Automation Supplier Financials - Q4 Financial Update 2020

Introduction

In this Strategy report, ARC Advisory Group includes the most recent results for major automation suppliers financials that are publicly reported. To convert the revenues of non-US suppliers to US dollars, we average exchange rates for foreign currencies used for the entire fourth quarter of 2020. The euro appreciated by 1.9 percent relative to the dollar from Q4 2019, while the yen strengthened by 2.3 percent over the same period.

With this latest automation supply side-market update, ARC has increased the number and breadth of automation suppliers covered, based on a combination of publicly reported data and ARC’s own extensive research database. We’ve also added selected business intelligence visualizations. Readers should contact their ARC client managers if they’d like to gain additional access to this market intelligence as it applies to both regional and sector-specific supply side automation market trends.

Executive Summary

• After a sharp decline during the first half of 2020, the automation market saw a rebound starting in Q3, rising by nearly 5 percent, while the fourth quarter saw growth of nearly 7 percent.
• Economic activity recovered as the effects of the COVID-19 pandemic abated somewhat, and some discrete suppliers saw brisk activity in the technology sectors. Most suppliers saw increases in both revenues and orders during the quarter.
• While some uncertainty remains, it is likely that more widespread availability of a COVID vaccine will further improve market growth prospects in 2021.

Market Trends

• Compared to the fourth quarter of 2019, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries increased by nearly 7 percent in Q4 2020.
• Process industry suppliers saw their combined revenues grow by about 6 percent during the quarter, while suppliers to the discrete industries saw a 9 percent increase in revenues.
• Among suppliers that report order intake, the results were somewhat mixed, with some vendors reporting large increases and others seeing appreciable drops, particularly process-centric suppliers.

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