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Top 20 Suppliers
Top 20 Suppliers
TOP SUPPLIERS
LABOR CRUNCH DRIVING MORE
INNOVATION AND INVESTMENT
2018 welcome
TOP SUPPLIERS TOP SUPPLIERS:
LABOR CRUNCH DRIVING MORE
INNOVATION AND INVESTMENT
The combined
forces of a strong
economy, e-com-
merce growth and
a tight labor market
are making it more
important the ever
for warehouse and
distribution center
contents
(DC) operations to
find ways to make their existing infrastruc-
ture and people more productive.
And while solidifying existing vendor
Top 20 system suppliers 4 relationships is always important to stay
Across the globe, the industry achieved record-smashing growth. on the cutting edge of productivity, many
warehouse and DC operations managers
are now searching for new, dynamic part-
Top 20 lift truck suppliers 8 ners that maintain an innovative breadth of
It’s full steam ahead for the lift truck industry, buoyed globally by technology advances and equipment, technology, functionality and
strong, emerging economies. after-market services along with rock-solid
financial performance that assures a consis-
tent and risk free relationship.
Top 20 automatic identification and data capture suppliers 14 In this Special Digital Issue, the editorial
The lines are blurring in the automatic data capture market where, thanks to advancements staff of Modern has collected our annual
in smart phone technology, opportunities are opening up to a larger swath of companies that lists of vendors and service providers broken
need advanced technology to handle their single-item fulfillment and other e-commerce- down by financial performance along with
related demands. the top warehousing 3PLs by square footage
to help warehouse and DC management
professionals better understand who’s lead-
ing the pack.
Top 20 warehouses 18
Modern’s look at the largest 3PL and refrigerated facilities by size shows
continued strength for both markets.
Top 20 supply chain software suppliers 24 Michael A. Levans, Group Editorial Director
While the top of the list remains stable, up-and-comers are mixing up the software Comments? E-mail me at
landscape with Cloud capabilities that traditional vendors are working to replicate. mlevans@peerlessmedia.com
Follow me on Twitter: @MikeLeva
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Make
robotics a
reality in
your DC.
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Top 20 worldwide materials handling system suppliers
Worldwide Worldwide Percent
2017 2016 2016 revenue 2017 revenue change Three-year
Rank Rank Company Web site (million USD) (million USD) '16-'17 change Headquarters
1 1 Daifuku Co., Ltd. daifuku.com 2924 3659 25.1% 44% Osaka, Japan
Schaefer Holding
International Neunkirchen,
2 2 GmbH ssi-schaefer.us 2630 3060 16.3% 23% Germany
3 3 Dematic dematic.com 2016 2267 12.5% 42% Atlanta, Ga.
Vanderlande Veghel, The
4 5 Industries B.V. vanderlande.com 1231 1538** 24.9% 46% Netherlands
Murata Machinery,
5 4 Ltd. muratec-usa.com 1260 1287 2.1% 28% Kyoto, Japan
Honeywell
6 8 Intelligrated intelligrated.com 850 1000 17.6% 59% Mason, Ohio
TGW Logistics
7 12 Group GmbH tgw-group.com 568 915 61.1% 74% Wels, Austria
Beumer Group beumergroup.
8 7 GmbH com 852 900 5.6% 0% Beckum, Germany
15 N/A Elettric 80 elettric80.com 150 261 74.0% 99% Viano, RE, Italy
Bastian Solutions, bastiansolutions.
16 16 LLC com 217 233 7.4% 39% Indianapolis, Ind.
17 17 DMW&H dmwandh.com 172 225 30.8% 80% Southgate, Mich.
Stöcklin Logistik
18 N/A AG stoecklin.com N/A 153 N/A N/A Aesch, Switzerland
viastore systems
19 19 Inc. us.viastore.com 140 152 8.6% 17% Stuttgart, Germany
systemlogistics.
20 20 System Group com 129 129* 0% -26% Fiorano, MO, Italy
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2018 Top 20 system suppliers
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Swisslog, which is now fully integrated Remstar USA’s history last year, increas- Systems in late 2015) held 17th place,
into the KUKA Group worldwide, also ing our bookings by 30% over 2016,” finishing just behind Bastian with revenues
acquired Power Automation Systems (PAS) says Mark Dunaway, executive vice of $225 million—a 31% year-over-year
in April 2016. PAS manufactures the Pow- president of new business. “A strong improvement. A spokesperson says growth
erStore, a leading pallet shuttle system. economy along with continued support across all segments was a result of the
Swisslog has also fully integrated both PAS and investment from the Kardex Group demand in the automotive and wine and
and Forte Industries, which it acquired in have positioned us to continue this spirits distribution industries.
April 2015 under the Swisslog brand. growth in a sustainable way for the fore- In 18th place, Stöcklin is a newcomer
seeable future.” to the list and reported $153 million in
Universal growth After finishing just outside the Top 20 revenues. Tony Varda, director of business
Knapp was unable to report revenues by last year, Elettric 80 has made a triumphant development, says growth from non-tradi-
press time, so its 2016 revenues have been return to claim 15th place. After doubling tional automation markets, such as Russia,
carried over and are enough for it to retain within three years, the company’s annual Brazil and Mexico have helped fuel the
11th place. revenues totaled $261 million in 2017. company’s recent success.
