North American robot orders fall 21 percent in 2008

According to the Robotic Industries Association (RIA), North American-based robotics companies reported that new orders sold to North American manufacturing companies fell by 21 percent in units and 16 percent in dollars in 2008 compared to 2007. The sharp decline accelerated in the fourth quarter when orders fell by 26 percent in units and 33 percent in dollars compared with last year.

A total of 12,557 robots valued at $894.9 million were ordered by North American companies in 2008, down from 15,856 robots valued at $1.07 billion last year. When sales to companies outside North America are included, the totals are 14,109 robots valued at $979.4 million, a drop of 18 percent in units and 15 percent in dollars.

"2008 was extremely difficult for our members and 2009 likely will be a very rough year as manufacturing companies throughout the world deal with the global economic crisis," said Jeffrey A. Burnstein, executive vice president of RIA, the industry's trade group.

"Capital equipment expenditures are slowing dramatically in the automotive industry, traditionally the largest customer for robotics. In 2008, orders from automotive OEMs and their suppliers fell 37 percent in units and 32 percent in dollars," Burnstein said.

Despite the current difficulties in the automotive industry, there is reason for optimism, said Tammy Mulcahy of ABB Robotics, chair of RIA's Statistics Committee.

"In times of rising energy costs and rising environmental awareness, the demand for smaller, more economical, environmentally friendly and lower cost cars, are becoming increasingly important," Mulcahy noted. "In order to meet these demands in the short term, the car companies will have to restructure and to speed up development of these types of new models. I am sure the automotive industry will introduce new cars with less consumption, reduced emission and innovative technology. This will require new automation technology throughout the value chain. Robotics will surely benefit from such investments," she asserted.

Burnstein noted that there's also reason for optimism based on the strong nonautomotive results in 2008.

"Nonautomotive orders rose nine percent in units and seven percent in dollars over 2007. The strongest gains came in the semiconductor/electronics/photonics markets, where units rose 63 percent and dollars jumped 55 percent. Plastics and rubber orders increased 39 percent in units, 12 percent in dollars, while food and consumer goods saw increases of three percent in units and 51 percent in dollars," Burnstein explained.

"Non-automotive orders actually topped automotive orders, in terms of dollars, for the first time since we began collecting numbers 25 years ago," Burnstein noted. "In terms of units, the breakdown was 51 percent automotive, 49 percent non-automotive. This is very important for our industry as we continue to make progress in reaching new customers."

RIA estimates that more than 186,000 robots are now being used in the United States, placing the United States second only to Japan in overall robot use. It's estimated that more than one million robots are being used worldwide, with countries such as China and India rapidly expanding their investments in robotics.