Progressive, growth-oriented manufacturers tell their key distributors, and their salesforce / reps that they believe in “innovation.” Some set new product introduction (NPI) goals. Some mention this to their investors / analysts as a way to explain value proposition, performance, or margins.

Panduit and Innovation

Panduit has always been known as a progressive company. Being private enables them to think long-term, but the company still needs to perform.

I noticed on LinkedIn a posting from their CTO, Tom Kelly, which was also posted on their website / blog that I found interesting, and informative. I’m sharing it below and have some comments at the end.

Not Even Thirty‑year‑old Cable Cleats Escape Our Determination to Improve Our Solutions

“It’s easy for companies to claim innovation as part of their DNA. The real question is what that philosophy looks like in practice — especially in the field, where solutions are put to the test every day.

To answer that question, we (Dawn Leach from Panduit’s Marketing team) sat down with Panduit Chief Technology Officer, Tom Kelly. Having spent his career rising through the engineering ranks, Tom now oversees one of the industry’s most disciplined R&D organizations. He explained how Panduit’s culture of curiosity drives engineers to pursue both breakthrough technologies and continual improvements to the products customers rely on every day. Because in the field, Tom says, no product is ever truly finished, and new challenges become an opportunity to make it better.

Panduit, Taking the Long View on Innovation

While conventional R&D budgets fluctuate with the market, Panduit has for decades prioritized product and materials research.

• Panduit: Panduit consistently reinvests 4–5% of revenue into R&D. What’s behind that level of long-term commitment?
  • We proudly take the long view at Panduit. Our culture of innovation is baked into the foundation of the company. We don’t starve the engine and that consistency allows us to keep investing in the work that actually moves the needle for our customers.
• Panduit: That’s rare. What does that look like in practice?
  • It means staying committed to solving hard problems. For example, you can’t solve the thermal and power density challenges of a modern data center in a month or even a year. You have to be willing to keep pushing forward, to continue researching.

Continuous Improvement Across the Portfolio

At Panduit, products don’t age out of R&D. As applications, field conditions, and customer requirements change, the work continues.

• Panduit: There’s a perception that innovation happens only in new product categories. How does your philosophy of continuous improvement show up in day-to-day R&D?
  • We apply the same engineering rigor across the entire portfolio, from breakthrough solutions like the Panduit Fault Managed Power System to long-established products that customers rely on every day. If you look at something as foundational as our grounding lugs, you might think it’s a simple piece of metal. But we’re constantly refining it based on what we see in the field.

For example, we added cheat sheets to our grounding kits to ensure installers use the correct sealant and crimper. That change came directly from real-world installation challenges. It’s a small improvement, but it helps ensure the product performs exactly the way it’s intended.

• Panduit: So even the most familiar products are constantly evolving?
  • And I wouldn’t call anything “basic.” Innovation at Panduit is constant improvement. We might find a new polymer for our cable ties that handles the UV loads of a solar farm better, or we redesign a wiring duct to make installation two seconds faster.

In a project with 40,000 connections, those two seconds saved / connection (80,000 seconds or 22.22 hours or 3 man-days) are the difference between a project being on time or over budget. We don’t stop until the solution matches the reality of the field.

Behind innovation at Panduit

By creating a leadership-level technical career path for its talented engineers, Panduit encourages its most brilliant minds to remain focused on high-growth engineering challenges.

• Panduit: You have a deep bench of more than 250 R&D professionals. How do you bring a team that large together to determine where to focus their efforts?
  • We do that through a dedicated technical leadership path — our Distinguished Engineer program — which sits alongside our director and vice president levels. It recognizes that leadership in engineering doesn’t happen only through organizational management. Our Distinguished Engineers play a critical role in setting technical direction, mentoring teams, and helping guide some of our most complex development efforts. This allows us to keep our most experienced technical leaders closely connected to the work itself.
• Panduit: How does that influence the way innovation happens across the organization?
  • It creates a culture where expertise is valued and actively shared. We reinforce that through programs like our co-ops and internships, where students and early-career engineers work directly alongside experienced teams on real engineering challenges. That collaboration strengthens the entire organization, which allows new ideas to surface, encourages knowledge transfer across generations of engineers, and helps ensure that the expertise inside Panduit continues to grow and translate into practical solutions for our customers.

Take Aways

• It is interesting to note that Panduit spends 4-5% of REVENUES on R&D. The natural next question for the electrical industry is “How is that 4-5% allocated across electrical vs electronic?” or “Is it 4-5% by business segment (so is it 4-5% of electrical sales?)”
• Tom’s mention of “culture of curiosity” is critical to the success of a company, not solely for product development / enhancement. This is what differentiates companies and drives to customer and operational excellence. I also call it “intellectual curiosity.” Nowadays some call this “a desire to ‘think’.”
  • An element of this for product development is getting engineers into the field to talk to customers / end-users to understand needs and for them to envision what could be.
• Given the continuous product improvement, it’s important to support it with the appropriate training, sales enablement tools, and marketing … especially to the end-users to communicate the upgrade so that they 1) understand the ongoing investments and value and 2) the product does not devolve to being a commodity and its points of differentiation are communicated … and sold / bought. A difference that is not communicated is a lost opportunity.

So, next time you meet someone from Panduit ask, “what’s new today?”