The Rising Influence of Rising Affluence

[DewDiligence]

Lewis Lehr, 3M visionary, dies at 95:

http://www.wsj.com/articles/lewis-lehr-spurred-3m-into-medical-supplies-and-china-1470347194

As chief executive of 3M Co. from 1979 to 1986, Lewis Lehr pushed the company deeper into medical supplies, established an early presence in China and strove to keep a growing bureaucracy from smothering innovation.

…In the early 1940s, he studied chemical engineering at the University of Nebraska… One of his mentors there suggested he apply for a job at 3M in St. Paul. Mr. Lehr…drove to the small town of St. Paul, Neb. to apply—only to find out 3M was in Minnesota. Once that was cleared up, he embarked on a 39-year career [LOL].

…As he moved up the ranks, Mr. Lehr was enthusiastic about 3M’s efforts to develop surgical “drapes,” made of nonwoven fabric and plastic film, used to wall off body parts during surgery to prevent infections. When he learned 3M was thinking about junking that business, Mr. Lehr offered to buy it. That caught the attention of his superiors, who decided to develop the surgical-supplies business after all.

3M went on to build a wide-ranging health-care business... Health care in this year’s second quarter chipped in about a quarter of 3M’s operating profit. Operating profit margins in health care were nearly 33%, compared with 24% for the whole company.

Mr. Lehr became CEO as China was starting a gradual opening to foreign businesses. After years courting the Chinese, 3M in 1983 became the first foreign company allowed to set up a wholly owned business there rather than a joint venture. Today, China is one of 3M’s largest markets and a major center of its manufacturing and research.

3M was also in the pharma business, but that unit was sold in 2006.