Our strategy is designed to deliver sustainable, profitable growth that benefits all our stakeholders by ensuring we have the agility and resources to identify and respond to opportunities in our markets. We do this by focusing on four key strategic pillars: sales and marketing, engineering, manufacturing, and support services.
These pillars are underpinned by our people and culture, and our commitment to sustainability, including our Net Zero commitment.
Sales & Marketing
Supporting our customers' success all round the world
- Ensuring we can provide quality, quick, global customer support.
- Maximising our opportunities in high-growth markets, such as semiconductors and electronics manufacturing.
- More integration with third-party software, to open up new markets.
- Moving into close-adjacent markets with our nonsubstitutional products, such as enclosed encoders for machine tools.
- Exceeded our saled targets in all regions, with particularly strong growth in semiconductor and customer electronics markets.
- Made our Equator gauging system available for use with a range of third-party software.
- Recieved positive feedback from our long-standing machine and tool builder customers for the FORTiS range of enclosed encoders.
Provide quality products through cost-effective manufacturing
- Maintaining our quality standards.
- Responding to significant growth in demand.
- Improving our productivity to make better use of existing resources and maintain gross profit margins.
- Investing in our factories, to support long-term growth.
- 40% increase in productive hours, from a 19% increase in production labour and overheads expense.
- Maintained production costs at 35% of revenue, despite well-publicised cost increases for raw materials, components and labour.
- Maintained ‘safety stock' for certain critical components.
- Approved investment of around £64m to expand our site in Miskin, Wales. This will increase our global manufacturing floorspace by 55%.
Deliver innovative products and processes
- Completing our flagship product projects on time. These are products that either bring faster revenue benefits or are strategically important to the Group.
- Continuing to invest in new and disruptive technologies.
- Expanding our research teams, particularly in materials science, artificial intelligence and ASIC design.
- Launched the REVO ultrasonic probe, the latest addition to our market-leading range of products for CMMs (see page 29 for more detail).
- Launched the second generation of our innovative NC4+ Blue non-contact tool setter.
- Four new ASICs now in full production, and used in both our Industrial Metrology and Position Measurement product groups.
- Redesigned current products when certain components weren't available due to supply chain disruption.
Enabling an efficient, intelligent and responsible business
- Working as business partners to make sure that other parts of the business have the information and advice they need to make the right strategic decisions.
- Improving our IT systems to help our people to work more efficiently.
- Helping the Group meet its legal, regulatory and ethical obligations.
- Helping the Group manage its risks, to make the best use of our risk appetite and focus on sustainable growth.
- Launched ‘Responsible Renishaw', our global umbrella brand for compliance matters, including a central policy portal helping our people to find the information they need more easily.
- Provided virtual training on core IT topics and applications, helping people to work more efficiently and make better use of data.
- Created a Sustainability Committee to help deliver our Net Zero commitment and sustainability responsibilities in an efficient way. The Committee brings together representatives from across the business to work on our priorities.
People and culture
Providing a great place to work, grow and contribute, to drive Renishaw's success
- Modernising our pay and benefits, to attract, retain, and motivate our people.
- Supporting career progression, to foster growth for our people.
- Simplifying our performance review process, to encourage better engagement and help people understand how their contributions support our strategy.
- Creating an inclusive culture with a diverse workforce in an environment that supports our people's wellbeing.
- Launched our global salary benchmarking exercise in the UK. We expect to complete this across the rest of the Group by December 2022.
- Formed a career progression working group and started developing a new job grading framework.
- Introduced a simpler way for people to review their performance with their managers, with clearer overall gradings.
- Introduced more Diversity & Inclusion Champions across the Group, and approved an Equality, Diversity & Inclusion Lead role.
Our sustainability commitment
As a responsible business, it's up to us to act in a sustainable way so that we can achieve long-term revenue and profit growth while improving the social and physical environments that we work in.
This year we agreed a new Net Zero commitment to reduce our GHG emissions by 90% compared to our FY2020 baseline. We have committed to achieving this reduction in our Scope 1 and 2 emissions by 2028 and in our Scope 3 emissions by 2050 at the latest. We will address the remaining 10% of emissions through credible carbon offsetting and removal programmes.
While this commitment is new, we've been working to reduce our emissions for many years. Our largest manufacturing sites already have solar panels installed, for example, and we self-generate around 10% of the electricity we use.
As part of our broader commitment to sustainability, we also know we need to treat people fairly. As an employer, we want to ensure we create a working environment where everyone feels included. Our aim is to promote a culture that embraces our people's differences and our new Equality, Diversity and Inclusion Policy supports this. We're also committed to ensuring that the human rights of people working within our supply chains are protected. We do this by risk-assessing our suppliers and working with them to understand how they mitigate the risk of modern slavery and other rights related issues.
This year we've selected three of the UN's Sustainable Development Goals (SDGs) as being the most relevant to our business, and where we believe we can make the greatest impact. Click here to find out more.