Sub-theme: Efficient manufacturing
Spirax-Sarco is an industrial engineering business with steam at the heart of it. Steam is a high efficiency, mission-critical tool for diverse and important industries. Its properties make it the preferred choice in a variety of applications, including electrical power generation, humidification, sterilisation, cleaning and cooling/ refrigeration. In addition, the company provides electric thermal solutions, used in process heating and temperature management solutions, and fluid control technology through its Watson-Marlow business.
Impact Score: 28%
The use of steam in industrial processes results in less energy use, contributing to reduced GHG emissions. Steam accounts for 35%-50% of customers’ energy bill which makes it an important component of industrial decarbonisation. Spirax-Sarco’s technology reduces steam use by 5%-10%, a meaningful absolute saving when aggregated across the diverse range of industries the company services. The company is a clear market-leader with an unmatched range of product offerings.
Fundamental Quality: 78%
The company operates under a direct sales model and offers not just products but a deep expertise in applied engineering covering systems design, operations and maintenance. The sales engineers work closely with customers, collaborating to solve their productivity and energy efficiency challenges. This results in deep, long-term relationships and a sticky customer base. It also leads to above average margins and returns.
(per £1m invested in this company FY23)
- Manufacturing processes and supply-chain require water and energy
