The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz, Austria

info • October 16, 2025

The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz, Austria

Graz: The Global Powerhouse of Intralogistics Innovation

When people think of global centers for automation technology, cities like San Francisco, Munich, Zurich, or Amsterdam often come to mind. Yet over the past decade, one city has quietly — but confidently — emerged as a world leader in intralogistics innovation: Graz, Austria.

As part of a research study for my report “The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz”, I spoke with senior leaders across the industry — from Knapp, SSI Schäfer, Dematic, Exotec, HAI Robotics, Ferag, Rocket Solutions, and Beumer Group — to better understand how this transformation happened and what lies ahead. The result paints a fascinating picture of a city whose deep engineering roots, collaborative spirit, and innovative culture have turned it into a true global powerhouse.


From Engineering Roots to Automation Leadership

Graz’s rise didn’t happen overnight. It evolved naturally from decades of engineering excellence and mechatronic tradition across Styria. The region’s industrial DNA — from the early automotive days of Puchwerke to precision machinery and control engineering — laid the foundation for what would become a thriving automation ecosystem.

Companies like Knapp and SSI Schäfer were the catalysts. Knapp, in particular, played the role of pioneer and innovation leader, inspiring a generation of engineers and entrepreneurs. As one interviewee put it, “Knapp built the foundation and created the know-how pool that attracted many other companies.”

At the same time, SSI Schäfer’s investment in local talent, paired with Graz’s growing reputation for technical excellence, created a concentration of expertise that few other regions could match. Over time, these two anchor companies set the stage for an entire ecosystem — from suppliers to software startups — to flourish.

 

A Domino Effect of Talent and Transformation

Every innovation cluster has its inflection point. For Graz, many experts point to the organizational changes at SSI Schäfer in 2017 as a critical moment that unintentionally accelerated diversification.

When leadership shifts disrupted culture and continuity, highly skilled engineers began exploring new opportunities. This created what several interviewees called a “talent domino effect” — experienced professionals joining competitors, forming startups, and bringing fresh energy to the market.

One executive summarized it well: “The 2017 leadership changes didn’t create the cluster, but they accelerated circulation.” The result was a healthy exchange of ideas and talent that further strengthened Graz’s innovation landscape.

Meanwhile, Knapp continued to evolve, investing heavily in R&D and setting new benchmarks in automation technology. Together, these movements transformed Graz into a magnet for skilled professionals, new ventures, and international partners.


Universities, Apprenticeships, and a Talent Engine

Behind every strong industry cluster lies a strong education system. Graz’s success is deeply tied to TU Graz, FH Joanneum, and the region’s technical high schools (HTLs).

Austria’s dual-education model — combining academic study with practical apprenticeship — has proven to be a key differentiator. Graduates enter the workforce with both theoretical understanding and hands-on experience. As one participant noted, “It’s quite unique to Austria — a system that lets people move from vocational training to higher education while working in companies.”

While some argued that real know-how is learned on the job, most agreed that the universities and HTLs have played a critical role in fueling the industry’s growth. TU Graz develops the algorithmic and robotics core, while FH Joanneum contributes applied mechatronics and software expertise. Together, they ensure a continuous flow of young, moldable talent — even if demand for senior engineers still outpaces supply.


The Talent Race and Changing Work Culture

As more companies established a presence in Graz, competition for talent intensified. The city’s once-steady employment market became dynamic, even aggressive. Companies had to evolve their recruitment strategies from “post a job and wait” to proactive sourcing, campus engagement, and relocation support.

But the competition isn’t just about money anymore. While salaries have risen significantly, employees today seek purpose, flexibility, and culture.
As Markus Bacher, Dematic, put it: “There’s high demand for technically savvy and seasoned solution consultants.” Yet salary alone doesn’t close candidates — it’s the chance to work on meaningful projects, maintain work-life balance, and be part of a company that values trust and development.

This shift toward holistic employment value is reshaping how companies attract and retain their people.