Witron has climbed up two ranks to “We are experiencing a huge growth,” Hot on Stöcklin’s trail is 19th-ranked
land in 12th with $635 million in reve- says Andrea Pongolini, vice president of viastore with $152 million, an increase of
nues. A spokesperson says the company sales. “We already have orders for a 2018 8.6% over 2016 revenues.
experienced strong growth on both sides revenue of $252 million.” “We attribute this increase to strong
of the Atlantic and in Asia, and that Bastian Solutions grew 7.4% and held performance in all our markets served,” says
the stronger Euro also contributed to a its 16-place ranking with $233 million. Tom Coyne, president and chief operating
higher dollar value. In Euro, the com- According to Aaron Jones, president, officer of viastore. “The global marketplace
pany achieved 15.5% growth. In dollars, “revenue growth came from several seemed to remain strong. In addition, vias-
Witron’s 2017 revenues are up more areas, but a few key success factors tore has been growing its business in both
than 40%, and its three-year growth rate were growth in our warehouse execu- automated systems and our WMS software
is 87%. tion and warehouse management system business. All in all, 2017 was a very good
Witron has added 1,000 new staff implementations, increased robotic and year, and we expect to see another year of
members in the past four years, accord- mobile robotic systems, as well as the growth in orders in 2018.”
ing to a release, bringing its number of development of composite materials and Last but not least at No. 20, Italy-
employees to more than 2,800 in 2016. advanced control systems.” based System Group (System Logistics,
“The world becomes even more inter- DMW&H (previously Dearborn Mid- Modula) was unable to report revenues
linked,” says Helmut Prieschenk, Witron West Company, which acquired W&H by press time. •
CEO. “This trend is especially notice-
able in the logistics area. Information
and algorithms play a central role; data is Making the list
undoubtedly the decisive resource of the
future. However, digitization may never be
achieved for the sake of digitization itself.
T o qualify for Modern’s Top 20 list, companies must be suppliers of
materials handling systems, not just equipment providers. In addition to
manufacturing at least two major handling system components, a company
Our projects and business models must must also employ full-time staff that designs, installs and integrates materials
pay off at the end of the day.” handling systems.
Grenzebach was unable to report, and These systems include at least two of the following: transportation devices,
storage and staging equipment, picking units, sortation systems, information
its 2016 revenues are enough for the com-
management systems, data capture technologies and other types of handling
pany to retain 13th place.
equipment.
Kardex Group (including both its Rem-
To be considered worldwide suppliers, companies must have a presence
star and Mlog divisions) climbed one spot
in North America and must also be able to report materials handling revenues
to 14th place after 7.1% growth in 2017 to Modern. (Lockheed Martin, for example, is a systems supplier with a North
revenues, which caps off a three-year American presence, but isn’t included in our Top 20 list because they can’t
growth rate of 25%. single out the revenue that comes from materials handling contracts.)
“We enjoyed our best year in Kardex
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2018 Top 20 lift truck suppliers
TOP 20
LIFT TRUCK
SUPPLIERS
GLOBAL MARKET
REACHES NEW HEIGHTS
It’s full steam ahead for the lift truck industry, buoyed globally by
technology advances and strong, emerging economies.
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T
o say the lift truck industry is doing well would be
a gross understatement. After reaching new highs in
2016, sales in 2017 positively obliterated previous
records. Globally, the market for industrial trucks grew by
nearly 16%. That’s double the 2016 growth rate, which fol-
lowed a flat year in 2015.
For companies on Modern’s annual list of the Top 20 lift
truck suppliers, the rising tide lifted their collective 2017
revenues by 21%.
That is not a typo.
When the list’s value posted 7.5% growth in 2016, it
achieved record levels following a flat year. This time, no
amount of variables, currency conversions or other headwinds
can blunt the sharp increase in business. Electric lift trucks
continue to dominate, but Scott Johnson, ITA chairman of
the board and vice president of sales and marketing for Clark
Material Handling, says they were not the only segment to
benefit from the industry’s momentum.
“All classes show positive year-over-year performance,”
Johnson says. “Those who predicted the demise of internal
combustion (IC) products with the advances in electric
products and the rise of lithium-ion and fuel cell prod-
ucts—which are both legitimate technologies, by the way—
still saw double-digit growth in IC classes.”
The growth trend is likely to continue, Johnson says, as a
result of significant advances in the capabilities of lift trucks
and related technologies.
“Certainly I think there’s a caliber of customer out there
looking at the lift truck as an integral part of the operation from
a throughput and cost perspective,” Johnson says. “Today’s
trucks operate more efficiently, have a lower cost of ownership,
and some use fewer parts. A number of lift truck buyers want
to take advantage of the new products out there.”
At home and abroad, Johnson says confidence is high that
the industry will remain healthy for some time.
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“There is a genuine reshoring of a lot of manufacturing, and for a full financial year have included Dematic, the specialist in
there continues to be optimism in board rooms as it relates to automation and supply chain optimization acquired at the end of
continued growth in North America,” he adds. “The first half of 2016. Driven by organic growth and the acquisition of Dematic,
the year was very strong, and I don’t see any major hurdles in the the group achieved new records in the value of order intake and
second half. Economists might suggest it will be softer, but even a in revenue, adjusted earnings before interest and tax (EBIT),
contraction of 5% or 6% would still result in a phenomenal year.” adjusted EBIT margin, and net income.”
Climbing one spot to third place, Jungheinrich grew 11.3%
The big get much bigger in Euro after order intake and units produced increased by 13%.
Breezing past the $10 billion mark to retain the No. 1 ranking, The company released a new walkie stacker, introduced a 5,500-
Toyota Industries Corp. grew 33% to $11.4 billion, selling 263,000 pound capacity pallet truck to the North American product line,
units—10,000 more than in 2016. and increased the capacity for its man-up turret trucks.
