What do you mean by becoming diffused?

People specialized in the steam area are becoming fewer and fewer and this is also true from the customer side. For a given customer, there used to be some experts in the steam system. Those people are now often retired. This is good for Spirax because that means the customer will have to go to Spirax to get their knowledge. In the past, a lot of customers had experts. You will also see Spirax recruited some of those experts, from time to time.

How can Spirax navigate that challenge?

The first point to remember is that Spirax doesn’t make the boiler. The steam generation is, currently, a very limited part of Spirax’s business. However, what Spirax does is distribute the heat energy. From a pure distribution perspective, steam is an efficient method. In order to win these kind of greenfield opportunities and also, in the long run, convince existing customers to expand their steam system, rather than go for something completely new, I think Spirax need to be more involved in how the steam is generated in a renewable way. They would need to do some kind of partnerships.

Where are they unique in that whole process?

Spirax is the leader from where the steam is generated until it is used, somewhere in the production line of the customer; making sure that the steam energy is distributed in an effective way. In order to do that, you need efficient steam traps and you also need to reuse the energy. There are all those kind of things where Spirax can make an argument that their expertise helps the customer improve energy efficiency.