This year’s annual survey of the world’s leading systems suppliers welcomes the return of all Top 20 companies to the list and two newcomers. How does that math work you ask? As a result of 2009mergers and acquisitions, there is a 100% return rate, albeit it in different configurations and under different company umbrellas.

While we’re seeing familiar companies, we’re not seeing familiar growth rates and revenue increases. For the most part, sales were down. In fact, of the Top 20 systems suppliers, 17 reported a decline in revenue, one remained even and just two companies reported increases.

With revenue down, obviously this year’s totals are down. Last year, Modern reported that the combined revenue for all of the Top 20 systems suppliers in 2008 was more than $15.3 billion and companies had to report at least $219 million to make the cut. This year, however, the total combined revenue for the Top 20 systems suppliers in 2009 was $11.9 billion and the cut off dropped to $140 million.

Regardless, these are still formidable figures and numbers that should please the companies and their stakeholders, especially considering what happened to the global economy last year. So, what happened with materials handling systems suppliers last year and how do they stack up now?

Who’s on first
Once again, Schaefer Systems International and Daifuku Co. retained the top two spots, respectively. Schaefer reported sales revenue for 2009 of $2.63 billion, which included the integration of Salomon Automation, a leading European systems integrator that joined the Schaefer group last year.

They also reported that comparable sales volumes were down when compared to 2008 due to exchange rate fluctuations and a substantial reduction in raw material cost for steel products.

Daifuku also saw sales drop last year. They went from $2.41 billion in 2008 to $1.76 billion in 2009. But even with that 26% decline, they were still runner up on this year’s list, coming in $760 million ahead of No. 3 Dematic. Dematic’s 2009 revenue held steady at $1 billion, proving that flat can sometimes be
a good thing.

As reported earlier, only two of the Top 20 systems suppliers reported increased revenue in 2009. Viastore, headquartered in Stuttgart, Germany, joined Modern’s Top 20 for the first at No. 20, reporting $140 million in 2009, which translated to a 16.7% increase over its 2008 revenue.

Combining forces
Beumer jumped from No. 14 in 2009 to No. 9 this year, with a 25% increase from $380 million to $476 million, which was due in part to its acquisition of the Danish company Crisplant, which specializes in sortation technology.

Another notable acquisition last year was Swisslog’s (No. 6) purchase of EVOmatic Engineering Solutions, an Austrian company that supplies automated technologies such as mini-loads cranes, load handling devices and shuttle systems. Swisslog’ says its goal is to bolster its competitiveness in the area of light goods logistics.

Mecalux executed its purchase agreement on UFC Interlake Holding Co., United Fixtures Co., Interlake Material Handling and Conco-Tellus and changed the name of its American division to Interlake Mecalux. As a result, Interlake, which ranked No. 17 on Modern’s list last year, is combined with Meculux at No. 7.

Kardex AG of Switzerland, which ranked No. 10 last year, acquired the assets of U.S. competitor Kardex Systems Inc, which included the Kardex brand in the U.S., a production site in Lewistown, Pa., and a sales organization with a broad base in the North American market. Now known as KardexRemstar in the U.S., the company continues to hold on to the No. 10 ranking.

Intelligrated, which was not on Modern’s Top 20 list last year, acquired the North and South American operations of FKI Logistex (No. 7 last year) in June of 2009. So, while we don’t see FKI listed individually this year, they’re part of Intelligrated in the No. 15 position this year.

On the divestiture side, Columbus McKinnon (No. 11) sold certain assets within its American Lifts business to Autoquip Corporation in October of 2009, which is reflected in its revenue report going from $635 million last year to $400 million this year. Even so, the company held on to its No. 11 ranking.
on the horizon Predictions from professionals in a number of segments of the materials handling industry call for slow but steady growth in 2010.

For example, last month Modern ran our annual Industry Outlook in which we quoted Materials Handling Industry of America CEO John Nofsinger as saying, “Going into 2010, I anticipate progressive, continued, gradual growth. I do not expect to see the industry ramping up significantly into double digit growth in 2010, but growth is growth and up is up.”

Modern will continue to keep an optimistic eye on the market. We’ll be watching companies like Wynwright that reported $182 million in revenue in 2008. We’ll also keep tabs on System Logistics that merged with Diamond Phoenix Corporation last year. The company’s combined revenue in 2009 was an impressive $135 million, but just shy of putting them on the Top 20 list.

As the industry picks up speed, anything is possible in 2010.

Making Modern’s list
To qualify for Modern’s 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 must also employ fulltime staff that designs, installs and integrates materials handling systems.

These systems include at least two of the following: transportation devices, storage and staging equipment, picking units, sortation systems, information management systems, data capture technologies and other types of handling equipment.

To be considered worldwide suppliers, companies must have a presence in north america and must also be able to report their materials handling revenues to Modern. (lockheed Martin, for example, is a systems supplier with a north american presence, but isn’t included in our top 20 list because they can’t single out the revenue that comes from materials handling contracts.)