How 3M Makes Money

Safety and industrial products generate the most sales

Reviewed by Somer AndersonReviewed by Somer Anderson

3M Co. (MMM) is a diversified global company that manufactures products, such as adhesives, building materials, insulation, lubricants, tools, medical supplies, electronics components, cleaning supplies, and office supplies. Its products are sold under brand names including Scotch, Post-it, Nexcare, ACE, and Command. The company distributes its products through wholesalers, retailers, and online.

Key Takeaways

• 3M manufactures and distributes products, including building materials, adhesives, and medical and home cleaning supplies.
• The company’s Safety and Industrial segment generates the most sales and profits.
• In 2024, 3M completed the planned spin-off of its healthcare business, Solventum Corporation.

3M’s Industry

A technology company, 3M has a market share in the Safety and Industrial, Transportation and Electronics, Health Care, and Consumer sectors.3M faces global competition from companies in various industries, including transportation, healthcare, electronics, and consumer goods. Its main competitors include General Electric Co. (GE), Emerson Electric Co. (EMR), Honeywell International Inc. (HON), Owens Corning Inc. (OC), Avery Dennison Corp. (AVY), and Danaher Corp. (DHR).

• Safety and Industrial: Generates revenue through products related to workplace safety and industrial work settings. Some of those products include industrial abrasives, autobody repair solutions, electrical products and materials for construction and maintenance, structural adhesives and tapes, and various personal protective equipment.
• Transportation and Electronics: Offers products related to the transportation industry and certain electronics applications. Those products include attachment tapes, films, sound and temperature management for vehicles, and large-format graphic films for advertising.
• Health Care: Makes and sells various health-related products and solutions, including food safety indicator solutions, healthcare procedure coding and reimbursement software, dentistry solutions, filtration and purification systems, and skin care.
• Consumer: Offers products related to home maintenance and do-it-yourself (DIY) home improvement projects and office supplies. These include home cleaning products, retail abrasives, paint accessories, braces, supports, and consumer respirators.

Important

On Apr. 1, 2024, 3M completed the planned spin-off of its healthcare business, launching Solventum Corporation as an independent company, listed on the NYSE as SOLV.

3M’s Financials

In Feb. 2024, 3M released its financial results for its 2023 fiscal year (FY), ending Dec. 31, 2023. Net income decreased by 221% year over year (YOY) to -$6.99 billion. Net sales, the company’s revenue metric, was $32.7.0 billion, down 4.5% since 2022. Total operating income, which 3M uses to measure profit in its business segments, decreased 239.6% YOY to -$9.13 billion.

The decrease in performance can be partly attributed to 3M’s settlement of key litigations around faulty earplugs and the use of “forever chemicals.” In August 2023, 3M agreed to pay $6.0 billion to resolve the litigation of Combat Arms Earplugs from 2023 to 2029. The company also faces continuing litigation related to PFAS chemicals including perfluorooctane sulfonate (“PFOS”) and perfluorooctanoic acid (“PFOA”), used for various industrial purposes.

Note

3M will discontinue manufacturing all fluoropolymers, fluorinated fluids, and PFAS-based additive products by 2025.

History and Leadership

In 1902, Dr. J. Danley Budd, Henry. S. Bryan, William A. McGonagle, John Dwan, and Hermon W. Cable founded Minnesota Mining and Manufacturing Company. The 3M™ Three-M-ite™ Abrasive Cloth became 3M’s first product in 1914 before the company became synonymous with Scotch Tape and masking tape. In 1980, 3M introduced Post-it® Notes, an office staple. As of 2024, 3M manufactures 60,000 products, supporting multiple sectors and industries.

William “Bill” Brown serves as the chief executive officer (CEO) of 3M in 2024. He is the former Chair of the Board and Chief Executive Officer of L3Harris Technologies.

Recent Developments

In 2023, 3M announced its plan to invest $146 million to advance capabilities in biopharma filtration technology. The investment includes facility and equipment improvements and the addition of 60 employees in its manufacturing facilities in Europe. The goal is to help its biotech customers innovate therapies to treat rheumatoid arthritis, multiple sclerosis, and certain cancers.

From 2023 through 2025, 3M will structurally reorganize to reduce the size of its corporate center, simplify the supply chain, reduce management levels, align business go-to-market models to customers, and align manufacturing roles with production volumes.

Why Did 3M Begin as a Mining Company?

The founders of 3M first sought to mine for corundum, a mineral used to make sandpaper and grinding wheels. 

How Are PFAS or “Forever Chemicals” Used in 3M Products?

PFAS chemicals promote durability and water resistance and are found in products such as adhesives, cleaning supplies, vehicle batteries, fuel lines, and food packaging.

Where Are 3M Offices Located?

3M offices are located in the U.S., Germany, and Belgium.

The Bottom Line

3M manufactures products, such as adhesives and building materials, sold under brand names like Scotch, Post-it, Nexcare, ACE, and Command. The company was founded as a mining operation in 1902. As of 2024, 3M supports 60,000 products worldwide.

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