A spokesperson for Toyota says the materials handling equip- “Jungheinrich is pressing ahead on its growth path and has
ment market as a whole expanded globally, driven by China, closed the 2017 financial year with a considerable increase in all
emerging countries, the United States and Europe. According key indicators,” says Hans-Georg Frey, chairman of the board of
to the statement, “amid this operating climate, Toyota Industries management of Jungheinrich. “This positive trend is driven by new
strengthened production and sales structures and rolled out new truck business in the core market of Europe and strong growth
products matched to respective markets. In December 2017, in the logistics systems business. Key milestones have once again
Toyota Industries commenced sales of the new ‘Rinova’ reach been achieved on the road to our target of $4 billion in net annual
type electric lift trucks in Japan. These initiatives led to an sales for 2020.”
increase in unit sales of mainstay lift trucks in respective regions.” Jungheinrich products are distributed through Mitsubishi
In addition, U.S.-based Bastian Solutions and Netherlands- Caterpillar Forklift America (MCFA) under a manufacturing and
based Vanderlande Industries Holding joined the Toyota Industries distribution agreement in North America. In October of 2017,
Group in April 2017 and May 2017, respectively, resulting in a net MCFA’s parent company, Mitsubishi Nichiyu, underwent a man-
sales increase of 294.9 billion yen, or 30%. agement integration with UniCarriers, which it acquired in 2015.
Joining the more than a dozen top companies that grew by dou- As a result, No. 4 is now called Mitsubishi Logisnext, which
ble digits, No. 2 Kion Group’s revenues grew 15% in U.S. dollars, grew 12.5% to $3.8 billion. The company sold 5,000 more units
and 8.2% in Euro. It sold 201,000 units in 2017, a 13% increase, in 2017 than in 2016 for a total of 113,000.
and released five new lift trucks adapted to the U.S. market at Mitsubishi Forklift and Cat released Tier 4 Final diesel pneu-
Modex 2018. Modex saw a joint showcasing of Dematic, Linde matic tire trucks, and UniCarriers Americas introduced a pneu-
and Baoli products. Kion also increased lithium-ion offerings with matic internal combustion diesel forklift.
2- and 3-ton capacity models. An exclusive, global, strategic part- In the year marking its 25th anniversary, MCFA expanded its
nership with EP, as well as a minority interest, was agreed in Janu- 40-acre Houston-based manufacturing facility as well as its prod-
ary 2018, with a focus on entry-level warehouse equipment. uct offerings to support customers throughout North, Central and
“Achieving record results in 2017, the Kion Group has set a South America. Following a new regional distribution center in
course for further profitable growth by rolling forward its corpo- Dallas, MCFA now stocks almost $60 million in total parts inven-
rate strategy,” says Michael Hauger, senior vice president of cor- tory at five regional parts facilities across the United States. In
porate communications. “This was the first time that the figures August of 2017, MCFA and Jungheinrich announced the grand
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4 Mitsubishi Logisnext Co., Ltd. 3 3407 3833 12.5% UniCarriers, Mitsubishi, CAT, TCM, Atlet,
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7 Anhui Forklift Truck Group Co., Ltd. 7 928 1347 45.2% Heli, CHL
Class 2, Lift Code - 2 Class 2, Lift Code - 3 Class 2, Lift Code - 4 Class 2, Lift Code - 6 Class 3, Lift Code - 1
Order Picker Reach Type Outrigger Side Loaders, Turret Trucks, Low Lift Pallet and Platform Low Lift Platform
Swing Mast and Convertible (Rider)
Turret/Stock Pickers
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ITA class of trucks manufactured
Aichi, Japan x x x x x
Wiesbaden, Germany x x x x x
Hamburg, Germany x x x x
Kyoto, Japan x x x x x
Cleveland, Ohio x x x x x
Hangzhou, China x x x x x
Tokyo, Japan x x x
Shanghai, China x x
Hangzhou, China x x x x
Monaghan, Ireland x x x x x
Hyvinkää, Finland x
Fulda, Germany
Cravinhos, Brazil x x
Mumbai, India x x x x x
Class 3, Lift Code - 2 Class 3, Lift Code - 3 Class 3, Lift Code - 4 Class 3, Lift Code - 5 Class 3, Lift Code - 6
Low Lift Walkie Pallet Tr a c t o r s ( D r a w Bar Low Lift Walkie/Center Control Reach Type Outrigger High Lift Straddle
Pull Under 999 lbs.)
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2018 Top 20 lift truck suppliers
opening of a new joint venture, Industrial Components of Hangcha climbed one spot to finish No. 8 after growing
Texas (ICOTEX). Located in Conroe, Texas, ICOTEX’s revenues by nearly 30% in local currency. It produced 28%
new 71,000-square-foot facility will manufacture indus- more units than in 2016 for a total of 105,091. According
trial components. to a spokesperson, 2017 is the first full calendar year after
In fifth place, Crown Equipment crossed the $3 billion mark Hangcha Group was listed on the Shanghai Stock Exchange
after growing almost 6%. in China. The company then entered the financial leas-
Sixth-place Hyster-Yale Materials Handling shipped 10% ing industry by acquiring shares in Shenzhen International
more units in 2017 than in 2016, for a total of 93,400. This Financial Leasing Co. It also invested in a related research
accompanied a more than 12% growth in revenue to finish and development firm to boost accessory manufacturing
at $2.9 billion. A spokesperson says the increase was mainly capacity. “Thanks to in-depth promotion of national strategies
attributable to higher unit and parts volumes and a decrease and initiatives including Supply Side Reform by the Chinese
in deal-specific pricing in the lift truck business compared to government, the Belt & Road Initiative, and Made in China
2016. Revenue growth in the Americas was primarily a result
of increased unit shipments of higher-priced trucks, particu-
ITA’s lift truck classes
larly new Class 5 IC engine standard truck and increased sales The Industrial Truck Association (ITA, www.indtrk.org)
of higher-capacity, 3.5- to 8-ton Class 5 trucks, as well as Class has defined seven classes of lift trucks, or forklifts,
1 and Class 2 electric trucks. which are defined by the type of engine, work environ-
Although it is not relevant to 2017 revenues, in December ment, operator position and equipment characteristics.
