The industries engaging in innovation the least
Posted by: electime 2nd December 2024
With the latest government figures showing construction ranks among the worst sectors for insolvencies, new research has revealed that a lack of innovation could be contributing to this decline.
Innovation has been shown to play a huge role in increasing business profitability. In fact, government data shows that innovative businesses generate nearly two-thirds (60.5 per cent) of their turnover as a direct result of introducing new products, services, or processes.
The lead generation experts at Sopro have analysed government data to reveal that nearly three-quarters of construction businesses avoid innovation, ranking among the least innovative sectors in the UK.
The industries engaging in innovation the least:
| Rank | Industry | Companies Engaging in Innovation
(per cent) |
| 1 | Real estate activities | 23.2 |
| 2 | Accommodation and Food Service Activities | 24.6 |
| 3 | Transportation (by land, water and air), warehousing and storage | 27.2 |
| 4 | Construction | 27.7 |
| 5 | Motion picture, video and tv programme production/programming & broadcasting | 29.7 |
| 6 | Retail trade, except of motor vehicles and motorcycles | 30.1 |
| 7 | Post and courier activities | 33.1 |
| 8 | Mining and Quarrying | 34.3 |
| 9 | Electricity, gas & water supply, waste management | 36.2 |
| 10 | Financial and Insurance Activities | 37.3 |
Only slightly more than one quarter (27.7 per cent) of construction businesses engage in innovation. The industry faces several obstacles that make innovation challenging, such as a reliance on manual labour and traditional techniques.
The purchase of and training for the use of new equipment and technologies are limited in the sector, likely in part because they are expensive and time-consuming.
Rob Harlow, Chief Innovation Officer at Sopro, comments on the impact of innovation in business and offers his tips:
“Innovation is essential to long-term success in any industry, offering significant improvements to problem-solving, service-offering, and overall business performance. Openness to implementing new tactics and processes allows companies to adapt to market changes quickly, capitalise on emerging trends, and gain a crucial competitive edge.
“This can be through creating a unique product or service that will attract more customers or by carving a new niche in your industry to meet unfulfilled customer needs. You can do this by collaborating with your customers to collect feedback and monitoring industry trends to inform your innovations.
“Alternatively, innovation can take the form of changing the way you engage potential new customers and generate business. For example, breaking out of your old marketing habits and implementing a multi-channel approach to prospecting, as well as sophisticated lead generation and nurturing strategies, can help scale your business.
“While adjusting to new ways of operating might be difficult, it’s worth remembering that one of the biggest reasons for losing deals is choosing to stick with the status quo. Meanwhile, embracing innovation can drive your business forward and put you at the forefront of your sector.”
Is this of interest to you and your readers? You can view the full research here and download graphics to use alongside the piece here.
