Our approach to technology and innovation
Technology and innovation are at the core of what the talented people at Axalta focus on each day. In fact, “We innovate with purpose” is one of our corporate values. Innovation is critical to our business success, as our customers are increasingly seeking additional benefits from our products to help them achieve their own sustainability and business objectives. Being a leader in technology and innovation means we can provide the best possible products to our customers, be good environmental stewards, attract the brightest talent, and continue to expand our business and value for shareholders.
Our technology strategy
Product research and development efforts address issues and challenges our customers face today as well as generate innovations that will lead the industry in the development of next-generation coatings. Axalta R&D focuses on multiple core technology competencies, including resin synthesis and processing, color science, dispersion, analytical science, network formation, rheology, coating application, and corrosion science. Fundamental understanding in these areas is then implemented in the formulation of new undercoat, color basecoat, and top or clearcoat platforms.
Our technology strategy is focused on providing durability, protection, and color across the products and services we provide to our customers. Those benefits also translate into how our coatings provide customers with ways to increase their performance and productivity, both when applying our coatings and by enabling the materials protected by our coatings to last longer. When our customers’ products last longer, the demand on natural resources to produce replacements is reduced.
We are also a leader in developing products with reduced environmental and toxicity footprints, such as waterborne liquid coatings, low-to-zero VOC- and HAPs-containing liquid and powder coatings, and tin- and formaldehyde-free coatings. Our approach is dictated in part by both existing and emerging legislative controls on hazardous materials as well as our own desire to produce safer and more environmentally acceptable coatings. For more information about the benefits of our products for our customers, please see our product case studies.
We use an internal Vitality Index to gauge the percent of sales gained from new products. Over the course of the past four years, we have seen year-over-year increases, reflecting the introduction of effective new product offerings for our customers. This measure correlates with our sharp focus on technology and innovation that began to occur after Axalta became an independent company in 2013.
Axalta’s management of technology
Technology development begins with the voice of the customer. Their needs for product enhancements and for new coating products and systems initiates research and development at Axalta. Our management approach to technology and innovation begins with a multi-stage “gate” process to manage all global laboratory projects from inception to commercialization, and it is directly linked to our business management processes. This investment in a global, cross-functional approach for new product developments and existing product modifications is improving the value of our technology portfolio. We also manage our technology portfolio through patents, trademarks, and confidential disclosure agreements with suppliers and customers. Through the end of 2015, Axalta had more than 600 granted patents and 280 pending patent applications.
We also seek to keep our employees engaged in technology and innovation. Axalta holds a global biannual Technology Symposium, where more than 100 selected scientists, chemists, engineers, project managers, and technology and business leaders are invited to participate in workshops to bring forward new ideas and business proposals. Guest speakers provide a perspective on commercial trends and application needs.
Investing in technology
On average, Axalta directs about 4 percent of sales toward technology developments, which totaled more than $165 million during 2015. Our technology and innovation group is led by our Chief Technology Officer and supported by scientists and technicians located in four principal technology centers. A new Global Innovation Center is under construction at The Navy Yard in Philadelphia, PA with move in scheduled for late 2017. Three regional research and development centers are located in Mt. Clemens, MI to support our business in the Americas; Wuppertal, Germany covering Europe, the Middle East and Africa; and Shanghai, China covering Asia-Pacific. The four principal centers and Axalta’s more than 30 smaller laboratories across the globe are staffed by more than 1,300 scientists and technicians.
UNIVERSITY RELATIONS
Axalta invests in strategic partnerships with several universities and technology development institutes for projects aligned with our interests in color, appearance, coatings application, and delivering anti-corrosion performance without the use of hazardous materials. Each year our scientists participate in more than 20 academic and industry association technical committees and attend more than 50 conferences. During 2014 and 2015, Axalta scientists delivered more than 25 papers and technical presentations and contributed to a myriad of industry trade and general news publications to offer professional insights into many aspects of the coatings industry. We believe in external engagement to source new ideas for breakthrough technologies and manufacturing processes.
Axalta undertakes collaborative research at more than a dozen universities and institutions in Asia, Europe, and the Americas on topics ranging from applications of coatings to fundamental studies of corrosion protection, color, and polymerization, as polymers are the chemical backbones of many of our coatings.
In 2013, Axalta renewed a long-term collaborative relationship with the Chemistry Department of the University of Pennsylvania by sponsoring the Axalta Distinguished Lecture Series. Speakers have included leaders in their scientific fields.
In 2014, Axalta started a two-year academic research program with Shanghai Jiaotong University, one of China’s most prestigious universities. The work will focus on detecting microscale compositional differences in an overall homogenous coating film, why they form, and how they impact our customers through durability and appearance performance.