Material Handling Automation: Investment Opportunities for 2022 and Beyond

Apr 2022

Catalyzed by substantial e-commerce growth and more and larger fulfillment and distribution centers being built around the globe, 2021 brought increased investor interest in the material handling automation sector. A number of tailwinds promise to make the material handling automation space a hot spot for investment in 2022 and beyond.

Accelerating retail competition emerging from the pandemic is driving demand for faster shipping times as businesses aim to retain customers by making changes in COVID-19 driven buyer behavior permanent. At the same time, retailers are looking to combat labor shortages and mitigate workplace injuries in their fulfillment and distribution operations. Material handling automation capabilities offer a path to using technology to do more with fewer workers and allowing movement of a greater volume and breadth of items faster. With the volume of orders (and returns) requiring processing and fulfillment operations to accelerate rapidly, implementing warehouse automation will be essential for players to keep up with and compete with industry-leading players like Amazon. Automated and robotic solutions are becoming a top priority in the year ahead as companies increasingly prioritize throughput and scalability. Adoption of automated storage and retrieval systems (AS/RS) in particular is one of the fastest growing areas and projects strong long-term growth.

E-commerce sales are also boosting in Europe, where demand per capita was historically lower than in the U.S. As sales rise across European countries, cross-border investment opportunities will abound in 2022.

Throughout 2021 and already in 2022, Lincoln has advised on a multitude of deals in the material handling automation space. Explore our experience and credentials:

Summary

Contributor

Meet Professionals with Complementary Expertise in Industrials

Related Perspectives in Industrials

While Automotive Supply Chain Headaches Drag On, Buyers & Sellers Prepare for a Busy Year of Dealmaking in 2022

Automakers and suppliers were forced to cope with unique supply chain challenges in 2021, driving significant disruption to production and resulting in levels of inventory at unseen historic lows. These… Read More

Scale your Career: What Makes a Good Investment Banker Great?

For new analysts and associates, communication, collaboration and coordination are essential components of a successful investment banking career. Individuals who can communicate and collaborate effectively with colleagues across title levels… Read More

PE Hub | ‘Productivity is Critical’ when Buying in the Competitive Industrials Sector

Originally published by PE Hub on February 8, 2022. Robert Reifman, Managing Director in Lincoln’s Industrials Group, meets with PE Hub to discuss key trends and outlook for investors in… Read More

Webinar | Automotive Update 2022: Insights from the TMA Detroit Chapter

On January 11, 2022, Sanjeev Varma, Senior Advisor at Lincoln International, joined automotive experts in TMA Detroit’s virtual panel to share insights on the current automotive M&A environment and industry… Read More