McDonald Water Storage and Heriot-Watt partnership wins £198k innovation funding
A long-established Scottish manufacturer is transforming its operations through a collaboration with Heriot-Watt University’s Practice Excellence Network (PEN).
Together, PEN and Glenrothes-based McDonald Water Storage have secured £198k in funding through the East of Scotland KTP Centre and Innovate UK Knowledge Transfer Partnerships, marking a significant step in the company’s modernisation journey.
Led by Edinburgh Business School, PEN connects businesses with academic expertise and student talent to address real-world challenges. This reflects the School’s commitment to accessible, practice-oriented education and research that promotes responsible business and delivers tangible impact.
McDonald Water Storage, which has been manufacturing hot water storage solutions for over 80 years, is using the partnership to modernise core processes, particularly across sales and administration, as part of its long-term strategy for growth and efficiency.
Through PEN, the company has worked with Edinburgh Business School to bring fresh perspectives into key areas of the business. Since the collaboration began, four projects have been delivered, spanning digital capability, sales and order processing, marketing, and supply chain management.
The partnership will now progress into a Knowledge Transfer Partnership (KTP), embedding specialist expertise within the company to drive automation and continuous improvement. Over time, this is expected to scale across multiple areas of the business, from supply chain to factory operations.
David Stewart, Joint Managing Director of McDonald Water Storage, highlighted the value of this collaboration: “I think the primary benefit of a KTP is that you’re getting an incredibly intelligent, capable individual embedded in the company, backed by a huge resource of academic expertise from the university. It really helps create a smooth process for us.”
Alistair Pryde, PEN Lead, has played a central role in developing and delivering the collaboration, ensuring that projects translate into meaningful outcomes for both business and university.
He said: “This is exactly what Edinburgh Business School is here to do: bring together students, academics, and businesses to solve real challenges. Through the Practice Excellence Network, we are helping organisations discover new ways of thinking, build capability, and create lasting impact.”
Edinburgh Business School’s Executive Dean, Professor Angus Laing, also reflected on the importance of this partnership: "Our strength as a School lies in our ability to connect knowledge with practice. Collaborations like this demonstrate how we can work alongside organisations to address real challenges, while creating meaningful opportunities for our students and delivering tangible impact beyond the University.”
What began as a series of student projects has developed into a longer-term programme of change, showing how industry-academic collaborations can help businesses thrive. Watch the interview with David Stewart here.