Automation Market Downturn Continues in Q3 2015

Author photo: Allen Avery
ByAllen Avery
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ARC Report Abstract

Automation suppliers saw their revenues drop by over 6 percent during the third quarter of 2015. Depressed oil and commodity prices, along with the strong dollar, had a significant impact on growth for many sup-pliers. Based on the corresponding drop in order activity, many suppliers have trimmed their expectations for business in the quarters ahead. Discrete automation suppliers continued to benefit from stronger investment activity in the electronics and automotive industries in Asia and North America.

Revenue and Order Intake Down Sharply in Q3
Compared to the third quarter of 2014, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries dropped by 5.9 percent (see Figure 2 on page 5). For the first nine months of 2015, revenues were off by about 2.5 percent. Suppliers to the discrete industries saw a 3.5 percent decrease in revenues; process industry suppliers saw their revenues fall by 7.5 percent, reflecting the slow-down in activity in the oil & gas sector. Among suppliers that report or-der intake, many saw large declines in activity during the quarter. On average, orders fell by nearly 12 percent during the quarter (Figure 3, page 6). For the first three quarters of 2015, order activity declined by over 4 percent.

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Keywords: Automation, Quarterly Supplier Results, Asia-Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.

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