The working definition dating from our first conference on HVM in 2002, was (such that):
A. Not just about linear ‘value-add’
B. A function of time-to-market
C. Intellectual property is above average
C1. Reinvestment in R&D is above average
D. Lower volume or even demo/prototyping stage;
E. New or unfamiliar processes and product types.
F. Typical sectors:
Electronics; printing & displays; medical devices & biotech; aerospace; automotive & motorsport; energy & environment (now called cleantech); materials and nanotechnology.
In January 2006, the IfM said in its report “Defining HVM” that it was:
1. Value is more than profit
1a. HVM companies create financial, strategic and social value
High Value Manufacturing (HVM) companies have strong financial performance but they also generate significant value externally. For example, at a strategic level HVM companies
may be significant contributors to national R&D investment. In terms of social impact,
2. HVM companies may be measured for environmental performance, sourcing policies or their community involvement.
3. There is no simple definition of high value manufacturing; e.g. manufacturing is not production and vice versa.