Affiliation for Advancing Automation’s newest report reveals 37% fewer robots had been bought in April by means of June of 2023 than throughout the identical interval in 2022, a report 12 months; downturn exacerbated by sluggish financial system and excessive rates of interest
A sluggish U.S. financial system and excessive rates of interest have taken a toll on robotic orders in North American, leading to a decline for the second quarter in a row after report purchases in 2021 and 2022. In accordance with the newest report from the Affiliation for Advancing Automation (A3), corporations ordered 7,697 robots valued at $457 million from April to July 2023, a 37% decline in robotic orders and 20% drop in worth over the identical interval in 2022.
When mixed with first quarter outcomes, the robotics market in North America is down 29% in comparison with the primary half of final 12 months with a complete of 16,865 robots ordered. This drop comes after a report 2022, the place North American corporations ordered 44,196 robots, up 11% over 2021, the earlier report.
“During the last 5 years, we have seen a gradual acceleration of robotic orders as all industries have struggled with a labor scarcity and extra non-automotive corporations acknowledge the super worth automation gives,” stated Alex Shikany, vice chairman of membership and enterprise intelligence, A3. “After this post-COVID surge, nonetheless, we’re seeing a disadvantage in purchases, exacerbated by the sluggish financial system and excessive rates of interest. Whereas many corporations proceed to automate, others simply do not have the capital to take a position proper now, regardless of their battle to search out employees keen to do lots of the uninteresting, soiled and harmful jobs that stay unfilled.”
The continuing labor scarcity, particularly in manufacturing (down one other 2000 jobs in July, based on the U.S. Bureau of Labor Statistics) stays a key driver of automation. An growing pattern in the direction of reshoring duties right here in North America is one other contributing issue.
“File attendance at tradeshows similar to Automate in Detroit this 12 months present even better curiosity in robotics and automation than ever earlier than, however as these numbers present, not all are prepared or in a position to pull the set off simply but,” stated Jeff Burnstein, president of A3. “When the financial system improves, nonetheless, the businesses who’ve discovered in regards to the newest improvements in automation and the way they will help them enhance productiveness, cope with labor shortages and get to market sooner shall be prepared.”
Automotive vs. Non-Automotive Ordering at Extra Equal Charges Non-automotive prospects ordered extra robots within the second quarter of 2023 than automotive prospects, with 52% of models going to non-automotive industries and 48% going to automotive OEMs and element suppliers. Each classes had been down in comparison with the second quarter of final 12 months, nonetheless, with non-automotive orders down 21% and automotive orders down 49%. The strongest demand in Q2 got here from the semiconductor & electronics industries, adopted by life sciences/pharma and biomedical, plastics & rubber and metals, with automotive parts, meals & client items and automotive OEMs displaying the most important drops.
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About Affiliation for Advancing Automation (A3) The Affiliation for Advancing Automation (A3) is the main world advocate for the advantages of automating. A3 promotes automation applied sciences and concepts that remodel the best way enterprise is finished. Members of A3 signify over 1200 producers, element suppliers, system integrators, finish customers, tutorial establishments, analysis teams and consulting companies that drive automation ahead worldwide.
A3 hosts various industry-leading occasions, together with Automate 2024 (Could 6-9, 2024, in Chicago); the Worldwide Robotic Security Convention 2023 (October 11th of September, Pittsburgh, Pennsylvania); AI & Good Automation Convention 2023 (October 10-11, 2023, Pittsburgh, Pennsylvania); A3 Enterprise Discussion board (January 15-17, 2024, Orlando, Florida) and the Autonomous Cellular Robotic & Logistics Convention (October 8-10, 2024, Memphis, Tennessee)