Chairman, President and Chief Executive Officer at Ingersoll Rand
Thanks, Matthew, and good morning to all. I would like to begin with a big thank you to our employees worldwide for their hard work in helping us deliver another record quarter in Q3. You consistently exemplify our purpose and think and act like owners to deliver our customer's needs. Every day, I am impressed with how you're leveraging our IRX process to outperform in a continuously challenging environment. Our performance this quarter and year-to-date reinforces the impact we have as owners of Ingersoll Rand.
And now, let's review how we accomplish these results on Slide 3. Our achievement is reflected in the numbers and also in our commitment to lead sustainably. We continued to position Ingersoll Rand for long-term value-creation through industry-leading innovation that offers intrinsically sustainable benefits to our customers. Through Q3, demand remained strong. And while macroeconomic, geopolitical, and supply-chain uncertainties continue to be a concern, we remained focused on what we can control while leveraging our strong balance sheet and operational mindset to execute on our commitments.
Remaining agile in today's environment is critical and you will see today, how we continued to accelerate organic growth through demand generation and product execution. In addition, we remained committed to our capital allocation strategy, which is focused on inorganic growth through bolt-ons acquisitions. Today, we're highlighting six new companies, we have recently acquired or have under contract that will strengthen our position in core categories and broaden our exposure to high-growth sustainable end markets.
Turning to Slide 4, today we'll discuss four critical elements of our compounded model to demonstrate how we stay focused on controlling what we can control.
Moving to Slide 5, we have some exciting news to share. We recently earned a score of 81 on the S&P Global Corporate Sustainability Assessment. As of October 21, this score puts us at number one in North America, number four in the world, and in the 99th percentile within our industry, which is very impressive. And think about it, less than three years ago, we were not even showing on the left, and today we are number one in our industry in North America.
We continued to align our portfolio to sustainable high-growth end markets, supported by mega-trends. In September, we hosted our second Annual Sustainability Call, where we introduced our enhanced strategic imperative lead sustainably, which is based on a simple two-pronged approach on grow sustainably and operate sustainably.
On this slide, I'll [Indecipherable] details of highlighting two examples from our broad core portfolio that help improve energy efficiency and reduce water consumption. We believe that within the US alone, there are over $1.3 billion in cost-savings opportunities for compressed air system. And that number is likely five times greater globally. The Energy Recovery Unit shown here is an innovative device that captures up to 94% of the heat generated during air compression and uses that to warm water that can be used in our processes or [Indecipherable], with a payback period for our customers of less than one year on average. Our impact on water conservation occurred in multiple ways, but perhaps the most compelling is our products that eliminate the need for water usage in critical applications.
The Runtech, turbo blower technology is a perfect example. This blower technology is used by leading pulp and paper manufacturers and it replaces an alternative technology that required a fresh water supply. Our existing installed base around the world is currently 7.5 billion gallons of water a year. And we estimate that over 15 billion gallons of water per year could be potentially saved with a full adoption of our Runtech technology globally. To put that into perspective, that's more than three times the amount of bottled water concern in the United States annually.
Within our own facilities, operate sustainably is an integral part of our business, whose focus is on reducing the electricity and water consumption to drive zero greenhouse gas emissions. Our commitment to operate sustainably delivers value for our stakeholders and our planet creates a sense of purpose and inspiration for our employees and has a positive impact on the communities in which we operate. This commitment also makes Ingersoll Rand the supplier of choice for our customers. Together, we are building a better future employment by leading sustainable actions within our business, with our suppliers, and in our communities.
In Slide 6, [Indecipherable] demonstrate, two simple examples on how we continued to control what we can control to deliver organic growth. On the left, we have an example of demand-generation execution in Europe, which clearly has been a challenging market. In Q1, at the start of the Russia and Ukraine war, we saw a downward trend of marketing qualified leads or MQL. The demand-generation team immediately jumped into action leveraging IRX to invert that trend through channel campaigns, focusing on high-growth sustainable markets. A vertical-specific and energy-efficient related webinars and utilizing trends there to remain agile and revised all targeted campaigns. As a result of these actions, we saw a 60% increase in MQL, which is our primary leading indicator for orders. And as you can see from our results, orders in Mainland Europe continued to remain healthy and grew in the low-single digits, excluding effects for our compressor portfolio in ITS.
On the right, is an example of an outstanding product-line execution in China. Prior to the merger, Gardner Denver had a solid compressor portfolio for the China market but did not have the right sales structure or operational footprint. Post-merger and leveraging IRX, the team refreshed the program integrating the best practices from both IR and GD. Through the new product on process, they improve efficiency by 5% to 10% and also improve the cost structure of the compressor portfolio through the utilization of i2V. With those improvements in efficiency and cost structure, we focused on fast-growing small to medium-sized customers and expanded the Gardner Denver channel over 200% separate from the legacy IR channel. The end result is triple-digit growth in revenue and unit volume in a highly competitive market.
Turning to slide seven, since our Q2 earnings call, we announced the signing of six bolt-ons acquisitions that enables us to increase value across ecosystems by expanding our core mission-critical flow creation technologies, while accelerating our addressable market with close adjacencies. So, let me quickly walk you through these deals.
First, AirMax, which is a leading full service provider of air compressors and compressed air system services based in France. This is an example of a strategic channel expansion for our ITS segment, which will leverage AirMax's strong End-User relationship and technician network to convert competitive products and support aftermarket growth. Second is better here, a leading Spanish manufacturer of a blower and vacuum systems. This acquisition strengthens our position in core blower and vacuum categories in high-growth sustainable markets including water and wastewater. Next is Everest, which is a leading Indian manufacturer of a blower and vacuum systems. Everest significantly broadens our presence in the key high-growth market of India. These three acquisitions are strongly aligned with our strategy and increase our product portfolio in core technologies, who are enabling expansion into close adjacencies.
Continuing on page eight, moving from left to right of the page. These are great examples of close adjacencies with immediate synergies. The SPX Flow air treatment business is a leading manufacturer of desiccant and refrigerated dryers, filtration systems, and purifiers for compressed air. These products are highly complementary to our portfolio since more than 75% of compressors need one of these air treatment solutions and in addition, they generate strong recurrent aftermarket business. Next Dosatron International, which is the US leader in water-powered flow solutions and IIoT for hydroponics and agricultural markets, which improves our capabilities in several high-growth sustainable end-markets through depreciated digital controls and IIoT solutions. And finally, Westwood Technical, which is a highly experienced control instrumentation in IIoT specialist with technology that is complementary to our YZ Systems product line. Westwood enhances our IIoT platform including innovative Low Power Wide Area Networking Technology. We expect the team to integrate these acquisitions at the regional level by utilizing IRX and our proven model of integration excellence that you have seen in prior acquisitions. Our M&A funnel remains strong and as of today, the funnel still remains over five times larger than it was in Q3 of 2020.
I'll now turn the presentation over to Vik to provide update on our Q3 financial performance.