About 4 years ago, some 19 percent of Kennametal’s total sales were from new products. New products are defined by the industry as 5 years old or less and offering the customer a minimum 20 percent productivity improvement.
“I will tell you that 19 percent is far from world class,” says Carlos Cardoso, president and CEO. “We instituted the product development component of KVBS and our percentage of new product sales began to rise steadily. For the past three years we have comfortably met our target of 40 percent, and in fiscal year 2006, we were at 46 percent of sales from new products. The improvement is ongoing and sustainable."