2017 Hyster-Yale announced it was entering into an agree- Forklift classes include:
ment to acquire a majority ownership stake in Zhejiang Maxi- • Class 1: electric motor trucks with cushion or
mal Forklift Co. pneumatic tires
• Class 2: electric motor narrow aisle trucks with
Maximal, a privately held, Chinese OEM for utility and
solid tires
standard lift trucks, was founded in 2006 and employs nearly • Class 3: electric hand trucks or hand/rider trucks
600. It is involved in the design, manufacture, service and with solid tires
distribution of Class 1 electric and Class 5 IC counterbal- • Class 4: internal combustion engine sit down rider
forklifts with cushion tires, suitable for indoor use on
anced utility and standard platforms, and Class 2 and Class
hard surfaces
3 electric warehouse products in the local China and global • Class 5: internal combustion engine sit down rider
markets under the Maximal and Samuk brands. Maximal also forklifts with pneumatic tires, suitable for outdoor use
designs and produces specialized products in the port equip- on rough surfaces
ment and rough terrain forklift segments. • Class 6: electric or internal combustion engine
powered, rider units with the ability to tow (rather than
Anhui Forklift held on to seventh place, but posted the sec- lift) at least 1,000 pounds
ond-highest growth rate on the list. It produced 121,033 units, • Class 7: almost exclusively powered by diesel en-
40% more than in the previous year. Its 2017 revenues of $1.3 gines with pneumatic tires, these units are suitable for
billion represent a 45% increase in U.S. dollars. rough terrain and used outdoors.
Since primarily classes one through five are used in
In addition to its primary brand Heli, Anhui in 2017
materials handling applications inside the four walls,
released the new brand CHL, which is geared primarily for Modern has only specified those on our supplier table.
emerging markets.
Class 3, Lift Code - 7 Class 3, Lift Code - 8 Class 4, Lift Code - 3 Class 5, Lift Code - 4
High Lift Counterbalanced Low Lift Walkie/Rider Pallet Fork, Counterbalanced Fork, Counterbalanced
(Cushion Tire) (Pneumatic Tire)
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2025, moderate recovery was seen in the domestic manufac- loading equipment and straddle carriers led to a 14% increase in
turing industry, and the potential of domestic demand was revenues. A representative cited an uptick in the house building
further released,” the Hangcha spokesperson says. sector and manufacturing companies using Combilift’s high-
In ninth place, Clark Material Handling Company grew 5.5%. density solutions to grow output without having to increase the
Clark introduced the new S-Series IC forklifts, which it describes size of their facilities.
as the result of a “clean sheet” design initiative featuring collabora- After debuting on the list in 17th place, Manitou gained a
tion among engineering, sales, marketing and end users across spot to No. 16 following a 45% revenue increase.
North America, Asia, Australia and Europe. After three years of “Our masted forklift sales have grown significantly in
global design input, prototyping and field testing, the S-Series is 2017 thanks to our efforts to develop our geographical
produced in LPG, dual fuel and diesel configurations. presence while introducing solid new products,” says Jean-
“Clark continues significant investments in its global manu- Pierre Guerand, vice president of global industrial sales and
facturing platforms,” says Scott Johnson, vice president of sales development at Manitou. “This allowed us to beat market
and marketing. “These investments ensure the company is stra- trends in our key markets. In 2018 we are investing in
tegically supporting its overall international goals and objectives. launching our industrial forklift line into the North Ameri-
The resumption of high-volume IC production in Lexington, can market and are expecting a successful year. Manitou
Ky., has led to an increase in hiring for critical positions includ- Group is committed to significantly grow its presence in the
ing manufacturing and engineering. Global shipments of the global forklift business.”
S-Series represent a significant milestone for the company.” Konecranes was unable to report revenues by press time, so
Rounding out the Top 10 at No. 10, Doosan grew 21% to end its 2016 revenues of $185 million have been carried over. As a
2017 just shy of $1 billion. A spokesperson cited significantly result, it has fallen from No. 15 to No. 17.
increased business in advanced markets such as North America At No. 18 is Hubtex, which makes special purpose vehicles
and Europe, as well as very strong business in the Korean market. including multi-directional sideloaders, diesel or LPG four-way
sideloaders, order picking systems, glass transport systems and
Growth across the board reach trucks. It sold 617 units, up about 5% from 589 in 2016.
After growing 5.4%, Komatsu retained the 11th spot. Just below According to Michael Röbig, marketing manager, the increase in
it, Hyundai was unable to report revenues by press time and again sales is based on two primary factors.
finishes in 12th place. “In a largely stable economic environment, our newly devel-
Lonking Forklift climbed from No. 16 to No. 13 after more oped multidirectional forklift ‘Flux’ and our four-way sideloader
than doubling revenues. The company sold 50,000 units in ‘Maxx’ products were able to convince our customers,” Röbig
2017, up 25% from 40,000 in 2016. says. “In addition, the sales of special-purpose vehicles has
EP Equipment, makers of Big Joe pallet trucks, stackers and continued to increase.”
orderpickers, reported revenues of $236 million, an increase Brazil-based Paletrans was unable to report revenues by press
of 18%—enough for 14th place. According to a spokesperson, time and took the No. 19 spot.
units surged to just more than 50,000 for the year based on the At No 20, India’s Godrej & Boyce sold about 3,000 units
strength of new product launches in the Class 3 segment. in 2017 after introducing a Class 2 reach truck and new
At No. 15, Combilift sold 5,030 units, an increase of 680. range of Class 4 and 5 light diesel trucks with capacities of
Sales of the company’s range of four-directional forklifts, side 1.3 to 3 tons. •
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2018 Top 20 ADC suppliers
2018
TOP 20 W hen he looks at the performance of automatic
identification and data capture (AIDC) solu-
tions providers over the last year, David Krebs,
AUTOMATIC
vice president of VDC Research’s enterprise mobility and
connected devices, sees two different stories developing.
