Not even a category as hot as robotics can escape the currents of macroeconomic trends. In fact, figures recently reported by the newly formed automation advocacy group, A3, show North American robotics market declining during the first half of 2024 sales and revenue.

Industrial robotics orders in H1 fell 7.5% yr-yr to 15,705 units. Revenue dropped 6.8% to $982.83 million for the two combined quarters. The association blamed the headwinds on broader economic conditions at its member manufacturers.

Breaking things down category by category presents a mixed bag. Automotive is by far the biggest employer of industrial automation. And that market also experienced its share of ups and downs. On the OEM side, order numbers increased by 14.4%, while revenue dropped 12%. With automative components manufacturers, both sales and revenue were down, 38.8% and 27.3%, respectively.

"Rising inflation and borrowing costs have dampened spending on robotics, with many companies opting to delay major investments," said A3 President Jeff Burnstein in a statement.

The market for semiconductors has been hurt more severely, primarily because of persistent supply-chain problems; orders fell 40% compared with a year ago, revenue declined 41.4%

Figures have been falling sharply since the pandemic boosted sales for everything: 2023 is a free fall at 31,159 for the year. Sales had increased to 44,196 for the year in 2022 and 39,708 for 2021.

But A3 also sees a few silver linings among the unhappy figures. "Despite these challenges, the drive for operational efficiency and workforce augmentation continues to underpin demand for robotics across the food and consumer goods and life sciences sectors, among others," said Burnstein.
The bright spot was life sciences, with a sales increase of 47.9% and revenue up 86.7%. Food and consumer goods were up an even more impressive 85.6% in orders and 56.2% in revenue.

None of the slowing apparent in today's report are grounds for panic. There was a naturally bound period to adjust after pandemic buying frenzies. And while bigger economic issues are presenting headwinds, automation remains an inevitability for most industries; it's a matter of when, not if.