of new materials
  • Streamlining of the manufacturing process