One involves the development of the AIDC solutions them-
selves, and the other centers on the rapid growth of mobile
SUPPLIERS
held rugged mobile computers; vehicle-mounted com-
puters; handheld and stationary bar code scanners; and
thermal label printers), Zebra Technologies “really hit its
stride in terms of product development and performance
in 2017,” says Krebs. As proof, he points to the company’s
The lines are blurring in the automatic year-over-year 4.7% growth (from $2.13 billion in 2016 to
data capture market where, thanks $2.23 billion last year), which incorporates the revenues
to advancements in smart phone of both Motorola Solutions and Psion.
technology, opportunities are opening Krebs says there’s also been “a lot of consolidation at
up to a larger swath of companies that the top,” with Zebra and Honeywell working to establish
need advanced technology to handle their footholds in the market through mergers and acqui-
their single-item fulfillment and other sitions (M&A). “There’s been some fairly aggressive M&A
e-commerce-related demands. play going on,” says Krebs. In fact, he says the market’s
larger players have basically consolidated the entire spec-
trum of Auto-ID (both stationary and handheld data cap-
ture scanning) and the printing/output technology (label-
ing and the associated mobile technologies).
“Thanks to the consolidation trend,” says Krebs, “both
Zebra and Honeywell have positions in what we see as
BY BRIDGET MCCREA, EDITOR AT LARGE
being some of the primary hardware categories that make
up today’s AIDC market.”
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Top 20 ADC suppliers
2017 2016
Revenues Revenues Year Over
2017 2016 (USD, in (USD, in Year North American Bar code Handheld Stationary Mobile
Rank Rank Company Name millions) millions) Change Headquarters Web site printers scanners scanners RFID computers
*Includes only hardware revenues for handheld rugged mobile computers, vehicle mounted computers, handheld and stationary
bar code scanners and thermal label printers. Excludes RFID, printer consumables, accessories and services.
Source: VDC Research
mmh.com To p S u p p l i e r s o f 2 0 1 8 17
2018 Top 20 ADC suppliers
CAGR
2016 2017 2021 2016-2021
ables) hit $2.85 billion last year, up from attaching our horse to any one wagon; each relies on the next to succeed. Add
$2.76 billion in 2016. we’re going to split our risk,’” Krebs technological innovation and changing
By 2021, VDC expects that number explains. “If the market wants one piece customer demands to the mix and the
to reach $3.19 billion, representing a 3% of hardware for Microsoft and a differ- environment becomes pressurized very
compound annual growth rate (CAGR) ent one for Android, then Honeywell will quickly. “There’s a tremendous amount
between 2016 and 2021. Bar code hard- give them both.” of tension right now in the partner com-
ware sales are also on the rise, having The problem, says Krebs, is that the munity core,” says Krebs, who has seen
grown from $3.38 billion last year to market didn’t necessarily know what it some of the sector’s larger providers
$3.51 billion in 2017. By 2021, VDC wanted and still had to be convinced working to ease those tensions and make
expects this segment of the market to of Android’s viability for specific appli- it easier to do business with them.
reach $4.30 billion, representing a 5% cations. This required leadership and Running his finger further down the
CAGR between 2016 and 2021. direction on the part of AIDC providers list of top AIDC providers for 2017,
Combined, the estimated global ship- like Honeywell, which continues to work Krebs points to Panasonic as one of the
ments of AIDC hardware is expected to through these and other mobile-related up-and-coming players in the mobile
reach $7.5 billion by 2021, for a 4.1% issues. “All in all,” says Krebs, “we saw space. With AIDC sales of $61 million
CAGR over the same five-year period. a fairly dramatic development in terms for 2017 (up from $51 million the year
“There’s an ongoing transition to mobile of year-over-year progress for two of the before), the company saw its mobile
underway. In the handheld space, for industry’s two biggest players.” sales increase by 21.1% during that
example, we’re seeing a ‘modernization’ 12-month period. “Panasonic is obviously
trend and a migration away from Windows A partner-driven ecosystem a giant when it comes to its traditional
and over to Android,” Krebs points out. Joining Zebra and Honeywell at the top of Toughbook business (i.e., notebooks and
“People made some early bets on Micro- this year’s AIDC list are Datalogic, which tablets),” says Krebs. “But in the hand-
soft leaving the industry and moved over to posted a 0.4% drop in revenues over 2016 held space, they’re starting to get it.”
Android,” he continues. That move would (from $556 million to $554 million); That momentum continued into the
prove to be expensive and time-consuming SATO, which saw its revenues increase first half of 2018, and Krebs expects
for companies, Krebs notes, in terms of the by 9.7% (from $200 million to $219 mil- more traction from Panasonic on the
software investments and competencies lion); and Toshiba TEC, whose revenues mobile front in the coming months. “We
they would need to develop. grew by 9.5% (from $158 million to $173 anticipate Panasonic’s share of the AIDC
Honeywell, which saw its 2017 rev- million). Rounding out the list of top market to jump quite a bit, both in some
enues (including revenues of LXE, Inter- 10 are Denso Wave, Cognex, SICK AG, of its legacy markets, like Japan, and in
mec and Datamax-O’Neil) drop by 30.6% TSC Printers and Casio. North America,” Krebs predicts, “where
to $709 million (from $1.02 billion), Calling the AIDC market a “partner- large corporations want and desperately
took a different tack. “They said, ‘Well, driven ecosystem,” Krebs says the inter- need to have more options than just
we can’t read the tea leaves, so we’re not dependency among its key players means Zebra and Honeywell.”
