HK Systems expands, hires COO

By Staff -- Modern Materials Handling, 11/1/2006

Materials handling system supplier HK Systems is expanding its business and making changes to its management structure. In addition to its recent acquisition of AGV Products (see HK Systems picks up AGV Products), HK is launching a third-party logistics (3PL) business and executives are hinting at further growth.

To help manage this expansion, HK has added the position of president and chief operating officer to its management team. Michael Gonzalez, formerly of Interlake Material Handling, will fill the position, reporting to CEO and chairman John Splude.

"The addition of a president and chief operation officer allows me to focus on new strategic alternatives for the company including new markets and potential acquisitions," says Splude.

HK is in the early stages of developing a 3PL and vendor-managed inventory service for a specific customer and expects that line of business to grow over the next few years, Splude says. HK Production Logistics will differ from traditional 3PL services, he says, by incorporating a high degree of automation.

"In the 3PL world, there's been resistance to do automation in any significant way because a lot of 3PLs work on short-term contracts," he says. By contrast, HK Production Logistics will operate on long-term contracts, allowing it to make capital investments in automated equipment.

The new business is a logical step for HK, which builds and maintains materials handling systems for clients and now will begin owning and operating the systems as well, says Splude.

Other growth for the company, he says, has come from its expanding business with the U.S. military and from its warehouse management system software business.