Automation Market Ends Q1 2015 on a Down Note

Author photo: Allen Avery
ByAllen Avery
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ARC Report Abstract

Automation suppliers saw their revenues slip by about half a percent in the first quarter of 2015. The precipitous drop in oil prices, along with the strong dollar, had a significant impact on growth for many process industry suppliers. The corresponding drop in order activity does not bode well for business in the year ahead. Discrete automation suppliers continued to benefit from stronger investment activity in the electronics and automotive industries in Asia and North America, and Japanese sup-pliers continued to gain disproportionate benefit from a weaker yen.

Treading Water in Q1
Compared to the first quarter of 2014, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries dropped by 0.5 percent (see Figure 2 on page 5). Suppliers to the discrete industries saw a 2.6 percent increase in revenues; process industry suppliers saw their revenues fall by 2.9 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 rose by only about 1 percent (Figure 3, page 6).

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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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