18 To p S u p p l i e r s o f 2 0 1 8 mmh.com
Faster, more accurate data capture
Examining broader AIDC market trends,
Collecting the data
T his is Modern’s 16th-annual look does not include resellers, systems inte-
Krebs says the shift toward using camera- grators or other companies that do not
at the leading manufacturers of
based technologies is in full swing. “We’re ADC hardware and solutions. Because manufacture ADC hardware. Since our
seeing migration at the point of sale (POS) the industry includes public and private readers are primarily focused on supply
to using image-based/camera-based tech- companies, this is the 10th year that chain solutions, we do not include com-
nologies,” he explains, “not only to be able VDC Research Group compiled our data. panies whose primary focus is the retail
to read QR codes off cell phone screens, Since they are covering this technology checkout counter or non-industrial set-
but also for traceability initiatives.” In every day, they are the closest to this tings, like hospitals, libraries or resorts.
the pharmaceutical industry, for example, market. To make our list, companies must Nor do we include companies that only
camera-based technologies are being used sell in North America, though the chart manufacture consumables like bar code
includes worldwide revenues. Modern labels and RFID tags.
for serialization and to ensure high lev-
els of visibility for products as they move
across the supply chain. together to drive the need for not only Foundationally, the AIDC market
“Soon, we’ll see that usage cross over automation, but also for greater, more has grown beyond these needs—a real-
into other product categories,” Krebs accurate and faster data capture to sup- ity that pushed some of its larger play-
predicts. “Anytime a company is dealing port those developments.” ers to acquire multiple smaller com-
with a perishable item (i.e., for sell-by panies over the last one or two years.
dates) or one that falls under a high Opening up AIDC to The explosion in smart phone usage,
degree of regulatory influence, you’re a larger audience for example, has pushed device manu-
going to see more camera-based AIDC As the unwired fulfillment environment facturers to make products that can
being used.” This technology provides continues to come into focus, and as also be used in industrial settings. And
the highest value when machine vision warehouse and DC managers are being while these devices may not suffice in
and data capture converge. In the future, asked to do more with less while meeting the cold chain environment, they do
for example, Amazon Go’s concept stores customers’ ever-evolving demands, the offer good wireless functionality, bat-
could potentially use camera-based tech- global AIDC market is expected to grow tery life and memory options. They
nology to identify products without the exponentially. Concurrently, the defini- also have sophisticated cameras, Krebs
need for bar codes. tion of AIDC and mobility will continue adds, and software that transforms the
“This isn’t really viable yet, but in to morph right along with the market, devices into capable scanners.
the future—when sensors and cameras making it more difficult to discern among “You won’t see someone using a
cost even less, and are miniaturized hardware and software that was once cat- smart phone to scan hundreds of items
even further—the technology could egorized into distinct buckets. in a shift, but they’re good for the
enable a lot of different types of appli- Today’s rugged mobile comput- occasional scan,” Krebs notes, “and
cations and use cases,” Krebs says, who ers, for instance, are being built with can serve as an effective alternative to
points to collaborative, vision-guided advanced, integrated data capture something that Zebra, Honeywell or
robotics as another advanced technology capabilities. “Both Zebra and Honey- Datalogic might be selling.” This, in
that holds solid potential in the mobile well are designing purpose-built mobile turn, opens up the mobile market to
warehouse of the future. computers for use in a variety of envi- smaller organizations that can’t afford
“We’re seeing continued pressure in ronments,” Krebs says, “when their real to invest in purpose-built devices.
retail distribution for faster fulfillment claim to fame is designing equipment “The lines are blurring,” says Krebs,
speeds and greater needs for accuracy, to withstand harsh environments (e.g., “and the fact that you can get a basic
namely due to the item-level fulfill- those focused on long battery life, smart phone for a couple of hundred
ment being driven by e-commerce,” wireless performance and operating in bucks has basically opened up the mar-
says Krebs. “These forces are all coming large campus-type environments).” ket to a larger audience.” •
mmh.com To p S u p p l i e r s o f 2 0 1 8 19
MODERN information management
TOP 20
WAREHOUSES
Modern’s look at the largest 3PL and refrigerated
facilities by size shows continued strength
for both markets.
A
BY JOSH BOND, SENIOR EDITOR
look at the third-party logistics strong sees 3PLs moving toward automated
(3PL) market shows that e-com- load acceptance as they continue to digitize
merce remains the driving force load management. In the coming years, he
behind growth and change and predicts it will become increasingly com-
this pattern is expected to continue, accord- mon for shippers to list loads electronically.
ing to 3PL consultancy and market research Pre-qualified carriers can then access the
firm Armstrong & Associates, who compiles list and accept a load. The load will still be
the list of Top 20 North American 3PLs. tendered in the real world, but the transac-
And, although Amazon is synonymous tion will be maintained as part of that soft-
with e-commerce, it does not appear on the ware, Armstrong says, which will track the
list of the Top 20 North American 3PLs. The load from end to end at all critical stages.
companies on this list, unlike the notori- Before long, he suggests, as much as
ously secretive Amazon, have either provided 80% of loads will be handled that way, as
square footage information or enough public compared to the current 20% to 30% at
information for Armstrong & Associates to best. The upshot for transportation manag-
make a reasonable estimate. Nevertheless, ers, Armstrong adds, is that automated load
Dick Armstrong, chair of Armstrong & Asso- management will enable each person to
ciates, says Amazon wields plenty of influ- effectively handle four to five times as many
ence on the 3PL market. loads as they are now.
“We’re tracking them, and there’s no “Small brokerage companies have a lot
doubt about it: They are in the 3PL busi- of hands-on work, lots of Excel spread-
ness in a lot of what they do,” he says. sheets, whereas bigger operations use
“Anywhere they want to move, they’re the electronic load management to automate
800-pound gorilla. They just move there. better than 90% of the less-than-truckload
Everyone is talking about e-commerce now, business,” Armstrong says. “Companies
and Amazon has moved the market a lot in above $20 million in gross revenue will be
that direction with things like home deliv- climbing this path, but those below will
ery and same-day delivery.” have a lot of difficulty, and I see a lot of
From an operations perspective, Arm- them disappearing.”
