The automation company Knapp is a major global player headquartered in Graz, Austria. The company was founded in 1952 by engineer Günter Knapp and is still owned by the Knapp family. In recent years, the group has grown rapidly and now employs 6,300 people and has 53 offices worldwide. Knapp is now set to grow rapidly and become better known in the Nordic region as well.
To this day, Knapp is guided by its founder’s motto:“Can we build it? Of course we can!” This attitudethat nothing is impossible is reflected, for example, in the development of innovative milk pumps and filling machines for donut production. Today, Knapp is perhaps best known for the OSR Shuttle EVO automated shuttle system and for its early development of the A-Frame picking solution, although there is a wide range of other solutions in the product portfolio.
“Move beyond the association with conveyor systems”
Knapp has been operating in Sweden for fifty years. Here, the company is often associated with mechanical light-goods conveyors and pallet conveyors, a result of the Austrian automation company’s 2008 acquisition of Swedish Moving AB—a locally well-known manufacturer of conveyor systems with a strong brand.
“We are now phasing out our production of pallet conveyors in Åstorp and establishing a new Nordic headquarters in Malmö. Our goal is to eventually move away from our association with rail systems. That association is unfortunate because we are a high-tech automation company that offers hyper-automated solutions for warehouses, hubs, and stores,” says Mikael Holmqvist, who has been CEO of Knapp AB for just over a year but was hired as the company’s production manager in 2017.
Mikael has extensive experience in the logistics industry, as a management consultant, and as a CEO in the contract manufacturing sector. Among other roles, he served as a business unit manager and later as sales and marketing director at the WMS company Consafe Logistics for nearly six years. In other words, he knows the industry inside out and has solid experience in sales and marketing.
“Unfortunately, Knapp has been somewhat overshadowed here in the Nordic region. With over 3,000 installations worldwide and several leading technologies, I definitely think there’s a need to raise awareness about who we are,” says Mikael with a laugh.
More visible and well-known
Knapp is therefore making an ambitious push to become more visible and well-known in the Nordic region. One step in this development is the establishment of a new Nordic headquarters and competence centers in Hyllie, Malmö, in close proximity to both Kastrup, the Öresund Bridge, and train connections. Media visibility, marketing, and sales efforts have also been significantly ramped up in recent times.
“We don’t have the market presence we’d like in the Nordic region, and we don’t feel that the brand is well-known enough here. We’re usually included in the really big tenders because consultants who are familiar with us are involved, but the broader business community doesn’t know who we are,” says Mikael.
Following the closure of production in Åstorp and a number of new hires, the Nordic division, Knapp AB, will consist of approximately 60 employees, 35 of whom will be based at the new Malmö office, with the rest working on-site at various client locations. The Nordic employees are also supported by various specialists from Knapp’s headquarters and other operations. In addition, intensive efforts to recruit more employees are currently underway.
“An important part of our Nordic expansion is recruiting more employees, including solution designers—a role that combines the responsibilities of a management consultant and an application consultant—who help customers identify the most effective and value-adding solutions. We’re also hiring for a number of other customer-facing roles where we need to strengthen our team,” says Mikael.
Revenue doubled
Knapp AB is now embarking on a major Nordic initiative aimed at raising brand awareness and, above all, driving significant expansion in its core segments: healthcare, retail/e-commerce, food, fashion, industry, and trade.
“We see significant opportunities to double our business in the Nordic region over the next five to eight years. We have a broad product portfolio that’s a great fit for many companies in e-commerce, retail, trade, and industry,” says Mikael.
Several new customers
In the e-commerce and retail sectors, Knapp has recently gained several new customers in Sweden, giving the business a boost. Among other things, it was announced this spring that the cosmetics chain Kicks is investing 200 million kronor in a new Nordic omnichannel warehouse in Rosersberg, just north of Stockholm. The new warehouse will be equipped with the OSR Shuttle EVO automated shuttle system. Another example is Apoteket AB, which a year ago chose Knapp as its automation partner for its new, state-of-the-art e-commerce warehouse in Eskilstuna.
“The Knapp Group is doing exceptionally well. Since 2015, the company has doubled in size, largely through organic growth. In other words, the group is performing very well, even though growth in the Nordic region has been weaker,” says Mikael Holmqvist, emphasizing that it really goes without saying that the same ambition should apply here in the Nordic region as well.
