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Innovation always on the boil at STRIX, the award-winning Isle of
Man manufacturer.
A STRIX control is used over a billion times a day around the world. That's
some statistic. Another hot fact is that STRIX products are used by about
20% of the world's population, which might explain why the company has just
won its third Queen's Award for Exports.
STRIX - the company name is the Latin word for a screech owl - was
founded by John Taylor in 1981. Now with 350 employees at its
original Isle of Man manufacturing site, STRIX has manufacturing plants
in Chester, Malmesbury and China as well as sales offices in
Brussels, Hong Kong and Moscow - over 1,000 employees in all.
Turnover is over the £70 million mark, profitability is very healthy, and
annual growth runs in double figures "somewhere between 10% and 20%
depending on the vagaries of life," according to the executive
chairman, Eddie Davies OBE.
And now there has been this third Queen's Award. Fourth, in fact, since
amongst the export awards was the Queen's Award for Innovation in
2000. The first export award came in 1995, the second in 1998.
The citation for the 2002 award (now called the Queen's Award for
Enterprise: International Trade) stated that STRIX had increased its
overseas earnings by almost 50% in the previous three years, exported
well over £100 million worth of product to more than 40 countries
worldwide. STRIX's main market is China, not so much to consumers
but to manufacturers who use STRIX's controls in their product and
re-export them. The biggest consumer markets, are probably Germany and Russia.
Creating all the heat under this Manx-based operation is STRIX's product
range of controls for kettles, jugs and other water boiling appliances
such as coffee makers. John Taylor started the company to make and market
his invention of a kettle control with an automatic steam switch-off - the
blessed saviour not only of squillions of kettles but of square miles of
kitchen wallpaper spared from forgotten kettles steaming till they boil dry.
Today STRIX is the world market leader (with a staggering 70% world market
share) in kettle design technology using thermostatic controls. Other
quantum leap innovations in STRIX's career have been the control for
the cordless kettle, and the thermal fuse - which allowed kettle and
jug manufacturers to switch to plastic rather than metal.
Davies explains: "With the old shiny metal kettle, if the automatic
switch-off didn't work, the water would boil off and disappear, and a
second control would kick in. If that also failed, the heating element
would go bang, and that would be that. But if the kettle were made
of plastic and both controls failed, the plastic would burn, and there'd
be a serious risk of fire."
"The thermal fuse stops that risk, and allowed manufacturers to move first
to white plastic and then to the huge variety of colours and translucent
plastics on the market today."
A move on from the original cordless kettle has been made possible by
STRIX's 360° cordless control (which allows user to plonk the kettle
down any old way on its base rather than slotting it in carefully).
STRIX has also taken the heating element out of the water and hidden it from
the user - not only does it look better, but it makes the kettle easier
to clean. "The German housewife likes to take a Brillo pad to the inside
of her jug," says Davies. "British kettle users might be used to the sight
of limescale, but it's not so well tolerated elsewhere in the world."
Domestic habits are a key factor in STRIX's design parameters. "Whatever form
of abuse you can dream up for a kettle, someone somewhere will be doing
worse," laughs Davies. Boiling socks in the kettle, for instance.
"We had a jug back from one customer which had failed, and when we looked
inside, there was a pair of socks at the bottom." Davies is amused by the
idiosyncrasies of his 1.2 billion customers.
One might think, living in Britain, that a kettle would be an essential
part of everyday life, but not so. Kettles were virtually unheard of
in Germany ten years ago - they were a nation of coffee drinkers and
relied on their percolators. Only now are they being turned on to the
delights of tea. The same applies to southern Europe and North
America - coffee drinkers all. Not only is tea slowly making itself drunk
around the world, but STRIX is applying its designs to coffee-making appliances.
Russians have been drinking tea for centuries, but they boil water in
a samovar - so STRIX now makes controls for samovars; but the Russian
market is also slowly converting to jugs and kettles. The same goes for Turkey.
In South East Asia the problem is different - there filling the kettle from
the tap does not give the consumer drinkable water, so STRIX has come up
with a solution that includes filtration, amongst other things.
And quite apart from the evolution of STRIX's technology, the world
population continues to grow at about 2% per year; in 1984 there were
5.5 billion folk on the planet - today there are over 6 billion. Not
only that, but the population is living longer, has an increasing
disposable income, and improving infrastructure on tap. So even if
STRIX never came up with a new idea, there is a never-ending supply
of brand new consumers to sell a kettle to.
Continuous improvement, however, is part of the STRIX culture. The company
spends about 5% of its turnover on research and development - higher than
average - and STRIX engineers work with customers' own design teams from
early stages on issues such as cosmetic cover design and its effect on
steam control reset times, or steam ducting design and response times.
The high reliance on engineering excellence was one of the reasons STRIX set
up on the Isle of Man. Founder John Taylor happened to be living there at
the time, but there was a good pool of engineers on the island because of
the TT racing industry; there was also a pool of available labour and
enthusiastic support from the Isle of Man government. And the tax
advantages presumably. "The tax situation was a bonus," says Davies,
"but no manufacturer would choose a location purely because of a
benign tax regime - there were more obvious advantages to being on Man
than that."
Eddie Davies has enjoyed one of the more obvious advantages of the Isle of
Man - the sheer pleasure of living on one of the more beautiful islands
off Britain's coast - since 1984 when he came to join John Taylor as
a managing director.
With a first class maths degree from Durham, Davies trained as a mechanical
engineer and a management accountant, and was assistant group MD for
the Scapa Group in Blackburn, with a turnover of £300 million. Approached
by headhunters, Davies took the job with STRIX. "From a company the size
of Scapa to one with a turnover of £1 million and 100 staff may not
have seemed an obvious career move," admits Davies. "But John Taylor
impressed me enormously, and I could see the potential for the product. A
world market with 100 million new consumers a year, all of whom need to
boil water to survive, a new concept and no competition - that seemed
like a meaty challenge."
And so it proved. STRIX flourished, and continues to grow at attractive
rates. Davies sees organic growth as the preferred route: "Acquisitions
are opportunistic - we have made a few but it is not the ideal route to
growth for us, I prefer to stick to our knitting."
Davies' knitting, however, is not just making and flogging product. To
win a Queen's Award a company cannot just be good at what it does, but
how it does it. Corporate responsibility to the wider community, to
the environment, to the workforce - all aspects of company thinking
and practice are examined by the QA judging panel before awards are made.
Such stringent criteria mean that having one Queen's Award - let alone
four - stands STRIX in very good stead in world markets. "There are no
equivalent awards outside the UK, and having a Queen's Award is seen as
a recognition of our standing as an excellent company and puts clear water
between us and our competitors," says Davies.
One would think that a company with 70% market share would have
an fair-sized stretch of clear water before any competitors
hove into view anyway, but no doubt the Queen's Award makes
STRIX that much more buoyant.
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