How Kelly and Lowell Industrial Services are transforming their business from a salesforce to a logistics company
Jul 1, 2019 06:23:18 The future of salesforce is shifting from a business to a service business, and it’s coming at a steep price.
Kelly, the second-largest global industrial services company, is changing its name to Lowell Industrial, and Lowell will start to make some of the same hires and products as Kelly.
This is an acquisition that will make the Kelly Industrial brand a bigger player in the world of industrial logistics, as well as in retail, manufacturing, and finance.
In an interview with Bloomberg, Lowell president Jim Bowers says that the new company will bring to the market a broad range of products, from shipping containers to shipping systems to shipping services.
The biggest challenge for Kelly will be making its products in the same time frame as its competitors, he said.
The Kelly company has about 25 employees, Bowers said.
“It’s really not just a salesperson-centric company,” he said, adding that the Kely team will be focused on the “business and supply chain” aspect of its business.
Lowell has been the world leader in industrial logistics since 2007, and Kelly has been steadily expanding its operations.
The two companies have built up a large customer base and an extensive business in the last several years, with about 100 employees in sales, manufacturing and finance, Bower said.
Kely is currently the No. 1 industrial logistics company in the U.S., with $6.4 billion in revenue.
The company’s revenue from its retail operations rose 19% in the fourth quarter of 2019.
Lowell is also growing its services business, adding 20 employees, the largest in its sector.
Bowers sees Lowell as “a much bigger opportunity” than Kelly because its services offerings include services for shipping containers, warehouses, and freight distribution, and they also offer logistics services for transportation of raw materials and goods.
Kellys revenue grew 8% in 2019.
Bower also pointed out that the company is focusing on its industrial logistics services, and said that Lowell will be able to expand its services even more.
Lowell said in a statement that the acquisition will help improve the company’s operations, reduce the amount of time needed to deploy and test new technologies, and increase the ease of deployment.
Keelys new name Lowell Industrial is not the only company to merge with Kelly’s industrial services business.
The companies said earlier this month that they have “acquired several companies that combine their industries.”
The merged companies will be called Lowell Industrial Solutions, and both companies said that they will continue to focus on providing industrial logistics solutions to customers around the world.
Kehlys current operations have a focus on delivering the latest technologies to the manufacturing, distribution and warehousing markets.
BOWER says that Lowell’s industrial logistics business has a value of $2.8 billion and Kehly’s operations are valued at $2 billion.
Keels new business plan Lowell Industrial has an “aggressive plan” to accelerate its growth and improve its position in the industrial logistics market.
The plan includes a focus in “market-leading technologies and services” and “expanding into a range of industries,” Bowers told Bloomberg.
Lowell Industrial will continue with Kehlya’s global supply chain services and Keelshys services for warehousing and logistics, BOWER said.
Lowell also will create a new retail business, which will combine its retail and industrial operations.
“Our goal is to drive growth and create value in both of these businesses and build upon the legacy of the Keelhlys business,” Bower added.
Keells retail business will be combined with a new division that will focus on “product development and delivery,” BOWS said.
And the company will invest in technology to create a “global logistics ecosystem.”
Kelly’s industrial operations will be renamed Kelly Industries, and Bowers called the new business a “world-class industrial logistics organization.”
Keels corporate headquarters in New York, New York City, U.K., May 18, 2020.