Booming market
The logistics market in the broadest sense is booming right now, and the logistics automation sector is red-hot. As a result, most automation companies are currently growing at a rapid pace. With demand for automation growing so rapidly, it hasn’t been difficult for Mikael to convince his clients in Graz of the potential of a major Nordic expansion.
– The automation market as a whole is growing by an average of about 10 percent per year, and the Knapp Group is growing even faster. There are several trends driving demand. The growth of e-commerce, with its increased demands for quality, speed, and efficiency in the supply chain, is an obvious trend, notes Mikael, continuing:
– Another key trend is the dynamic emerging around how consumers, stores, corporate clients, and branches will be served by an entire ecosystem of warehouses, hubs, and last-mile operators. Should you have a central warehouse in Stockholm or a combination of various types of micro-fulfillment centers, and if so, how should they be equipped with automation? Here I see an exciting trend where different solutions will be chosen throughout the value chain in a more seamless way, says Mikael.
Unique abilities
So what is it that makes Knapp successful in the global automation market, and what are the company’s unique strengths? Mikael Holmqvist particularly highlights the Knapp family’s long-term perspective and the company’s advanced, in-house developed technology.
– Knapp takes pride in its history and culture of technical innovation. This is reflected, among other things, in the fact that we have 2,000 development engineers out of a total of 6,300 employees and that we invest 800 million per year in product development. Knapp was, among other things, the first to introduce the A-Frame and the OSR shuttle, and we were early adopters of both AI and visual technologies
in our solutions.
The OSR Shuttle system mentioned earlier, which was launched shortly after the turn of the millennium, is a major milestone in the Group’s development and is now at the heart of the company’s solutions. But Mikael reveals that the market can soon expect alternatives to the OSR Shuttle.
“OSR isn’t the cheapest solution on the market, but it has a very high capacity, and all items are readily available, sequenced, and handled quickly. Within a year or so, we’ll be introducing alternatives aimed at companies that can’t justify an investment in the OSR shuttle,” says Mikael, without revealing any further details about what’s in store.
Increased demand for mobile robots
Another growing area for Knapp and many of its industry peers is mobile robots—specifically AGVs (Automated Guided Vehicles) and AMRs (Automated Mobile Robots)—for both small items and pallets. Knapp is making significant investments in this area to meet growing demand.
– We’re introducing new products, software, and setups that will provide suitable, flexible solutions for all warehouses that don’t have extremely high speed requirements and where existing infrastructure limits the level of automation that can be implemented. We’ve allocated dedicated resources to sell these mobile robots here in the Nordic region.
A higher degree of product integration?
The largest players in warehouse automation in the Nordic region are SSI Schäfer, Element Logic, Swisslog, and Dematic. Next come companies like Knapp and TGW, which are hot on the heels of the market leaders. At the same time, the market is evolving as more and more players with cutting-edge technologies establish themselves. These technologies are increasingly being incorporated into the product portfolios of the major players. A prime example is Autostore, which is offered by Swisslog, Dematic, and Kardex, among others, as well as by Element Logic, which essentially sells only Autostore. Is a greater degree of integration of competitors’ products also conceivable at Knapp?
– Knapp has adopted a different strategy, under which we invest 800 million kronor annually in in-house product development and continuously expand our portfolio of solutions and systems. We do this because we are convinced that in-house innovation and a holistic approach ultimately create greater customer value.
—
About Mikael Holmqvist
Education: Master’s degreefrom Lund University and an MBA.
Career: Abackground as an executive and leader in various international companies, holding positions such as CEO, Division Head, and CMO in industries including IT, contract manufacturing, and 3PL. Mikael has also worked as a management consultant specializing in strategy and business development.
Family: Twoteenage daughters.
Interests: Motorcycle trips.
My main rule in life:Don't dwellon what you can't do; focus on what you can do.
Best leadership advice: There’sno one-size-fits-all approach. You need a comprehensive toolkit that you’ve mastered, but above all, you need to learn to use different approaches and tools for different situations.
About Knapp
Knapp is a world-leading technology partner for intralogistics automation solutions. With over 50 years of experience in automation and transport solutions, the company has helped more than 200 customers in the Nordic region with intralogistics. Knapp AB is part of the Knapp Group, headquartered in Hart Bei Graz, Austria. The Group has over 6,300 employees in more than 50 countries and serves more than 3,000 customers globally in the industrial, food retail, healthcare, retail, and wholesale sectors.