Our strategy
Our strategy ensures we have the agility and resources to identify and respond to opportunities in our markets by focusing on four key strategic pillars: sales and marketing, engineering, manufacturing, and corporate services.
These pillars are underpinned by our people and culture and our sustainability approach, including our commitment to Net Zero.
Sales & Marketing
Supporting our customers' success all round the world
Our priorities
- Ensure that we provide expert and quick customer support, aligning our sales and support teams with the locations where our customers are located.
- Maximise our opportunities in high-growth markets, such as semiconductor manufacturing equipment, robotics and additive manufacturing (AM).
- Expand our sales of shop-floor metrology systems, both direct to key end users and through distributors.
- Enter close-adjacent markets with non-substitutional new products, such as enclosed encoders for machine tools.
Our progress
- Added new technical support facilities in India to support customers as they increase their supply chain security.
- Built a growing list of customers using multiple AM machines in series production applications.
- Achieved good growth of our REVO 5-axis co-ordinate measuring machine (CMM) systems into the automotive, aerospace and consumer electronics sectors.
- More than 100 machine tool builders tested FORTiS enclosed encoders, and FORTiS incorporated into regular production with several early adopters.
Manufacturing
Deliver quality products through cost-effective manufacturing
Our priorities
- Maintain our quality standards.
- Ensure we have the capacity and inventory to respond to changes in demand.
- Enhance our productivity to make better use of existing resources and maintain gross profit margins.
- Invest in our factory capacity to support our long-term growth.
Our progress
- Rebuilt inventory levels following recent supply chain disruption. Bringing delivery lead times down to target levels and building resilience in readiness for future demand increases.
- Some inventory levels are currently above target and will be progressively reduced for certain components over the next year, while retaining resilience for future demand increases.
- Implemented automation projects in high-volume assembly and machining operations, reducing direct labour requirements and quality costs.
- Started construction of additional factory space at Miskin, Wales, with the first hall due to complete in December 2023. This will help us expand manufacturing capacity in our growing CMM systems, enclosed encoder and AM products.
Engineering
Deliver innovative products and processes
Our priorities
- Complete our flagship product development projects on time. These are the products that either bring faster revenue benefits or are strategically important to us.
- Continue to invest in new and disruptive technologies.
- Introduce non-substitutional new products to enable diversification into close-adjacent markets.
- Expand our research teams in key areas, such as materials science, artificial intelligence, and application specific integrated circuit (ASIC) design.
Our progress
- Launched new RMI-QE radio transmission system for our market-leading machine tool probing range.
- Launched Renishaw Central, a new smart factory software platform, which has already proven its value in our own factories.
- Introduced our new Industrial Automation business, based on novel techniques researched by our Group Technology team.
- Continued to invest in growing our research teams, increasing engineering headcount by 4% to pursue longterm growth opportunities.
- Expanded ASIC design team to develop devices to enhance the performance of key products.
Corporate Services
Enabling an efficient, intelligent and responsible business
Our priorities
- Ensure that we meet our legal, ethical and regulatory obligations.
- Improve our IT systems and infrastructure to help our people work more efficiently, and to enhance our cyber security.
- Embed sustainability into our business strategy and operations.
- Manage risks effectively within our risk appetite, focusing on sustainable growth.
Our progress
- Strengthened ‘Responsible Renishaw', our global compliance brand, with consolidation of our policies into a new Code of Conduct.
- Planned a phased implementation of Microsoft Dynamics 365 to streamline customer-facing and back office business processes, with initial deployments due in FY2024.
- Scoped a new Global Supplier Compliance Portal as a single source of information for supplier performance in areas such as modern slavery, product safety and sustainability.
People and culture
Providing a great place to work, grow and contribute
Our priorities
- Ensure that we offer competitive pay and benefits, to attract, retain and motivate our people.
- Support career progression to foster growth.
- Simplify our performance review process, to encourage better engagement and help people understand how their contributions support our strategy.
- Nurture an inclusive culture with a diverse workforce in an environment that supports our people's wellbeing.
Our progress
- Conducted global salary benchmarking and increased global average pay by 10.2%. This helped to reduce voluntary employee turnover from 10.7% to 6.8% this year.
- Introduced a new job architecture and started to develop competency frameworks to support career progression.
- Embedded a simpler annual and mid-year performance review process.
- Appointed an Equality, Diversity and Inclusion (EDI) Lead and strengthened our EDI champions network, focus groups and awareness activities.
- Strengthened our wellbeing programme with internal training, mental health first aiders and external advice, support and information.
Our sustainability approach
Support the transition to a sustainable furture
Our priorities
- Make our business Net Zero by no later than 2050.
- Reduce emissions relating to our business activities and purchased energy (Scope 1 and 2) to Net Zero by 2028.
- Reduce emissions relating to our supply chain and the distribution and use of our products (Scope 3) by 50% by 2030.
- Mitigate climate-related risks and capitalise on climaterelated opportunities.
- Help our customers reduce their carbon emissions.
- Contribute to our broader commitment to sustainability by supporting the UN Sustainable Development Goals (UN SDGs) 8, 12 and 13
Our progress
- Reduced Scope 1 and 2 emissions by 21% this year.
- Invested £4.2m in infrastructure improvements related to Net Zero.
- Introduced our ULEV scheme in the UK, with more than 150 employees ordering electric vehicles (EVs) through this programme, with similar schemes to be launched elsewhere in the Group in coming years.
- Worked towards fully quantifying our Scope 3 emissions and developed our climate transition plan.
- Assessed climate-related transition and physical risks and opportunities.
- Created various strategy and working groups who have identified projects and strategic aims contributing to UN SDGs 8, 12 and 13.
Figures as at date of 2023 Annual Report.