In August 2024, 3M’s CEO Bill Brown identified a significant issue that was hindering the company’s growth – a decline in new product launches. This decline in innovation was a cause for concern as it meant that 3M was not keeping up with the pace of change in the market. Brown recognized that in order for 3M to remain competitive and drive growth, it needed to focus on increasing its output of new products.
Historically, 3M had been known for its innovative spirit, launching over 1,000 new products each year. However, by 2024, this number had dwindled to less than 170 new products. Brown understood that in order to discover the next breakthrough product, the company needed to invest in exploring new ideas and technologies.
Under Brown’s leadership, 3M made a strategic shift towards prioritizing new product launches. The results of this new focus were evident in 2025 when the company launched 284 new products, a 68% increase from the previous year. Looking ahead to 2026, 3M plans to further ramp up its innovation efforts with a target of 350 new product launches.
These new products have already begun to make a significant impact on 3M’s revenue. In 2025, products launched in the past five years accounted for 23% of total revenue, exceeding the company’s initial target. As 3M continues to introduce more new products, this percentage is expected to rise even further.
While the company has seen positive results from its increased focus on innovation, there are still challenges ahead. The macroeconomic environment remains uncertain, with potential trade tensions impacting demand in certain markets. Despite these risks, 3M is confident in its ability to drive growth through new product launches.
Looking towards the future, 3M is investing $3.5 billion in research and development over the next three years to support its innovation initiatives. This investment will help the company drive improved organic sales growth and continue to bring innovative products to market.
Overall, 3M’s renewed focus on innovation under Bill Brown’s leadership has been a success. By prioritizing new product launches, the company has been able to revitalize its growth engine and position itself for continued success in the years to come.
