Business Breakdowns Renishaw: The Precision Pioneers - [Business Breakdowns, EP.181]
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Sep 4, 2024 
Matt Tonge, a fund manager at Liontrust Asset Management, breaks down Renishaw, a leader in precision measurement and manufacturing. He explains how Renishaw serves as a vital supplier in sectors like semiconductors and robotics. The discussion highlights the company's unique revenue dynamics, the impact of cyclical trends, and the significance of R&D for future growth. Tonge also delves into Renishaw's founding story and its ongoing innovations, offering insights into the competitive landscape and the balance between short-term challenges and long-term vision.
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Renishaw's Expertise: Metrology
- Renishaw's expertise lies in metrology, the science of precise measurement crucial for high-tech manufacturing.
- They produce various products, from probes for CNC machines to standalone measuring systems and even medical devices.
Renishaw's Customer Base and Semiconductor Drag
- Renishaw's customer base spans diverse sectors like aerospace, automotive, and consumer electronics, with a notable concentration in semiconductor equipment manufacturing.
- The semiconductor segment, while crucial, has been a headwind due to its reliance on new capital expenditure for growth.
Growth Through Software and Services
- Focus on recurring revenue through software and services.
- Leverage existing probe installations to offer data-driven insights and factory floor management solutions.