Automation and Robotics Industry Struggling in the Current Year
Robots and Automation During the Challenging Season - Robots and automation during troubled times: managing technology amidst economic hardship.
Germany's robotics and automation sector is in a tough spot this year, forecasting a 10% drop in revenue to a staggering 14.5 billion euros, as per the VDMA Robotics + Automation association.
"The future growth prospects are shrouded in uncertainty across all sectors until the end of the year," said chairman Dietmar Ley. He notes that the US tariffs do a fantastic job of unsettling customers with their erratic swings. Furthermore, in certain situations, competitive advantage has been lost, particularly against Asian competitors.
If the tariff chaos ever calms down and becomes clear, customers could adapt to it, said Ley. Under normal circumstances, companies in this sector would usually have a decent chance of passing the additional costs onto their customers, given the fewer domestic companies in these areas in the US. In fact, there could even be positive catch-up effects once the dust settles.
The assembly systems segment is currently the biggest worry, being the largest of the industry's three sub-sectors. Here, a projected drop of 15% to 7.7 billion euros is expected this year. Ley doesn't anticipate a swift recovery in this area. He sees "no growth" for next year.
However, the image processing segment looks much better. The association expects a stable 3.1% increase in revenue this year, with an upward trend in the future. "If the tariff madness ever subsides, we expect growth in image processing for next year," said Ley.
Robotics, the third sub-sector, lies somewhere in the middle. By 2025, the industry predicts a decline of 5% in revenue to 3.7 billion euros. No projections have been made for the coming year here.
The industry looks towards the automatica trade fair in Munich, soon to be held in around three weeks, for potential impulses. The fair is expected to attract approximately 40,000 trade visitors and 780 exhibitors.
- Robotics
- Automation
- Crisis
- Crisis year
- Turnover
- VDMA
- Asia
Enrichment Data:
The German Robotics and Automation Industry: An Overview
Germany's machinery and equipment (M&E) sector plays a significant role globally. Known for its engineering prowess and innovation, Germany ranks among the top three in most M&E sectors. The sector is a substantial employer and contributes significantly to economic growth. Around 90% of companies are SMEs.
The Impact of US Tariffs
- Financial Impact: US tariffs on certain imported goods, including machinery and robotics components, may substantially increase costs for German manufacturers, potentially affecting profit margins. However, specific data on the 2020 impact is not readily available.
- Mitigation Strategies: German companies might have mitigated the costs by improving efficiency, investing in research and development, or diversifying export markets.
Asian Competition
- Rising Competition: Asian countries, particularly China, have rapidly expanded their robotics and automation sectors. This growth is driven by substantial investments in technology and manufacturing capabilities.
- Market Dynamics: The global industrial robotics market has experienced significant growth, with Asia, particularly China, dominating in terms of new robot installations. This competition may affect German companies' market share and pricing strategies.
- German Response: German companies have responded by focusing on advanced technologies such as Industry 4.0 initiatives and maintaining a high level of innovation and quality in their products.
Turnover in 2020
While specific turnover figures for the German robotics and automation industry in 2020 are not detailed in the search results, the sector's resilience and adaptability were likely tested by both US tariffs and Asian competition. The sector's strong R&D investments and focus on advanced technologies helped it maintain its competitive edge.
- The crisis in the automation and robotics industry, including Germany's own, is largely due to the uncertainty caused by US tariffs, as well as stiff competition from Asian countries, particularly China, in the global industrial robotics market.
- Employment policies within the robotics and automation sector might need to address these challenges, considering the anticipated decline in revenue for the assembly systems segment this year and the need for resilience and adaptability in the face of intense competition and trade policies.