Why Graz Stands Out

So why Graz — and not Frankfurt, Amsterdam, or Paris? The answer lies in density, culture, and lifestyle.

Graz offers an unusually high concentration of intralogistics know-how per square kilometer. The ecosystem is compact — companies, suppliers, and universities are minutes apart — allowing for fast collaboration, agile prototyping, and personal relationships that drive innovation.

One executive described it best: “Short distances, fast access to decision-makers, and a culture of ‘build it, test it, iterate.’”

Add to that a high quality of life — safety, nature, culture, affordable living, and good education — and you get a city that doesn’t just attract talent but keeps it. For many professionals, Graz offers a rare balance between global opportunity and local livability.


The Road Ahead: Sustaining Growth Through Innovation

Can Graz maintain its momentum? Opinions vary. Some see signs of stabilization — that the explosive growth phase has peaked and will now level at a more sustainable pace. Others, like Ferag’s leadership, remain confident: “Graz continues to innovate and attract. It’s fertile ground for future trends.”

Challenges are real: rising living costs, infrastructure limitations (especially airport connections), and a saturated talent market. But opportunities are equally strong — particularly in AI-assisted optimization, robotic productization, digital twins, and green intralogistics.

To stay ahead, Graz must continue nurturing its collaborative spirit and keep pushing into new technology frontiers — from software-driven design to lifecycle services and sustainability.


Conclusion: A Culture of Innovation That Endures

Looking back, Graz’s success story is not about one company or one technology. It’s about a culture of collaboration, curiosity, and continuous innovation.

The city’s transformation from a regional engineering hub into a global leader in warehouse automation demonstrates what can happen when education, entrepreneurship, and industry share a common vision.

As I concluded my interviews, one recurring phrase stuck with me: “You always meet twice in intralogistics.”
In Graz, that couldn’t be truer — a place where ideas, people, and partnerships keep coming back, reinventing themselves, and driving the next wave of innovation.

Graz may not be Europe’s biggest city, but when it comes to intralogistics, its impact is enormous — and still growing.

