PRODUCT DEVELOPMENT

Part of our Higher Standard 2025 Strategy includes building value for our customers through innovative product solutions. As a leader in welding technology and safety, we have identified several key areas to make a positive impact, including automation products and enhanced software solutions. At the core of our product offerings, we keep our customers’ sustainability efforts in mind by seeking opportunities to improve product energy efficiency, safety, logistics, and reductions in packaging.

New Product Vitality Index

We measure our innovation and sales success through our Vitality Index score. In 2021, we invested $56 million in R&D spend, which helped us launch over 80 new product families and increase our Vitality Index to 33% from 31% in 2020. We also increased our Vitality Index for equipment systems to 57% from 54%. The Vitality Index represents the percentage of 2021 sales from new products launched in the last five years, excluding the International Welding segment and customized automation sales.