We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » Swisslog acquires Forte Industries in bid to meet e-commerce demand
newsworthy

Swisslog acquires Forte Industries in bid to meet e-commerce demand

April 20, 2015
Ben Ames
No Comments

High-end warehouse automation equipment supplier Swisslog announced today that it acquired the system integrator Forte Industries, a move that enables the Swiss firm to expand its presence in e-commerce fulfillment and the midrange material handling segment of the U.S. market.

Forte will continue to operate out of its Mason, Ohio, headquarters as a standalone unit and will maintain its own name. Terms of the deal were not disclosed.

The biggest immediate impact of the deal will be the departure of company founder Gene Forte, 65, who created the company 35 years ago and stepped down as CEO on Monday to assist with the transition in an advisory role, said Tom Rentschler, vice president of sales and marketing for Forte.

Forte has been replaced by A.K. Schultz, a 15-year industry veteran of engineering and automated material handling positions who had previously served as vice president of customer service in Swisslog's North American headquarters in Newport News, Va.

"I am enormously proud that a global systems integrator with the stellar reputation of Swisslog sees Forte as such a valuable addition to their team," Gene Forte said in a release.

Aside from the change in leadership, the merger is not expected to lead to staff cuts; in fact Forte expects to maintain its full staff and even continue its trend of recent hiring, Rentschler said.

Swisslog's decision was driven in part by the rapid expansion of the e-commerce market, which has boosted demand for piece-picking equipment in warehouses to fulfill the growing number of small orders sent to individual customers, said Bill Leber, Swisslog's director of business development and marketing.

Swisslog sells advanced automation systems such as AS/RS products in the global, top-tier market sector. By acquiring Forte, it gains a valuable presence in the semi-automated systems used by many midtier warehouses to ship smaller orders and meet the demands of omnichannel distribution, Leber said.

"E-commerce affects all the piece-picking operations and drives more business to the space of a distribution center," Leber said. "A lot of the physical purchasing that used to happen in stores now takes place in the DC."

By adding Forte's expertise in midtier material handling systems such as pick modules, conveyors, and sortation systems, the combined company will be able to meet increased demand for goods-to-person capabilities.

The move represents continued growth for Swisslog, which itself was acquired in 2014 by the German robotics firm KUKA for $356 million and has since kept expanding. The company's Warehouse & Distribution Solutions (WDS) division has increased the number of North American employees by 25 percent over the past two years, to nearly 190 people.

Swisslog has boosted its hiring to meet steep growth in its pharmaceutical, refrigerated, and frozen-food lines, as well as e-commerce, Leber said.

Changes in the healthcare industry have put similar pressures on warehouse operations. Hospitals are focused on driving down costs, shipping more unique SKUs, and demanding just-in-time delivery to minimize inventory bloat.

It all adds up to warehouses getting a greater number of orders with less material per line—a bad fit for Swisslog's powerful automated equipment. By working with Forte's midrange piece-picking ability, the two companies hope to build a stable of expertise in warehouse equipment to meet the new demands of the omnichannel economy.

That progression would mark the achievement of a long-term goal for company founder Forte.

"This was the culmination of Gene's career," said Forte's Rentschler. "He was interested in finding a strategic acquirer, not just a financial acquirer. He wanted to see what he built to be not only perpetuated, but to be positioned to continue to grow."

Material Handling Conveyors
KEYWORDS Forte Kuka AG Kuka Systems Swisslog
  • Related Articles

    DCs boost investment in mobile technology to meet e-commerce demands, survey shows

    Descartes buys Oz Development in bid for SMB e-commerce customers

    Sealed Air acquires packing supplies vendor to expand services in e-commerce fulfillment

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Trucking industry warns that AB 5 decision could push freight capacity out of California

Strong consumer spending and job demand will fend off recession this year, NRF says

Labor groups cheer Supreme Court decision to let AB5 stand

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Private equity firm acquires packaging provider Coregistics in e-commerce bet

  • Packaging industry reprioritizes amid inflation, supply chain disruption

  • Warehousing's perfect storm

  • Raymond Corp. marks 100th anniversary

  • Investors see big value in basic wooden pallets

Now Playing on DCV-TV

E3f9e6d5 8bd4 40ca 8c7f 43aa63ea3fc9

Lessons from CSCMP’s Annual Report Card for Shippers and Carriers

DCV-TV 4: Viewer Contributed
Recently, the Council of Supply Chain Management Professionals (CSCMP) released their 33rd Annual State of Logistics Report which is created by AT Kearny. I've viewed this as basically a "Report Card" for shippers and carriers since it offers a comprehensive view of what they both have dealt with in the past year,...

FEATURED WHITE PAPERS

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Fueling Sustainability for Manufacturers: Strategies to Increase Fuel Efficiency and Reduce Your Carbon Footprint

  • Guide to Proven Warehouse Solutions

  • Five common misconceptions about running a private fleet

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing