Robot orders decline 17% in first quarter, but jump in non-automotive sectors

May 26, 2008

North American robotics companies reported that new orders sold to North American manufacturers fell 17 percent in the first quarter of 2008 from the same quarter in 2007, but revenue rose five percent. However, orders to non-automotive companies surged, an encouraging sign for future robotics growth, according to the Robotic Industries Association (RIA).

“In the non-automotive sector, we saw revenue growth of 116 percent in food and consumer goods. In semiconductor/electronics/photonics, unit orders were up 58 percent and revenue was up 96 percent. When we come to metals, orders in both units and revenue were up 50+ percent,” says Åke Lindqvist, chairman of the RIA Statistics Committee. “This most likely means that the value-add in the orders to the non-automotive sector are increasing.”

A total of 3,828 robots valued at $288.1 million were sold in the opening quarter by North American based robotics companies, according to new figures released by the RIA.

The first quarter numbers reveal the continuation of a downturn in purchases by the automotive industry, which began in the second half of 2007. Orders to automotive manufacturers and their suppliers fell 34 percent in units. Traditionally, the automotive industry accounts for some 65 percent of robot orders in North America.  In the first quarter, sales to automotive customers accounted for just 52 percent of total orders.

“Welding and coating/dispensing orders showed big declines because these are heavily tied to automotive,” said Jeffrey A. Burnstein, executive vice-president of the RIA. “Assembly and material handling applications showed gains because many of these applications are also extensively used in non-automotive industries.”
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