Watts Celebrates 150 Years

By Andrew Morrissey

A once-small commercial enterprise is now a global water-technology company 

What started as a business producing steam and water pressure valves in 1874 built the foundation for a global company operating in sectors ranging from valves and drainage to HVAC.

Watts Water Technologies marks its 150th anniversary this year. The company traces its origins to a machine shop set up by English immigrant Joseph E. Watts, who fabricated and supplied essential parts and fittings to textile mills around Lawrence, Massachusetts.

Within years, Watts secured 18 patents for innovative pressure regulators designed to stop catastrophic boiler failures.

Through these many years, growth and innovation continued, leading also to broad diversification – paving the way for today’s high-quality, worldwide water solution technologies. Watts technologies now melt ice for entire city blocks and filter safe drinking water in isolated disaster zones worldwide.

Watts leaders and employees celebrated its anniversary at the company’s global headquarters in North Andover, Massachusetts, in August. The company achieved its $1 billion threshold in ’06, and now employs more than 4,500 people around the world. Bob Pagano, CEO, president and chairperson of the Watts’ board, credits the company’s focus on customers for sustained growth.

Watts built long-term relationships with wholesalers, engineers and contractors to supply products and fuel advancements in technology to adapt to changing needs and demands.

“When they understand the breadth, viability and durability of our product range, we hope they have greater appreciation for our role. In essence, we offer solutions for all facets of the challenge of bringing water safely into and out of a property, while also effectively managing its frequently diverse role within,” Pagano said.

When Pagano joined Watts a decade ago, he launched a strategic plan with four pillars: growth; operational excellence; commercial excellence; and One Watts to encourage a diverse talent and performance culture. One Watts is a system of processes and behaviors to improve culture, strategy and behaviors within the company, which are intended to develop internal talent and business success.

“Initially, One Watts was created to build affinity among customers, encouraging preference among buyers to purchase or specify a broad range of Watts products. But it’s grown to be much more than that,” he said. “We seek to align our culture — how we act, work, strategize and succeed — with the customer, always, central to each of these.”

The company’s culture is focused on the need to stay abreast of technological change and market diversification. In 2022, 19% of Watt’s total sales were comprised of smart and connected technologies. The percentage has grown since.

“We’ve got to keep pace to remain viable,” he said.

 

Company Adapts to Changes in Ownership and Markets

The company’s founder died in 1894, but his company and its products showed staying power, even after the company changed hands.

As the 1800s gave way to the 20th century, new materials and technologies allowed Watts to expand from industrial products into residential equipment, according to “The Watts Way,” a book about the company’s history written by David Lyon and Ned Berube.

Setbacks fueled by changes in the textile industry’s migration to Southern states slowed growth, but the changes prompted the company to seek new markets. Business took a big step in size when World War II erupted because Watts either supplied or received royalties for valves used on hot-water supply tanks for newly built barracks popping up all over the country.

After the war, Watts had to adapt to changes in complexity caused by growth and a changing marketplace.

The half-dozen years immediately following World War II was a period that might be described as the corporate equivalent of adolescence. In its youth, the company began as a machine shop and had branched out as a national manufacturer. In its “adolescence,” Watts’ growth included expanding product lines and sales volume.

By the 1960s, the company sought new growth abroad with its first foreign manufacturing plant opening in Canada, then in England to service the European market. The strategy paid off and Watts Industries became a publicly traded company with an initial stock price of $16.50 a share in 1986, offering new product lines in backflow prevention valves and drains. Watts began to purchase other manufacturers to expand capabilities to serve global demands.

 

Technology Advancements Drive Growth

By the 2020s, Watts was delivering smart systems for customers to boost performance and efficiency to make systems more environmentally sustainable. The company also acquired Bradley Corp. to expand product lines into plumbing fixtures and safety products.

At its 150th celebration in Massachusetts, Pagano pointed to advancements in technology and manufacturing that are being driven by smart systems. Robots and automation are in use at all company facilities. Artificial intelligence provides better insights and efficiencies throughout the company, with an overall goal of reducing the consumption of energy resources and emissions.

“Delivering water safety to people around the world is truly an important mission. We’ll continue to lead our industry with high quality innovative solutions backed by an amazing customer experience in industry-leading training programs,” Pagano said. “We’re committed to this continued journey with even greater determination. Every effort, like every drop, has a ripple effect. Together, we can create a more sustainable world.”

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