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Inevitably, the figures were poised to contract. In the broader perspective, the pandemic has proven to be a transformative force for automation on a comprehensive scale, and specifically, within the realm of robotics. However, not even these sectors remain immune to overarching macroeconomic trends. As per recent statistics furnished by the Association for Advancing Automation (A3) – the entrusted custodian of such statistical tracking – the trajectory of North American robot orders displayed a substantial 37% year-over-year descent for the second quarter (April to July).
This numerical representation, encompassing a 20% dip in valuation, signifies the second consecutive downturn. When considering the combined data for the two successive quarters, it illustrates a significant 29% plummet from the first half of the year 2022. The latter portion of this most recent half-year period bore witness to a cumulative count of 16,856 robots. A multitude of influencing factors are, naturally, in play here.
Before succumbing entirely to pessimism and despair, it is prudent to acknowledge that the year 2022 bore witness to a record-setting period, with 44,196 orders. This marked an impressive 11% surge in comparison to the preceding record established in the year 2021. The comprehensive narrative here signifies a noticeable regression from the previously achieved record growth, which is coinciding with the kind of overarching macroeconomic challenges that have exerted detrimental effects across almost all sectors.
Alex Shikany of A3 reflects, “Over the course of the last quinquennium, we have observed a steady escalation in robot orders, as diverse industries grappled with labor scarcities. Additionally, numerous non-automotive enterprises have begun to recognize the substantial value that automation affords.” Shikany goes on to emphasize, “Yet, subsequent to this post-COVID surge, we are witnessing a contraction in procurement. This is exacerbated by the sluggish economy and elevated interest rates. While numerous firms persist in their endeavors to embrace automation, certain entities currently lack the requisite capital for investment, despite their challenges in sourcing labor for the numerous monotonous, unclean, and perilous positions that remain vacant.”
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As one who often assumes a perpetually pessimistic stance, I find limited reason for alarm within these statistical indicators. Analogous to the eventual repercussions experienced by investments in the realm of robotics due to the deceleration of venture capital, this serves as a poignant reminder that scarcely any industry can truly withstand economic downturns in an absolute sense (subject to the delineation of terms, I presume). While not an economist by trade, I ardently assert that, in adopting a long-term perspective, we are grappling with a transient obstacle. It would indeed be a formidable challenge to identify an individual who genuinely regards automation as anything other than an inescapable eventuality, replete with both advantageous and unfavorable consequences.
A noteworthy nuance (and perhaps a glimmer of hope) manifests in the fact that orders for non-automotive robotics constituted a majority share, at a commendable 52%. Though both sides of this spectrum experienced declines, the divergence was far more profound, with a staggering 49% dip for non-automotive entities compared to a comparatively modest 21% for their automotive counterparts. The notion of silver lining gains credence here owing to the well-established legacy of the automotive sector spanning decades. Meanwhile, non-automotive pursuits possess a significantly broader scope for growth and advancement.
In accordance with A3’s assessment, “The most robust demand during the second quarter originated from the semiconductor and electronics industries. Following closely were the life sciences, pharmaceuticals, biomedical sectors, in addition to plastics, rubber, and metals. Conversely, noticeable downturns were observed in sectors such as automotive components, food and consumer goods, and automotive original equipment manufacturers.”
The automotive domain has, without a doubt, faced its own array of tribulations in the preceding year, encompassing issues like chip scarcities, production standstills, and curtailed expenditures.
