North American Manufacturers Show Renewed Thirst for Automated Production Equipment

Keywords: Motion Control, Unproductive Manufacturing, Competitiveness, Automotive Sector.

The financial crisis that devastated the US and Canadian manufacturing sectors resulted in a significant contraction in automation equipment pur-chases in 2009 through the second quarter of 2010. Manufacturers curtailed capital equipment expenditures, reduced labor, and eliminated unproductive manufacturing facilities. On the plus side, the downturn allowed North American manufacturers to reassess operations and stage planned improvements as the market demand for manufactured goods improved. Furthermore, many industries reassessed the competitiveness of manufacturing in North America.

Rebound Started in Q4 2010
In the third quarter of 2010, the automotive market created a tremendous surge in demand for new machinery and equipment. After almost two years of reconfiguring existing production lines and redeploying equip-ment claimed from shut down operations, the automotive OEMs and tier 1 manufacturers started purchasing new equipment. The downturn created a pent up demand for machinery and equipment that ARC Advisory Group expects to continue through the end of 2012. The rebound of the automotive sector following the restructuring of General Motors and Fiat's acquisition of Chrysler stimulated demand for new machinery in this sector at double-digit growth rates.

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