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MODERN information management
mmh.com To p S u p p l i e r s o f 2 0 1 8 21
Top 20 warehouses
Warehouse Warehouse
square square Number of Number of
2018 2017 Third-party logistics feet, 2018 feet, 2017 Percent warehouses warehouses
Rank Rank provider (3PL) Headquarters (millions)* (millions)* change (2018) (2017) Website
DHL Supply Chain Westerville,
1 1 119.0 119.0 .0% 417 673 exe.com
North America (Exel) Ohio
Greenwich,
2 2 XPO Logistics 83.7 81.6 2.6% 400 392 xpo.com
Conn.
Ryder Supply Chain
3 3 Miami, Fla. 50.0 43.7 14.4% 207 246 ryderscs.com
Solutions
GEODIS North Brentwood,
4 4 42.9 38.2 12.3% 168 150 geodis.com
America (OHL) Tenn.
Cherry Hill,
5 7 NFI Logistics 41.5 33.5 23.9% 130 100 nfiindustries.com
N.J.
Cranberry
7 6 FedEx Supply Chain 35.4 34.5 2.6% 127 129 supplychain.fedex.com
Township, Pa.
8 9 Lineage Logistics Irvine, Calif. 26.0 26.0 .0% 114 114 lineagelogistics.com
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Armstrong notes greater diversity Top 20 North American bled to 41.5 million square feet across
as companies expand their technologi- warehouses total 130 warehouses, 30 more than last year.
cal capabilities as well as geographic square footage The gains were enough to leapfrog sixth-
coverage. place Americold, which remains the top-
Millions of
“The building and development Year square feet % change ranked cold chain specialist.
of new warehouses has been pretty 2018 652.9 +3.7% After FedEx’s 2015 acquisition of
robust,” he says. “But in Southern 2017 633.8 +4 %
previous fourth-place GENCO in 2015,
California, New Jersey near New York, it now reports as FedEx Supply Chain
2016 608.5 -0.4 %
around Dallas Fort Worth, in those and manages 35.4 million square feet,
2015 610.7 +3.3 %
areas it is really difficult to find space. enough for seventh place.
It’s a tight market.” 2014 591.2 +4.4 % After debuting on the 2016 list in
2013 566.5 +3.6 % ninth place with 26 million square feet,
The Top 20 3PLs 2012 547 +0.7 % cold storage provider Lineage Logistics
The annual ranking of the Top 20 3PL 2011 543 +5.6 %
has not yet reported a change in square
warehouses is supplied to Modern by footage. However, following an adjust-
2010 514 -2.6 %
Armstrong & Associates, a consulting ment to Kenco’s square footage, it has
2009 528 +4.6%
firm specializing in logistics outsourcing. exchanged ranks with than company to
Source: Armstrong & Associates and
Each company’s square footage Modern Materials Handling
finish in eighth place.
consists of physical locations in North DSC Logistics grew square footage by
America, as opposed to total space In late 2015 XPO acquired Menlo Logis- nearly 9% to round out the Top 10 with
under management by offices based tics, which had previously ranked 14th 25 million square feet.
in North America. The list’s combined on the list with 21 million square feet. DB Schenker reported the same space
total square footage increased by 3.7%, XPO also acquired former third-place and warehouses reported since 2016 to
following last year’s 4.8% increase. finisher Norbert Dentressangle, which claim 11th place.
In addition, reports submitted to in turn acquired Jacobson Companies in Penske Logistics climbed three spots
Armstrong by listed companies some- mid-2014. XPO’s combined space under following a 27% increase in square foot-
times include forwarding locations, management now stands at 83.7 million age and now occupies 12th place with
transportation logistics or smaller square feet. 21.4 million square feet.
warehouses, which Armstrong & Associ- “In general, there’s not a lot of move- CEVA Logistics reported figures
ates work to identify and remove from ment in the Top 20, but we’ll have to identical to last year’s, but given the
consideration. Instead, they ensure the see what XPO does because they keep close competition in the lower half of
list focuses specifically on warehous- buying and could encroach on DHL,” the list, it is now ranked No. 13. CMA
ing facilities of 100,000 square feet or Armstrong says. CGM recently announced its intent to
more. This vetting is an ongoing process Ryder Supply Chain Solutions reflects acquire CEVA, which Armstrong says
and contributes to changes in the num- a 14% increase to 50 million square feet, will likely be incorporated within its
ber of locations even as square footage following last year’s 11% increase, to ship line company.
might remain unchanged. retain third place. “CEVA does about 750,000 contain-
DHL Supply Chain North America In 4th place, the French shipping ers a year, which is a big plus for CMA
(Exel) retains its No. 1 spot on the company Geodis reflects the 2017 CGM,” Armstrong says. “There is overlap
list with 119 million square feet, acquisition of OHL, which ranked between the two companies but CMA
level with last year following a 3.5% seventh on the 2016 list. The company CGM will really benefit from having
increase in 2017. The change in the reported flat square footage and ware- CEVA involved, and CEVA will benefit
number of warehouses is a result of house totals last year, but posted 12% from being owned by somebody.”
ongoing revisions to DHL’s list of gains on the latest list. Despite a modest increase, Saddle
qualified locations. Three years ago, fifth-place NFI Creek fell to 14th, followed by UPS,
In second place is XPO Logistics, Logistics reported 23 million square feet whose numbers—like the next three
which first appeared on the 2016 list. of capacity. Since then, it has nearly dou- companies on the list—are unchanged.
mmh.com To p S u p p l i e r s o f 2 0 1 8 23
Top 20 warehouses
IARW North American Top 25 List and 10 11 Congebec Logistics, Inc. Canada 49.7 49.70 0.0%
a list of the largest operators in Latin 11 12 Hanson Logistics U.S. 43.8 43.80 0.0%
America as well as Europe, reflecting 12 13 Conestoga Cold Storage Canada 42.9 42.90 0.0%
the strength of the cold chain in both 13 14 Zero Mountain, Inc. U.S. 38.3 38.30 0.0%
regions. The lists are determined by 14 15 Confederation Freezers Canada 29.7 29.70 0.0%
total capacity of temperature-controlled Trenton Cold
15 16 Canada 28.3 28.30 0.0%
Storage, Inc.
space.
