First quarter 2006 robot sales impacted by downturn in automotive market
First quarter 2006 robot sales impacted by downturn in automotive market
Keywords: Markets, Robotics
New orders for North American robotics companies fell 30 per cent in the first quarter of 2006, according to statistics released by Robotic Industries Association (RIA), the industry's trade group headquartered here.
A 39 per cent decline in purchases by automotive OEMs and component suppliers was the major contributor to the downturn, according to RIA. The automotive industry is the largest customer for robotics, accounting for more than 60 per cent of all robot purchases in North America.
“The automotive OEMs and their tier one supplier markets are cyclical in terms of their purchases of robots,” Vincent said. “We saw a big spike in automotive OEM and tier one purchases at the beginning of 2005, when we had a record start to the year, so we're not surprised to see a downturn this quarter. Also, given the economic difficulties faced by the automotive industry,it is possible that new investments in technologies such as robotics were delayed”.
Vincent said he was encouraged by the fact that sales of robots to non-automotive industries such as food, consumer goods, pharmaceuticals and life sciences increased in the first quarter. As a result, the non- automotive share of robot orders rose to 40 per cent as compared with 30 per cent in the first quarter of 2005.
“For the robotics industry to reach its full potential, we know that growth is needed in the non-automotive sectors as well as in automotive, so the increased share for non-automotive orders can be viewed as a positive sign”,Vincent explained.
A total of 3,722 robots valued at $272 million were ordered by North American manufacturing companies in the January through March quarter. When orders received by companies outside North America are included, the totals rise to 3,983 robots valued at $285.3 million.
RIA estimates that some 160,000 robots are now installed in American factories, placing the USA second only to Japan in robot use.
For more information about RIA and the robotics industry visit web site: www.roboticsonline.com or contact RIA.
