Building on the FKI Logistex/Pinnacle merger

By Staff -- Modern Materials Handling, 10/1/2000

Just a few months after the acquisition of Pinnacle Automation by FKI Logistex, president Dave Martin says "the process is going better than expected. And that's probably because the cultures of both companies were already customer driven and that makes it easier. People want to make changes that will further benefit the customer."

Martin says orders this year are up 70%, putting FKI Logistex on a $1 billion annual run rate. He attributes the surge in sales to the strength of the distribution channels of the combined company and early synergies of the merger.

Martin is also looking ahead to the future of the materials handling industry.

To begin, he's looking for sales of materials handling hardware, software, and systems to advance at a 15% annual clip in the near term. Looking out 5 years, Martin expects FKI Logistex and Siemens will be "the only two major, broad-based materials handling systems providers in the U.S."

FKI Logistex is also looking at creating system packages that will meet 80% of customers' needs and selling them online. The company's initial foray here is likely to be 6 months from now. "We will probably set up a separate company possibly with its own name to sell on the Web," says Martin.