Smiths Detection is a global leader in threat detection and screening technologies for aviation, ports and borders, urban security and defence. With over 70 years of experience, it delivers solutions to protect from the threat and illegal passage of explosives, prohibited weapons, contraband, toxic chemicals, biological agents, and narcotics.
During your time at Smiths Detection, to what extent have you noticed any major shifts in terms of market demands for threat detection and screening services?
I've been at Smiths for seven years and recently took on the role of President, which is a fantastic challenge. Most of my time with Smiths Detection has been spent in Asia; I started running the India operation from New Delhi, then managed Asia Pacific from New Delhi and Singapore, before returning to the UK two years ago to oversee EMEA and APAC. Now, I run Smiths Detection globally. Our business provides solutions to multiple Customer segments, with aviation being the largest, making up a little over half of our business; over 90% of the top 50 airports worldwide use our solutions.
Most of our customers are local airports, port operators or urban venues, making us more multi-local in our reach and global in our scale. While some customers, like Air cargo operators, are large global companies, most are local companies. Our business has evolved over time from supplying just detection equipment, to providing connected and digitally enabled detection solutions to fulfil customer needs. We manufacture, install, and service our equipment at Customer sites for up to 15 years… We usually have service engineers on-site at the Customer locations to ensure the equipment runs smoothly.
Which of your products do you currently see the most demand in the aviation industry, and how are you developing applications in line with evolving customer needs?
Within aviation, there are three main segments. First is passenger checkpoints, where we provide security screening solutions which include baggage scanners for hand luggage, tray return systems and people screening equipment. The second is checked-in luggage screening, which involves larger scanners; these high-throughput scanners ensure the safety of baggage before it is loaded onto planes. The third is air cargo, where we provide scanners for parcels handled by air cargo operators.
The evolution of our technology has gone from single-view to dual-view x-ray imaging, and now to CT technology, which provides more precise, detailed three-dimensional images. This is similar to medical CT scanners, offering a much better quality image, which allows passengers to keep items like laptops in their bags. This improves customer experience and airport efficiency, reducing the time taken to pass through security. With older technology, it might take seven to ten minutes to get through a checkpoint, but with CT, it takes just three to four minutes.
How wide-ranging is the spectrum of threats your technologies are designed to detect and expose?
The list of threats we detect is extensive and confidential. We typically look for dangerous goods, narcotics, arms, and other evolving threats. Each new technology brings added capabilities. To address false alarms and improve accuracy, we've recently launched a new product called Diffraction, which reduces false alarms from around 20% to less than 5%. This provides precise identification by analyzing the crystalline structure of materials.
We've developed new hardware technology and enriched our AI-based software algorithms which can now detect threats more reliably. Currently, operators manually review images, but with AI, we can automate some of this process, reducing human error and improving efficiency.
What are the potential implications of increased dependency on automation for safety screenings as opposed to traditional manual reviews conducted by humans?
Once fully approved by regulators, this AI-based software can significantly reduce the need for manual checks and will be widely adopted, helping airports deal with staff shortages, and handling up to 80% of threat detection tasks. The shortage of staff at airports has increased, so automated detection technologies are very attractive to airports struggling with manpower issues.
Implementing automated processes can be sensitive, but the current staff shortages make it somewhat easier. The AI software allows airports to maintain or even increase capacity without needing additional personnel, providing a valuable solution to their staffing challenges.
What does your growth strategy for Smiths Detection look like over the next 2-5 years?
Our growth strategy focuses on areas with regulatory requirements and technology refreshes, like the ongoing shift to CT technology in checkpoints. This deployment began in Asia, then moved to the US, and is now in play in Europe. Over the next two years, we expect significant growth in this area.
We also plan to expand our software solutions, integrating them more deeply into airport operations. For example, connecting all security machines to a central control room for efficient monitoring. We are also looking at biometrics integration to streamline passenger experiences further. Our new Diffraction technology, which offers precise threat detection, will also drive growth, particularly in customs applications.
