Our markets - Smiths Group plc


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We serve seven main markets with strong long-term profitable growth prospects. Around half of our revenue is derived from servicing our customers’ aftermarket needs or supplying consumables that are used as part of our customers’ everyday procedures. This gives resilience to our revenues and provides strong cash-flows.

Through our five divisions, we serve seven markets: medical technology, energy, security and defence, space and commercial aerospace, transportation, construction and general industrial. These markets have strong drivers of long-term, profitable growth.

Medical technology

HealthcareOur largest single end market is medical technology. The majority of revenue comes from Smiths Medical, while both Smiths Interconnect and Flex-Tek supply components to medical device manufacturers. The medical technology market is driven over the long term by ageing populations, the increasing incidence of chronic diseases and increasing healthcare spending in developing countries. Some 82% of Smiths Medical’s revenue is from single-use devices used in everyday hospital procedures. The remaining 18% of revenue is from capital equipment, such as infusion pumps.

Security and defence

PlaneSmiths Detection provides threat detection equipment that enhances safety and security for airports, ports and borders, urban security, military and emergency responder markets. Demand is driven in the medium term by growth in air travel and ongoing geopolitical unrest and associated terrorist and criminal threats, although there is considerable variation by geography and end market. The growing installed base creates opportunities for aftermarket and software upgrade revenues. The defence segment is served by both Smiths Detection and Smiths Interconnect, who provide a range of trace detection and mission-critical secure connectivity solutions respectively, and is primarily driven by spending on specific programmes in developed markets like the US.


FactoriesThis market is primarily served by John Crane, with oil and gas representing around 55% of its revenues. Long-term drivers include increasing global demand for energy and increasing environmental and safety requirements. John Crane’s mechanical seals and seal support systems are primarily used in the process equipment found in downstream (eg refineries) and midstream (eg pipelines, gas storage, liquefied natural gas (LNG) transportation) applications. Demand for original equipment (36% of revenue) is affected by customer capital expenditure cycles, while aftermarket service (64% of revenue) depends on utilisation rates and equipment age. The drop in oil prices since late 2014 has reduced customer capital expenditure, but we have seen investment in growing areas such as LNG and pipelines and increased aftermarket demand due to pent-up maintenance and upgrade requirements.

Space and commercial aerospace

SatelliteFlex-Tek provides hydraulic hoses and fuel lines for airframes and aeroengines and Smiths Interconnect supplies connectors, microwave components and antenna systems for aircraft and satellite communications. Aerospace demand is driven by investment in new fuel-efficient aircraft and increasing passenger and freight traffic.


HousesFlex-Tek manufactures a range of products such as flexible gas piping and ducting for Heating Ventilation and Air Conditioning (HVAC) applications that are used in the construction of homes and commercial buildings, primarily in the US. Demand for homes for families is driven by population growth.


TrainIn the rail segment, Smiths Interconnect supplies cable solutions, ferrite components and connectors for communications, control command and signalling systems in autonomous trains. Growth is driven by increasingly sophisticated digital train systems, high data-rate connectivity for passengers and the distribution of high levels of electricity to support the power demand of these systems. In the automotive segment, Flex-Tek supplies hoses for fuel and brake fluid delivery.

General industrial

FactoryWe serve a range of general industrial sectors including petrochemical, mining, pulp and paper, water treatment, semiconductor test, heating elements and automotive, through John Crane, Smiths Interconnect and Flex-Tek. There are different drivers for each of these markets but overall they tend to track GDP.

Revenue from equipment sales and aftermarket/consumables

  • Original equipment sales 45%
  • Aftermarket/consumables 55%

How we bring technology to life

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Smiths Group divisions:

John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect, Flex-Tek

Smiths Group plc:
Registered office 4th Floor, 11-12 St James’s Square, London, SW1Y 4LB
Incorporated in England No. 137013
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