17. October 2017


As a leading global supplier of automated material handling solutions and software, Austria’s TGW Logistics Group has seen significant expansion in its American business unit TGW Systems, Inc. The company attributes this domestic growth to technological innovations, advanced goods-to-person solutions and an extended service portfolio.

Today, TGW Systems, Inc., a subsidiary of Austrian-headquartered TGW Logistics Group, announced an order-intake increase of 60% for fiscal year 2016/2017 (which ended June 30, 2017). Globally, TGW Logistics Group had an overall order-intake value of $993 million, with annual revenue amounting to $742 million—an increase of approximately 20% compared to the previous fiscal year.


“It was a very successful year, not only for our parent company in Austria, but also for us,” says Mario Herndl, CEO of TGW Systems, Inc. “Here in the U.S., the 60% project order increase over the previous year is beyond our expectations. We believe the growth validates our approach to providing the market with innovative, proven solutions, as well as offering an extended service portfolio.”

The rapid growth of TGW’s American subsidiary is no coincidence, he continues, noting that the company’s innovative handling solutions are designed to meet any customer needs in the core markets of apparel, grocery and general merchandise.

 "We, as a self-contained solutions provider and system integrator, have focused on bringing innovative technologies tailored to the American market. Everything our customers require for their material handling needs is provided by TGW, including all components,” Herndl adds. “Due to the experience we’ve gained from working with customers in the U.S. over the past few years, we are now offering and delivering full-service contracts supported by on-site teams, as part of our portfolio of offerings in the U.S. market.”


In order to provide faster and more cost-effective service to customers, TGW Systems has invested in its U.S. operations in several areas, including:

  • Increased size of the spare parts warehouse in Spring Lake, Michigan to support U.S. customers.
  • Considerable investments made to expand the capabilities and responsiveness of the remote service and maintenance teams.
  • Planned purchase of a new production facility that is double the capacity of the current plant and offers room for future expansion.
  • Growth of the U.S.-based technical teams throughout 2017 and hiring plans for an additional 100 employees over the next 12 months, increasing the size of the American team from 350 to 450.
  • Opening satellite offices in Seattle, Washington and Atlanta, Georgia for closer proximity to customers in the Pacific Northwest and Southeastern U.S.


TGW – Forward-thinking innovations

Because the TGW Logistics Group focuses on meeting changing customer needs, the company added the TGW Robotics unit in 2016 through the acquisition of an existing, established robotics company with about 70 employees. This allows TGW to further develop automated, robotic based solutions that meet customer requirements to achieve higher productivity with fewer workers.

“It will be exciting to see how processes within the intralogistics industry develop in the next 10 years. I foresee a time when humans and machines will work closely together,” predicts Georg Kirchmayr, CEO of the TGW Logistics Group.

Simultaneously, TGW is working on product developments that ensure long-term operating reliability, increasing its commitment to research and development projects by more than 40% in the past fiscal year. One area already reaping positive results is TGW’s Lifetime Services, supported by an investment in intelligent Smart Glasses, says Herndl.

“By wearing them on-site while working on a customer’s system, TGW engineers and service technicians can connect with the remote maintenance teams and communicate directly in real-time. This enables us to provide a new dimension of remote maintenance for our customers,” he notes.

“TGW is committed to developing high quality solutions for the long term focusing on research and development in an effort to identify, develop, and design solutions that will meet the future needs of our customers. We don’t just develop nice automated gadgets.” adds Kirchmayr.


Ready for the future

TGW Systems’ Inc. CEO Herndl and the U.S. team believe that the American market is in the golden age of intralogistics, and are excited to bring more innovations to the U.S.

“We have seen great demand for our omni-channel solutions and expect this path to continue, particularly for highly automated goods-to-person systems, as well as in conveyors and high-speed sortation solutions,” he concludes. “We see more and more demand towards fast, flexible, scalable systems that reduce footprint and labor while providing increased service levels in this demanding, changing business environment. In combination with our long-standing expertise, high-quality systems and premium Lifetime Services, TGW Systems looks forward to partnering with more U.S. customers who are seeking one-stop solutions with optimized total cost of ownership.”




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