(MENAFN- Robotics & automation News)
Robot orders in North America 'down 8 percent in first half of 2024'
The North American robotics market saw a decline in both units ordered (down 7.9 percent to 15,705 units) and revenue (down 6.8 percent to $982.83 million) during the first half of 2024 compared to the same period in 2023.
Despite some bright spots in specific industries, the overall performance reflected in the latest report from the Association for Advancing Automation (A3) shows a pullback in robotics investments across key areas, influenced by ongoing economic headwinds faced by North American manufacturers during the first six months of 2024.
Jeff Burnstein, president, A3, says:“Rising inflation and borrowing costs have dampened spending on robotics, with many companies opting to delay major investments.
“Despite these challenges, the push for operational efficiency and workforce augmentation continues to drive demand for robotics in industries such as food and consumer goods and life sciences, among others.
“As companies navigate labor shortages and increased production costs, the role of automation is becoming ever more critical in maintaining global competitiveness.”
Automotive sector unit sales up, revenue down
Automotive original equipment manufacturers ordered 4,159 units in the first half of 2024, marking a 14.4 percent increase over the first half of 2023. However, revenue dropped by 12 percent to $259.96 million.
By contrast, the Automotive Components sector declined significantly, recording a 38.8 percent drop in orders to 3,574 units, and a 27.3 percent decline in revenue to $191.93 million.
This downturn suggests component manufacturers pulled back on automation investments in the first six months of 2024, likely due to tighter budgets or softer demand forecasts.
Non-automotive sectors indicate potential bright spot
On the positive side, Food & Consumer Goods reported a strong performance, with orders surging by 85.6 percent to 1,173 units and revenue rising 56.2 percent to $62.84 million.
This growth reflects the increasing reliance on robotics for efficiency in food processing and packaging as companies seek to address labor shortages and rising costs.
The life sciences industry was also a bright spot, with 1,007 units ordered, representing a 47.9 percent increase, and revenue growing by 86.7 percent to $47.29 million, reinforcing the sector's ongoing reliance on robotics for efficiency and precision.
Semiconductor and electronics/photonics, however, saw orders fall by 40 percent to 603 units, with revenue down 41.4 percent to $23.43 million, possibly driven by slower capital spending in semiconductor production due to global supply chain issues and decreased demand.
Plastics and rubber also experienced moderate declines in both orders and revenue, but these were less pronounced compared to other industries.
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