Modern Materials Handling - April 2011

modern special reportThe top five systems suppliers reported combined 2010 revenue of more than $6.83 billion, up 3.3% over 2009.that order intake has increased favorablyand is expected to positively affectupcoming sales revenues.Making Modern’s listOn the plus sideHaving a positive effect on its bottomline was No. 2 Daifuku’s strategicmaneuver last October to take on acapital stake in Knapp with the acquisitionfrom its current management teamof approximately 6% of total shares outstanding.This deal is credited with havinga positive, albeit fairly slight, impacton Daifuku’s year-end results.Also having a positive effect on thebottom line was Dematic’s acquisitionof HK Systems, which was finalizedin September of 2010. HK Systems,a North American automated materialshandling and software solutionsprovider, was No. 17 on Modern’s Top20 ranking last year with $200 millionin revenue. The purchase explains, inpart, Dematic’s 20% jump in revenue.Kardex Remstar International alsosaw an increase in revenue with thepurchase of its United States competitorKardex Systems. With the dealsealed and the two entities now reportingtogether under one managementteam, Kardex Remstar, as it is nowknown, has moved up two positionsfrom No. 10 into the No. 8 spot.The Fives Group, headquartered inParis, also climbed the chart thanks toan 11% increase in revenue that movedthe company up four positions fromNo. 13 to No. 9.To qualify for Modern’s list, companiesmust be suppliers of materialshandling systems, not just equipmentproviders. In addition to manufacturingat least two major handlingsystem components, a companymust also employ full-time staffthat designs, installs and integratesmaterials handling systems.These systems include at leasttwo of the following: transportationdevices, storage and staging equipment,picking units, sortation systems,information management systems,data capture technologies andother types of handling equipment.To be considered worldwidesuppliers, companies must havea presence in North America andmust also be able to report theirmaterials handling revenues toModern. (Lockheed Martin, forexample, is a systems supplier with aNorth American presence, but isn’tincluded in our Top 20 list becausethey can’t single out the revenuethat comes from materials handlingcontracts.)Intelligrated has broken into thetop 10, at No. 10. Contributing to itsupward movement is its recent purchaseof FKI Logistex. Last year’s totalrevenue reflects about six months ofreporting as Intelligrated alone andsix months of reporting as a fully integratedcompany.Another notable business maneuverwas the acquisition of the New Yorkbasedengineering services companyRetrotech by Chicago-based Savoye,which is a division of No. 11 LegrisIndustries. But because this deal happenedin February of 2011, the financialimpact will not be noted until next year.We’ll also have to wait for an officialrevenue figure from InterlakeMecalux. At the time Modern went topress, Interlake Mecalux did not havean approved number to report, so we areusing the best information available to usat the time. Our estimate has the companyholding on to the No. 7 position.Welcome aboardLast year Modern said we would bewatching Illinois-based Wynright andSystem Logistics, headquartered inModena, Itlay. It’s a good thing we didbecause both have joined the ranks ofthis year’s Top 20 list.Wynright is making its debut on thelist at No. 17 with $135 million in revenue.A significant factor in Wynright’s24 A p r i l 2 0 1 1 / Modern Materials Handling mmh.com