Crash-Test Dummies Are Getting Fatter Because We Are, Too

At first glance, Humanetics Innovative Solutions Inc. looks like it has a pretty sweet business model. The suburban Detroit company is the world’s largest maker of crash-test dummies, the steel-and-vinyl humanoids stuffed with electronics that gauge how a car crash could injure a human body. The company enjoys a global market share exceeding 70 percent, and its dummies can cost as much as $1 million apiece. Regulators in the U.S. and other countries effectively require Humanetics customers to buy at least some of its products.

With a setup like that, you might say, even a dummy could make a fortune. This makes Humanetics Chief Executive Officer Christopher O’Connor laugh, though for a different reason than you might think. He’d much rather discuss the implications of 3D printers and driverless cars than how Humanetics, or any dummy maker, turns a profit. “I’ve said to myself, if I had $10 million, I wouldn’t invest in this business,” O’Connor says. “I love it, but the reality is, you’re not going to make a ton of money. The margins are always going to be tight.”