Innovation’s the key factor in firm’s success

Renishaw, the West-based engineering firm which can trace its origins back to the project that gave us Concorde, is focused firmly on the future as it marks its first half century in business

THIS year, Gloucestershirebased Renishaw is celebrating its 50th Anniversary. The company was founded to commercialise the invention of a device that solved a dimensional measurement problem Rolls-Royce encoutered at it Filton plant at Bristol faced in 1972 when manufacturing the Olympus engines that powered the supersonic Concorde aircraft.

(Sir) David McMurtry, now executive chairman of Renishaw, was at that time assistant chief of engine design for all Rolls-Royce engines manufactured at Filton. The problem was so urgent that David himself dealt with the issue over a weekend. At his home in Alveston, he designed and built a prototype measurement device which resolved an issue faced by manufacturers worldwide.

Rolls-Royce took out a patent on David’s original design, which was filed on September 21, 1972, with him acknowledged as the inventor. Around this time, he discussed the matter with John Deer, now non-executive deputy chairman at Renishaw, who was also working at Rolls-Royce, on power plant aerodynamics. John had a background of machine shop engineering but wanted to have his own business.

They both saw the wider commercial opportunities for the invention and Rolls-Royce agreed to licence the patent to them but would only do so if they had a limited liability company. They therefore purchased an ‘off-the-shelf’ company and on April 4, 1973, the first Renishaw company, Renishaw Electrical Ltd., was registered.

David continued to design the early products in Wotton-under-Edge when he moved there in 1973. However, following the receipt of Renishaw Electrical’s first commercial order, production moved to John’s home in Chepstow, South Wales, where the garage was the machine shop, assembly took place in a spare bedroom and administration at the dining room table. In 1976 the company purchased its first commercial premises, a former ice-cream factory in Wotton. At that time the company had just nine employees but was already supplying most of the world’s manufacturers of precision measuring machines.

Global impact

Today Renishaw plc is a FTSE 250 listed business with around 5,200 employees globally in 36 countries, including 3,300 staff at its sites in Gloucestershire and South Wales.

Over the past 50 years, Renishaw’s products have revolutionised key aspects of component manufacturing and scientific research, contributing to the ability to make the high performing, precision products that we use in our daily lives. From the manufacture of aircraft, cars, smartphones, EV batteries and solar panels, to brain surgery and dentistry, there is barely an industry that does not in some way benefit from the company’s ongoing inventions, most of which are designed, developed and manufactured here in the West Country.

In a world where it is increasingly vital for businesses to reduce their environmental impacts, Renishaw’s products are helping customers to be more sustainable, by reducing their energy consumption and waste, and by helping them to research and manufacture products that are more efficient in use and therefore use less energy.

Whilst Renishaw’s contribution to our world may not always be apparent, often due to commercial confidentialities, its impact can be seen all around us, from projects below ground to space exploration. The precision fit concrete panels for the Channel Tunnel were inspected using Renishaw measurement systems, the Terracotta Warriors in China were investigated using the company’s analytical equipment, and some of the European Space Agency’s satellites use Renishaw encoders to ensure transmitters and receivers are precisely aligned.

Commitment to the future

Whilst this year we are celebrating our past achievements, we are also focused on ensuring the continuing success of the business through investments in people, products and property, all underpinned by our commitments to be a more sustainable organisation.

Last summer we announced a significant investment at our Miskin site in South Wales, to increase manufacturing capacity and to help meet our Net Zero emissions targets. A spend of around £65 million will see 400,000 sq ft of additional low carbon buildings created at the 193-acre site to the west of Cardiff, consisting of two new production halls and an employee welfare facility. The existing production halls will also be refurbished to reduce their greenhouse gas (GHG) emissions.

This significant investment will almost double the footprint of the site which we acquired in 2011 and currently accommodates around 700 employees. The construction is being completed in phases, with work having been underway since July 2022 to build the first of the new halls (189,000 ft2), the welfare facility and supporting infrastructure. The basic shell for the second new production hall (196,000 ft2 will be built by December 2024 and will be fully constructed when business levels require its use.

The additional capacity will allow for increases to machining operations and the assembly of products already built at the site, including Renishaw’s worldleading metal additive manufacturing (3D printing) machines.

Future talent

A key aspect of investing for future success lies in our ability to retain and recruit skilled individuals. At Renishaw we have a strong track record of growing our own talent pool, having started our first apprenticeship programme in 1979 and recruiting apprentices every year since that time, even during business downturns. Our 50th year will again see a significant investment in future talent, with the aim to recruit around 100 graduates and 60 apprentices.

Our award-winning apprenticeship scheme allows apprentices to gain nationally recognised qualifications up to degree level, alongside on-the-job experience.

The range of schemes allow apprentices to join at different educational levels, from Level 3 up to Level 6, across a range of disciplines from engineering, manufacturing and software engineer- ing to non-engineering apprenticeships such as commercial, IT support, surveying, electrician and building maintenance. Applications for this year’s intake close on February 10.

However, the hard work starts years before a young person will ever be employed by us, with an education outreach programme in the South West and South Wales run by four employees who are dedicated to engagement with both primary and secondary schools.

Following the success of a dedicated education centre at our Miskin site, this year we will also be formally opening a STEM education centre at our HQ site near Wotton-under-Edge, which will support students in the region with their science, technology, engineering and maths studies.

Sustainability targets

Last year Renishaw announced that in addition to its commitment to achieve a science-based Net Zero GHG emissions target for all its business operations by 2050, it would also achieve Net Zero for Scopes 1 and 2 emissions by 2028. Both these targets will be validated and monitored by the globally respected body, the Science Based Target initiative (SBTi).

A vital consideration for the new construction programme at the Miskin site, is to ensure that this new target can be achieved. Therefore, the new facilities will be built with the latest technologies and materials to ensure that they will be Net Zero in operation, and the build also aims to minimise the amount of embodied carbon within the building materials used in construction.

By the end of 2024, we also aim to have refurbished the two existing production halls at Miskin to reduce their carbon emissions including new energy-efficient cladding and the replacement of existing heating systems.

These sustainability investments complement initiatives at Renishaw’s other global sites, including large investments in roof-mounted solar panels, new car port solar panels, EV charging points to support our move to ultra-low emission (ULEV) fleet vehicles and new ULEV salary sacrifice scheme for our employees, and feasibility studies to assess the viability of wind power.