TGW creates 850 new jobs and invests in location expansion
(Marchtrenk, Austria, September 23, 2021) TGW Logistics Group has successfully completed its 2020-2021 business year (July 1, 2020 to June 30, 2021) with a turnover of 952.26 million US dollars. Incoming orders were over one billion for the first time at 1.29 billion US dollars, while EBIT climbed to 59.1 million US dollars. In the upcoming months, the technology company will create 850 new jobs – more than 100 of them in North America.
Harald Schröpf, Chief Executive Officer of TGW Logistics Group, is pleased with the development of the past business year. "The last year and a half has been very challenging for TGW – and outstanding at the same time. I am deeply impressed by the passion and dedication shown by our employees. Together, we were able to deal with the effects of the COVID-19 pandemic successfully. For the first time in our history, our incoming order volume exceeded the one billion threshold, while at the same time our EBIT grew to a record value of 59.1 million US dollars. Our turnover increased to 952.26 million US dollars."
In March 2021, TGW sold its US-based conveying equipment division to a strategic investor. "This step is part of our global standardization strategy. The turnover of the sold division – around 94 million US dollars in the 2019-20 business year – was excluded from the total turnover for accounting reasons. If one were to include this sold division, TGW's turnover would have grown by ten percent."
Moreover, TGW was able to reach another milestone in its company history by exceeding one billion US dollars in order volume. Incoming orders are expected to once again clearly exceed the billion US dollars threshold in the current fiscal year, with strategic growth markets in Europe and North America. Recently TGW has been appointed to implement an end-to-end fulfillment solution for Urban Outfitters and furthermore strengthens its position as specialist for omni-channel solutions on the market.
The research and development budget increased by more than 17 percent to 38.41 million US dollars. The research and development budget will be further increased in the current business year by concentrating on artificial intelligence, software and robotics. As a leading system integrators for automated warehouse solutions, the company will further invest in automation technologies, that allow for further flexibility in distribution centers helping their clients to solve daily issues such as labor scarcity.
For the 2020-21 business year, TGW is paying a profit share at a total of 8.2 million US dollars in the fourth consecutive year to its employees. The concept is based on the belief in responsibility and fair participation in economic success, in line with the philosophy "Focusing on People – Learning and Growing". Employees can choose between the options of bonus pay, additional personal time off or different healthcare benefits.
The number of employees increased to 3,766 in 2020/21. Due to its ongoing growth the company is creating 850 additional jobs in the current fiscal year, more than 100 of them in North America. Global recruiting efforts are focused on specialists in the areas of software and IT, control engineering, service technicians and development specialists. Harald Schröpf says: "A key factor in our success is the expertise and dedication of our employees. As a technology company, our line of business is an innovative and dynamic industry. Having a strong team is the only way for us to deliver the best results to our international customers. In addition to exciting jobs, we therefore offer a state-of-the-art working environment, numerous benefits, flexible working hours and a generous work-from-home model."
To lay the foundation for its planned growth, TGW is investing about 234 million US dollars into its locations in the next five years. The Austrian headquarters will be expanded by additional office facilities for 800 employees and a production hall including an automated warehouse with a total area of around 220,000 ft². Additionally, TGW will invest in an education and development center that will provide space for a new program that focuses on professional and personal education and development.
The system integrator will also strenghten its robotics competence center in Germany. Recently the company acquired a new facility double the current size that will provide additional space for developments in robotics.
Harald Schröpf: "We are looking into a promising future and are expecting further growth. TGW is making massive investments into research and development, infrastructure as well as the education and training of our employees. Because we are set up as a foundation company, we have the security and stability we need to think and act for the long term."