By info November 21, 2024
Warehouse Space & Workforce Efficiency Workshop
By info December 20, 2023
Author: Christoph Buchmann, December 18 th 2023 Introduction:  The rise of warehouse automation has been nothing short of meteoric. Over the past decade, the sector has witnessed a growth of approximately 15% annually, driven largely by a global surge in e-commerce and the relentless quest for efficiency in supply chain operations. Yet, as we steer towards an era of seemingly boundless technological innovation, there remains a robust case for the integration of often overlooked semi-automated solutions in our warehousing strategies. The Limitations of Full Automation As tantalizing as the prospects of full automation may seem, it isn't always the golden ticket to operational excellence. Full automation demands immense capital, prolonged implementation periods, and oftentimes, a complete overhaul of existing infrastructure. Furthermore, certain tasks remain notoriously challenging for robots. Consider the intricacies of handling fragile ceramics or the unpredictability of packaging oddly shaped, bulky items. These are scenarios where the tactile sensitivity and adaptability of human hands, guided by purely human hand-eye coordination, can often outperform the most advanced robotic counterparts. It's an interplay between mechanized precision and human finesse. Entry-Level Technology: Taking the First Step For businesses that are cautious about diving headfirst into the world of automation, semi-automated systems present a prudent middle ground. These entry-level technologies, besides being more cost-effective, allow companies to dip their toes into automation without the commitment and complexities of a full-scale overhaul. Moreover, they significantly mitigate the risks associated with delays or teething problems that might arise during the integration of fully automated systems. Essentially, semi-automated solutions can act as a bridge, providing tangible benefits while also serving as a preparatory phase for potential future expansions. A Dive into Select Technologies Mobile Racks: These semi-automated storage solutions maximize space efficiency. While the racks move autonomously, the inventory selection and retrieval processes still necessitate human intervention, ensuring flexibility in handling a myriad of items. AMRs (Autonomous Mobile Robots): AMRs, unlike their fully automated counterparts, work alongside human employees, facilitating tasks like the transportation of goods within a warehouse. They enhance productivity without eradicating the human touch from the equation. Deep-Lane pallet radio shuttles: These are specialized storage solutions that autonomously navigate storage lanes. However, the loading and unloading processes are typically semi-automated, ensuring a seamless blend of speed and caution. VLMs (Vertical Lift Modules): VLMs are storage solutions that automatically deliver items to an access point. While the retrieval is automated, the picking process remains human-led, ensuring accuracy and care. A New Dawn for Small and Medium Enterprises As the curtain falls on this discussion, it's pivotal to underscore the transformative potential of semi-automated solutions, especially for smaller businesses. These enterprises often operate under tighter budget constraints, making the prospect of full automation daunting. However, with the suite of semi-automated technologies available, these businesses can now embark on their automation journey, reaping a plethora of benefits ranging from improved efficiency to enhanced accuracy. The fusion of man and machine, in many ways, holds the promise of an optimized, resilient, and dynamic warehousing future. Author: Christoph Buchmann December 18 th 2023 Disclaimer: The views expressed in this paper are solely the opinion of the writer and are not associated with any corporate entity. This is a personal blog. Any views or opinions presented are personal and belong solely to the author and do not represent those of people, institutions, or organizations that the owner may or may not be associated with in a professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any organization, company, or individual.
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AutoStore's success lay in its revolutionary design that allowed it to make efficient use of both horizontal and vertical space, eliminating the need for aisles and making the most out of every square inch of a facility. Ocado's Leap Forward While AutoStore was making waves in Europe, on the other side of the North Sea, Ocado was beginning to make its mark. Established in 2000, the British online supermarket quickly recognized the potential of automated warehousing. Although initially it relied on traditional automation methods, by the mid-2010s, in collaboration with Tharsus, it had developed its own cube storage solution. The result was the Ocado Smart Platform, which showcased a three-dimensional grid system, with robots operating on top. These robots, capable of collaborative operation and making real-time decisions based on the system's needs, offered a fresh perspective on what cube storage could achieve. 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The Attabotics Take Attabotics, a relatively newer entrant founded in 2015, took the cube storage system concept and gave it a unique spin. Instead of the conventional grid, Attabotics envisioned a system that mimicked the structure of an ant colony. Robots in this system could move both horizontally and vertically, ensuring faster retrieval times. Their compact system was not only space-efficient but also optimized for e-commerce operations, where speed and accuracy were paramount. Gridstore’s Vision Gridstore further expanded on the cube storage idea by emphasizing modularity. Their systems were designed to be scalable, catering to both small enterprises and large corporations. Gridstore's unique selling proposition was its ability to adapt and grow with a company's needs without significant overhauls. Benefits and the Evolutionary Drive So, what fueled this evolution in cube storage systems? The reasons are manifold: Space Optimization: Traditional warehousing methods, with their vast aisles and sprawling footprints, were inefficient. Cube storage systems, with their dense storage philosophy, revolutionized space utilization, a critical factor given the rising real estate costs. Scalability: Companies grew and so did their warehousing needs. Cube storage systems, with their modularity, allowed businesses to scale their operations without the need for massive infrastructural changes. Speed and Efficiency: The e-commerce boom demanded faster processing times. Cube storage systems, with their robotic retrievals, promised (and delivered) faster turnaround times, ensuring that orders could be processed in record times. Accuracy: Human errors in order picking or storage could have costly ramifications. Automated systems significantly reduced these errors, ensuring accurate order fulfillment. In conclusion, the evolution of cube storage systems showcases the warehousing industry's constant quest for better, faster, and more efficient solutions. From the pioneering efforts of AutoStore to the modern innovations of companies like Intellistore and Gridstore, the journey has been marked by innovation and a relentless drive to improve. For market insiders and observers, the cube storage system's story is a testament to the power of innovation and the promise of a more efficient future.
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iAutomate was born out of the need to simplify access to general warehouse automation information an
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