Riantics opens office in the US

Two years ago, the German Körber Group acquired Riantics, and a significant level of investment readiness and faith in the core product have accelerated the growth. The next, large step is the establishment of the company in American Pennsylvania.

The new US location of Riantics – Foster Plaza 7 – together with the sister companies Langhammer and DMLogic.

The need for automation solutions for internal logistics purposes is growing in the US. Riantics has in recent years built a healthy business on the American market – and despite the distance, the customer portfolio has increased. Riantics was given a real seal of approval when being acquired by the German Körber Group in 2016, and since then the orders have kept growing both in number and scope.

Most recently, Riantics closed a strategically very important order with one of the World’s leading manufacturers of Fast Moving Consumer Goods. This multi-million order was the third in a row of orders for the same customer, who is planning to invest in Riantics automation solutions in the US in the years to come.

Facts like these have triggered Riantics’ entry into the North-American market – which is, by the way, done in style.

“The opening of our office in the US secures our support to customers on the North-American market even better in the future. We launch this step in cooperation with our sister company, Langhammer, which is also part of Körber Logistics Systems. From late 2018, four employees will have their base in Pittsburgh, with the target of increasing this number to 50 within the next five years. These employees will represent Langhammer as well as Riantics, and they will be responsible for sales, customer service, purchase, and order processing. Focus is specifically on our patented Layer Picker® and Layer Picker® Solutions for System Integrators and actors within 3PL and FMCG”, says CEO Hans-Henrik Jensen, who further explains the tendency on the US market:

The demand for automated storage solutions is growing heavily. The US is still a low-wage country, but the minimum wage is increasing – as is the interest in ergonomics in workplaces. However, what is growing most of all is the production. Unemployment, on the other hand, is coming down, and it is rapidly becoming a real challenge to recruit employees – enormous resources are being applied on maintaining the required headcount”.

The size of this challenge for US companies is best illustrated by Hans-Henrik Jensen’s example from a 3PL company that runs distribution centres for cold and chilled goods:

This company invited approx. 50 warehouse clerks to a job interview. It said in the invitation that they were to undergo a health check. The participants were informed about the programme of the day, and when starting the first point, they were told that those already aware of their own inability to pass the health check might as well leave right away. Approximately half the participants got up – and left. Then, they had to pass a third-class level math and writing test – and approximately half the candidates failed the test. The rest participated in a personal interview, and the company hired five persons. After two months, only one person remained.

That automation is most welcome under such circumstances is easy to understand. The above issues make it wildly difficult to run a profitable and stable business. In order to honour all parameters, companies have to streamline and to seize the technological opportunities available. Within many sectors, the US shows an automation level that is 10-15 years behind the European market, and our solutions therefore have a substantial impact on the companies and their positioning on the domestic market”, says Hans-Henrik Jensen.

Riantics’ department in Pittsburgh, Pennsylvania, officially opens in October 2018 as part of Körber Logistics Systems North America, Inc.

With the establishment in the US, Riantics joins 550 American colleagues under the technology Group Körber, which already owns the software company DMLogic in Pittsburgh and HighJump in Minneapolis.