3M has unveiled plans to invest $3.5 billion in research and development from 2025 to 2027, aiming to rejuvenate growth and innovation across its diverse product lines, with a vision of launching 1,000 new products over the next three years.
Renewed R&D focus: Approximately one-third of the R&D budget will enhance technologies supporting 3M's R&D infrastructure, while the remaining two-thirds will focus on product development for commercial applications. The company says it is committed to reinvigorating its innovation pipeline and addressing past imbalances in its R&D approach.
Difficult times: The company faced several challenges in recent years, including supply chain disruptions, the COVID-19 pandemic, and the planned discontinuation of per- and polyfluoroalkyl substances (PFAS) by 2026 – factors which have diverted attention from R&D and corporate growth initiatives. A disproportionate investment in its healthcare segment, which was spun off into the independent company Solventum in 2024, had impacted focus on core growth areas.
Path to prosperity: 3M says its product development strategy will target sectors where it already has a significant presence, including aerospace, automotive, electronics, home cleaning, industrial automation, augmented and virtual reality, energy, data centers, home improvement, safety, and semiconductors. By leveraging differentiated technologies and unique channel access in these areas, the company aims to shift its focus to high-growth, high-return markets.
Focused on the financials: The planned hike in R&D investment is part of a broader financial strategy 3M is pursuing. Over the next three years, it plans to allocate approximately $3 billion to capital expenditure and return about $10 billion to shareholders.