16 19 Seafrigo Coldstorage U.S. 26.4 23.10 14.3%
IARW members currently own or
17 17 MTC Logistics U.S. 25.2 25.20 0.0%
operate 4.98 billion cubic feet (141.1
Nor-Am Cold
million cubic meters). A total capacity of 18 18 U.S. 25.2 25.20 0.0%
Storage, Inc.
56.7 million cubic feet was added to the NewCold Advanced Cold
19 N/A U.S. 25.0 n/a n/a
Global Top 25, which was an increase of Logistics
3% on average per Top 25 company. 20 20
Midwest Refrigerated
U.S. 21.8 21.8 0.0%
Services, Inc.
Companies worldwide reported
Source: International Association of Refrigerated Warehouses 2,744.30 2,671.10 2.7%
increased capacity and several new com- (IARW)
panies joined IARW in the past year.
• Latin America increased by 24.88 ates 664.65 million cubic feet. The Latin improved value-added services.”
million cubic feet. American Top 20 operates 304.41 mil- GCCA membership includes 1,214
• Europe Top 10 increased by 47.82 lion cubic feet. temperature-controlled facilities and
million cubic feet. “As members align their strategic members in more than 80 countries.
• North America increased by 63.24 focus with protecting and enhancing their Warehouse members offer a range of
million cubic feet. customers’ brands, their business has logistics solutions, including storage,
• Global has increased by 63.24 mil- grown,” said GCCA president and CEO transportation, processing, blast freez-
lion cubic feet. Corey Rosenbusch. “This has resulted in ing, exports and more. A complete list-
The Global Top 25 currently oper- increased capacity as members expand ing of all warehouse members can be
ates 3.87 billion cubic feet. The North and build new facilities to address their found in the Global Cold Chain Direc-
American Top 25 operates 2.83 billion customers’ immediate and future distribu- tory, which is available for free online
cubic feet. The European Top 10 oper- tion needs, while also offering new and or as a mobile app. •
24 To p S u p p l i e r s o f 2 0 1 8 mmh.com
Bastian Solutions
For a complete vision, let our experts guide you through intelligent system design and the
selection of the right automation for your operation.
While the top of the list remains stable, up-and-comers are mixing up the software
landscape with Cloud capabilities that traditional vendors are working to replicate.
BY JOSH BOND, SENIOR EDITOR
26 To p S u p p l i e r s o f 2 0 1 8 mmh.com
Top 20 supply chain management software suppliers
SCM (SCE, SCP, Procurement) Total Software Revenue
Manhattan
5 218.8 224.9 x x x manh.com
Associates
Descartes Systems
6 159.2 221.0 x descartes.com
Group
mmh.com To p S u p p l i e r s o f 2 0 1 8 27
2018 Top 20 supply chain software suppliers
they can.” 8%) and JDA ($544 million, up 4 Manhattan Associates 197.8 205.1
14%) hold firm. 5 Infor Global Solutions 149.6 174.2
Inside the numbers The remainder of the list 6 WiseTech Global 91.4 132.4
Market leaders in the overall category of continues jockeying for ranks 7 JDA Software 107.1 125.0
supply chain management continued to with each separated from the 8 BluJay 93.0 112.2
dominate the market in 2017, with the top next by a few million dollars.
9 Epicor 88.4 90.4
five providers accounting for 49% of the Nine of those companies posted
10 HighJump 77.2 81.5
total market. gains of 20% or greater, includ-
The individual market segments also ing five that grew by about 40%. Total 2,028.5 2,287.6
Revenue listed in millions of USD. Source: Gartner
posted impressive gains. Supply chain
execution systems, which includes WMS Making the List
and TMS, grew 13% to $3.87 billion. Once This is the 17th time Modern has reported point is Gartner’s annual list of the top
again, the top five providers accounted for on the supply chain software market from a supply chain management providers. It is
nearly half of the total. The market for sup- business standpoint since 2002. Although a numbers game and not a popularity con-
test. The rankings are based on Gartner’s
estimates of a provider’s annual sales for
Highlights from Gartner’s forecast 2017. Meanwhile, Gartner’s estimates are
• Hybrid SCM environments with co-existing Cloud and on-premises applications
based on revenues related to supply chain
are becoming more commonplace, with multi-enterprise applications, such as informa-
management software and not a company’s
tion hubs and supplier networks, dominating the move to Cloud.
total revenues.
• Investments in additional supply chain functionality will increase 15% through
2021 as businesses seek applications that will enable competitive advantage in a digital Admittedly, this is an imperfect science.
era through speed of understanding and adaptive response to environmental signals. Gartner, for instance, strips out hardware
• The expanded availability and choice of supply chain execution (SCE) Cloud of- sales from its estimates. What’s more, Gart-
ferings will act as a catalyst for growth, especially within mid-size businesses. Overall ner does not follow the warehouse control
Cloud adoption across all SCM technology categories will increase from less than 15% systems (WCS) or manufacturing execution
to more than 22% of organizations by 2021, with some areas (such as procurement, system (MES) spaces for the purposes of its
global trade and transportation) exceeding this adoption percentage. chart. Finally, it does not include SCM sup-
• SCM providers can differentiate themselves from competitors and drive revenue pliers that focus on specific verticals. That
growth by fusing technologies such as mobile, machine learning, in-memory technol-
said, it is an apples to apples comparison to
ogy, multi-enterprise visibility and Internet of Things (IoT) into new SCM practices.
previous years. •
28 To p S u p p l i e r s o f 2 0 1 8 mmh.com
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