US company MSA Safety (MSA) was founded in 1914 in response to the Jed Mine explosion in West Virginia. The company designs and manufactures products that protect people and facility infrastructure. Its equipment is used worldwide across a wide range of industries and public-sector applications, including energy, utilities, construction, manufacturing, transportation and firefighting. The company holds leading positions in most of its core product categories.
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Impact on wellbeing
MSA's products are mainly related to ensuring the health and safety of firefighters and industrial workers. As such, the company contributes to our wellbeing transition, one of five interlinked transitions we deem vital for a thriving planet and to SDG 3 (good health and wellbeing).
About 45% of MSA's revenues is related to gas detection. Products in this segment detect the presence or absence of various gases in the air. Typical applications of these instruments include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic gases. Detection of an oxygen deficiency serves as an early warning system, alerting personnel to the presence of low oxygen levels and allowing them to take necessary precautions or evacuate the area.
Another 30% of MSA's revenue is related to fire safety. The company provides self-contained breathing apparatus products, helmets and protective apparel and boots to firefighters. In this segment, MSA primarily sells to fire departments and first responders.
About 25% of MSA's revenue is related to industrial head protection and fall protection.
Engagement priorities
Notwithstanding its positive impact on wellbeing, our assessment of the company revealed sustainability issues that require attention. Although MSA has made progress in assessing climate risks, several areas require further engagement. The company does not yet report Scope 3 emissions and is still calculating them. We would appreciate greater transparency in its manufacturing footprint, emissions-reduction opportunities and climate-risk management strategy.
Another topic for discussion is MSA’s water use, its pollution controls and the monitoring of relevant emissions. On social issues, we would welcome clearer targets for female representation and disclosure of the gender pay gap.
Structural growth drivers
MSA’s financial performance is influenced by cyclical economic indicators such as employment levels, economic growth and capital expenditure in its end markets. However, several structural trends support growth beyond overall GDP.
One trend is the increased global focus on workplace safety. Governments are strengthening safety standards and enforcement, while employers are recognising that investment in injury prevention can generate significant economic returns. Fall protection, for example, remains a major area of workplace risk and regulatory attention. In emerging markets, the gradual adoption of Western safety standards provides an additional growth opportunity.
Another important driver is government spending. Approximately 35-40% of MSA’s sales are generated by government customers, including fire departments and security agencies. Demand in the US, covering more than half of MSAs net sales, is supported by funding programmes such as Assistance to Firefighters Grants and Staffing for Adequate Fire and Emergency Response grants. While annual funding levels vary, government investment in first-responder equipment has generally provided a stable source of demand.
MSA may also benefit from changing customer requirements. Fire and rescue services are increasingly considering additional sets of protective gear and physiological monitoring technologies, while industrial customers are adopting connected safety solutions, integrating data gathering and communication, that improve monitoring, compliance and emergency response.
All in all, MSA combines a healthy balance sheet, strong margins and leading market positions.
The company is part of the Triodos Pioneer Impact Fund’s portfolio.
Disclaimer
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