Yikes, what a year! It is not exaggerating to say that materials handling system sales in 2001 were a major disappointment, especially when contrasted with the record increases experienced over the past few years. Thankfully, there were enough early indicators in the economy that most companies saw it coming and were able to adjust for a downturn or at least a stagnant year.

Our annual list of top materials handling system suppliers reflects these trends. Of the 17 companies also on last year's Top 20 list, eight showed less revenue in 2001 than 2000. Five showed slight increases, and four reported no change in sales revenue from the previous year. Those companies with a European base seem to have weathered the economic storm a little better than those headquartered here in the U.S.

For the second year in a row, each of our Top 20 had at least $100 million in sales, with four companies doing over $1 billion in business. The Top 8 all posted revenue of at least $500 million. Together, all 20 totaled sales of nearly $14 billion.

To qualify for the MMH Top 20 list, companies must be suppliers of materials handling systems, not just equipment providers. In addition to manufacturing at least one major handling system component, a company must also have full-time staff that designs, installs, integrates and implements materials handling systems that include two or more major types of hardware or software. These are transportation devices, storage and staging equipment, picking units, sortation systems, information management systems, data capture technologies or other systems. A table in this article defines what each member of the Top 20 supplies.

This year's list also reflects the continuing trend of consolidation within the industry. Our top company is a prime example. Last year, Siemens first entered the MMH rankings in the Number 2 slot, based on an increased emphasis in its materials handling businesses. This year, the company upped the ante with the completion of its purchase of Mannesmann Dematic (Rapistan and DeMag Cranes and Components), last year's Number 1. Together, the new Siemens Dematic is a $4.6 billion annual force, with sales triple those of its nearest competitor.

FKI Logistex, Number 2 on our list, was also busy with acquisitions. The company bought Sterns Airport Equipment in May and then added UK-based Cleco Systems and its software subsidiary Io Systems in December. The acquisitions helped FKI sales to equal 2000 figures.

In other moves, Kardex-Remstar purchased Stow Group of Belgium, a maker of static storage systems, and Swisslog increased its financial stake in Wassermann AG, a German-based supply chain consultant.

Two newcomers also made our listing through acquisitions. In a giant leap this year, Schaefer Holding International (SSI Schaefer in the U.S.) bought two automation companies. Schaefer, a long-time manufacturer of containers, totes, and storage and staging equipment, purchased PEEM Conveyor Systems of Austria late in the year. Coupled with its 2000 acquisition of German-based Noell, a systems integration company and manufacturer of automated storage systems, Schaefer now approaches the market as a multi-faceted supplier of warehouse systems, and as a result landed the Number 4 spot on our list with revenue of $1.1 billion.

Also new this year is The Brambles Group. Based in Sydney, Australia, Brambles purchased the long-established Interlake Materials Handling division from its former parent company, GKN of Britain. This placed Brambles in the Number 16 position on our list. Brambles is also the first corporation on our list to be headquartered Down Under, proving once more the worldwide impact of materials handling.

Rejoining the Top 20 after a year's absence is Knapp Logistik Automation, which landed in the Number 18 position with strong sales of $127 million. Unfortunately, one company that perennially made the list, Hytrol Conveyor, missed out this year by a mere $5 million.

While 2001 was a year most wish to forget, there is hope for a brighter 2002. Most materials handling suppliers expect a mild turnaround beginning in the second half of the year, though not as significantly as the huge growth spurts of the late '90s. We will see how this is reflected in next year's Top 20.

Click this icon to view last year's MMH Top 20

Click this icon to read more about the Top 20 in the past year's news - Siemens purchase of Mannesmann-Dematic.

Click on this icon to read more about the Top 20 in the past year's news - FKI's acquisition of Cleco Systems.




Click on this icon to read more about the Top 20 in the past year's news - Schaefer's addition of PEEM.




Click on this icon to read more about the Top 20 in the past year's news - Swisslog's organizational changes.