CLEVELAND, May 25, 2021 /PRNewswire/ — Organizations of all sizes are moving toward a digital supply chain, which is rapidly becoming the predominant distribution model — a shift accelerated by COVID-19 — according to an industry report released by the Industrial Technology investment banking team from Brown Gibbons Lang & Company (BGL). Supply chain and customer procurement trends, including eCommerce, have been fast-tracked in the pandemic, highlighting the need for participants in the industrial marketplace to consider an expanded use of digital technologies to remain competitive in response to unprecedented market changes.
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BGL examined trends driving growth in Warehouse Automation, a $14 billion market that is projected to reach $30 billion by 2026, representing 14% compounded annual growth. The report documents a favorable outlook, citing technology innovation which is enhancing the capability, integration, and performance of supply chain automation solutions and making them increasingly more cost-efficient.
- Cloud computing, robotics, and inventory/network optimization have seen sizable increases in terms of supply chain investment and are expected to be among the technologies to see the highest adoption over the next five years. Robotics and automation are predicted to be industry disruptors or sources of competitive advantage.
- Cloud platforms have dramatically reduced the cost to set up a foundation for connected systems. Data is being collected from IoT and sensors throughout the supply chain and turned into actionable insights, assisted by advanced analytics and Artificial Intelligence. Companies that are able to capitalize on collecting and assimilating data streams are making better decisions and driving quantum improvements in their supply chains.
- Growing eCommerce sales are driving warehouse automation growth. U.S. online sales surpassed $800 billion in 2020 and are forecasted to reach $1 trillion by 2022. To accommodate growing customer demand, automation can help companies improve order accuracy, expedite order fulfillment, and overcome labor challenges.
Consolidation of material handling equipment providers is increasing as traditional players see acquisition of technology leaders as an increasingly attractive way to enhance competitive positioning in response to changing market trends. Acquisitions by KION (Dematic), KUKA (Swisslog), Toyota (Vanderlande, Bastian Solutions), Hitachi (JR Automation), Honeywell (Intelligrated, Transnorm), Korber (Cohesio Group), and Teradyne (MiR, Energid, AutoGuide Mobile Robots) are some of the recent examples of this consolidation.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, divestitures, capital markets, financial restructurings, valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company