With the U.S. industries looking to focus shifting back manufacturing onshore, thinking about holistic IP strategies to protect such investments should be top of mind. For example, heavy manufacturing companies operate at the intersection of hardware, materials science, and automation—sectors where IP protection is critical for long-term competitive advantage.

Unlike software startups, industrial companies must protect processes, systems, and engineering breakthroughs that are often embedded in physical products and the plants that manufacture them. An unfocused IP strategy may lead to competitors reverse-engineering core innovations and processes for manufacturing them.

A heavy manufacturing IP strategy should include the following:

• Conduct regular IP audits – Identify differentiating proprietary technologies and to identify appropriate mechanisms to secure their protection.
• Use a hybrid patent + trade secret approach – Not all industrial innovations should be patented. Some may be more valuable as trade secrets.
• Secure global protections – Heavy manufacturing operates across borders; analyze IP protections extend beyond domestic markets in key manufacturing, sales and supply chain locations.
• Implement supply chain IP safeguards – Vendors and subcontractors should have clear IP agreements to prevent leakage of proprietary manufacturing processes.

Data shows that companies with strong IP portfolios consistently achieve higher valuations and exit multiples.

For industrial tech companies, IP is not just a legal necessity—it is a fundamental business asset that determines long-term success.