North American robot orders dropped 31 per cent in first quarter of 2009, but rose 16 per cent from fourth quarter of 2008

Citation

(2009), "North American robot orders dropped 31 per cent in first quarter of 2009, but rose 16 per cent from fourth quarter of 2008", Industrial Robot, Vol. 36 No. 5. https://doi.org/10.1108/ir.2009.04936eab.002

North American robot orders dropped 31 per cent in first quarter of 2009, but rose 16 per cent from fourth quarter of 2008

Article Type: News From: Industrial Robot: An International Journal, Volume 36, Issue 5

Industrial robotics companies reported that orders to North American manufacturers fell 31 per cent in the first quarter of 2009 when compared with the same quarter in 2008. However, the first quarter showed a gain of 16 per cent over the fourth quarter of 2008, according to new statistics from Robotic Industries Association (RIA), the industry's trade group.

“As expected, the current economic crisis is having a major impact on robotics companies, not just in North America, but throughout the world,” said Jeffrey A. Burnstein, President of RIA.

“The sharp decline in year over year unit figures was not unexpected. We are encouraged, however, that the numbers jumped sharply from the last quarter of 2008. We're hopeful that orders will continue to improve as the economy heads toward recovery,” Burnstein said.

A total of 2,648 robots valued at $159.9 million were ordered by North American companies in the first quarter of 2009, a decline of 31 per cent in units and 44 per cent in dollars.

Burnstein noted that robot orders from hard-hit automotive manufacturers and suppliers fell 31 per cent, the exact same amount as the overall decline. Automotive related orders accounted for 52 per cent of overall new orders. Non-automotive orders, which accounted for 48 per cent of new orders in the first quarter, fell 30 per cent.

Tammy Mulcahy of ABB Robotics, who Chairs RIA's Statistics Committee, did point to some bright spots in terms of non-automotive industry purchases. “The food & consumer goods industries posted a 50% increase in robot orders in the first quarter, while the life sciences/pharmaceutical/biomedical/medical devices industries saw a 76% increase,” she said.

“These industries, along with many others, offer promising long-term applications for robotics that are largely untapped. The economy may be off to a slow start in 2009, but that doesn't mean companies aren't planning ahead for better times. The best run companies, looking to not just survive the economy, but thrive in it, are investing in automation. An economic recovery will happen. When it does, companies need to be positioned to take full advantage of it.” Mulcahy asserted.

While the timing of the recovery remains unclear, Mulcahy cited encouraging news that could be a strong positive for robotics companies. “Business inventories declined $100 billion in the first quarter, according to new government reports. This means that once consumers start spending again, companies will have to start ramping up production since they won't have products on hand to meet the demand,” Mulcahy explained.

RIA estimates that more than 188,000 robots are now being used in the USA, placing the USA second only to Japan in overall robot use. It is estimated that more than one million robots are being used worldwide, with countries such as China, Korea and India rapidly expanding their investments in robotics.

For more information about RIA and the robotics industry, visit: www.robotics.org