Here’s the equation: Take the world’s top systems suppliers, add their reported revenue for 2011 and what do you get? A really big number: $14,338,000,000. In fact, Carl Sagan might have said there were billions and billions of dollars spent in the materials handling industry last year.

Modern’s 15th-annual survey shows increased revenue for 18 of the world’s leading materials handling systems suppliers. In fact, this year’s combined total revenue tops last year’s $11.4 billion by about 25%. In addition, the cut off to make the list rose from $100 million to $110 million. See last year’s Top 20 systems suppliers.

This year’s list also welcomes back all of last year’s Top 20, plus one. If you’re doing the math and come up with 21, you’re right. Here’s why: With last year’s No. 1 Schaefer and No. 2 Daifuku both reporting $2.5 billion this year, and currency conversion and fiscal-year-end timing differences, the race was simply too close to call. As a result, both companies can claim top honors.

Here are the details on where the remaining top five companies landed in the Top 20. Dematic keeps a tight hold on its ranking with $1.3 billion, up from $1.2 billion last year. Murata Machinery breaks into the billion dollar category, going from $749 million to $1.05 billion. Mecalux made a run at the billion-dollar threshold with an estimated $952 million in revenue, while Vanderlande posted modest growth to $747 million.

The next five system suppliers, which all experienced an increase in revenue, include Swisslog, Kardex Remstar, Beumer Group, Fives Group and Intelligrated. The combined revenues for these companies totaled $2.79 billion.

Adding to the equation
Going back to the top of the list, Daifuku saw its revenue spike more than $600 million dollars, from $1.95 million to $2.5 billion. The increase was due in part to the April 2011 acquisition of three companies which provide airport baggage handling systems and services, including Logan Teleflex Ltd. (headquartered in the United Kingdom), Logan Teleflex S.A. (headquartered in France) and Logan Teleflex (headquartered in the U.S.). In a statement to Modern, Daifuku also attributed the increased revenue to its sale of storage, transport, sorting and picking systems (primarily automated storage and retrieval systems) to a broad range of industries including food, pharmaceuticals and agriculture.

Schaefer, tied for No. 1, experienced a 16% increase in revenue over last year, going from $2.19 billion up to $2.5 billion. Schaefer company president Arnold Heuzen told Modern that “the company expects continued growth as a worldwide systems supplier as it opens new markets and subsidiaries in Asia, South America and other emerging economies.”

Top 10 news
Dematic and Murata Machinery attributed their company growth to similar factors. On the product side, Ken Ruehrdanz, warehousing and distribution market manager for Dematic, says the market is embracing new enabling technology and that applications for certain systems are on the rise. Regarding geographic coverage, while they were not able to disclose specifics, Murata Machinery told Modern that a significant portion of growth came from increased expansion in specific regions within key vertical markets.

Vanderlande Industries also extended its reach as a systems supplier by acquiring Beewen, a German company that supplies a number of materials handling systems. Swisslog enhanced its offerings by forming a joint venture with Heron Corp., an Austria-based producer of automation components, to manufacture state-of-the-art transport robots and continue its light goods technology expansion.
Beumer Group, which is back in the top 10, also expanded its footprint in September 2011 by acquiring Enexco Teknologies India Limited, located near New Dehli.

Rounding out the top 10 suppliers is the Fives Group, which experienced a bump from $383 million to $508 million, and Intelligrated, which grew from $378 to $435 million.

“Last year, our customers increased their earnings and were looking for an attractive ROI that can be found in our products, services and automated materials handling systems,” says Chris Cole, CEO of Intelligrated. “Intelligrated saw expansion of exports and growth in international business in Canada, Mexico and South America.”