VelocityEHS Purchase Of Industrial Ergonomics Specialist Humantech Confirms Ambitious Growth Plans
VelocityEHS today announced the acquisition of industrial ergonomics software and services firm Humantech. Whilst the commercial terms of the deal were not announced, VelocityEHS will be adding 50 employees to its existing 400 employees. Considering the bump up in employee numbers and move into a new EHS budget category, this is a strategically material deal for VelocityEHS and reflects prior Verdantix analysis that the Chicago-headquartered EHS software and product compliance vendor is set for a sustained period of rapid growth following its acquisition by CVC from Actua. A deal Verdantix estimated at between $280 million and $300 million.
What does VelocityEHS get from the acquisition? Humantech, headquartered in Ann Arbor, Michigan is a unique provider of cloud-based software for industrial ergonomic hazard identification and resolution. Staffed by certified ergonomists and drawing on four decades of market experience, the Humantech team have codified their broad expertise in ergonomic risk assessment into the Humantech System for industrial ergonomics and Ergopoint for office ergonomics. In doing so, they have developed a scalable system to tackle ergonomic issues in a consistent way across a business.
Key to this strategy is that Humantech assesses the ergonomic risks of specific work activities – such as loading beer kegs into a truck or packing fleeces into a wool compressor – as opposed to assessing the ergonomic issues of individual workers. Users of the software can identify ergonomic hazards, produce a direct cause analysis and apply improvements which can be replicated across all similar work stations worldwide. The roll out across multiple sites is co-ordinated with the management module in the Humantech System. An automotive parts customers has deployed the software across 69 sites and implementation of ergonomic hazard reduction initiatives can be monitored remotely by a single manager.
Humantech claims, based on US Bureau of Labor Statistics, that approximately $15 billion is spent in the US annually on muscular-skeletal disorders resulting from industrial ergonomics hazards. The business case weaves together benefits from injury reduction, improved engagement of frontline workers, increased productivity and better quality. Given that VelocityEHS has more than 13,000 customers most of whom are in health and safety roles, there are clear and obvious synergies for Humantech as the well-oiled VelocityEHS sales team can immediately cross-sell the industrial ergonomics solution. Likewise, VelocityEHS will benefit from Humantech’s contracts with large manufacturers such as ABB, BASF, Bendix, Cummins, ECOLAB, Gates, Tyson and UTC Aerospace Systems. Immediately integrating the Humantech System cloud software into the VelocityEHS software platform has not been flagged as a priority and the Humantech brand will continue to exist for the foreseeable future.