Representative End User Clients
Representative Automation Clients
Representative Software Clients
Automation suppliers saw their revenues drop by 5.5 percent during the fourth quarter of 2015. Depressed oil and commodity prices and the strong dollar continued to impact the performance of the automation market. Slowing economic growth in China, once a major growth engine for automation, has also contributed to the depressed revenues and order taking reported by many suppliers. Every quarter of 2015 saw negative growth to varying degrees and, taken as a whole, automation shipments decreased by nearly 4 percent for the year compared to 2014. Process suppliers bore the brunt of the decline in oil prices, but downstream sec-tors showed signs of life, offsetting some of the pain. Discrete automation suppliers finished the year in better shape thanks to stronger investment activity in the electronics and automotive industries in Asia and North America.
Revenue and Orders Continue to Slide in Q4
Compared to the fourth quarter of 2014, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries dropped by 5.5 percent (see Figure 2 on page 5). For the entire year, revenues were off by 3.7 percent. In Q4, suppliers to the discrete industries saw a 1.7 percent decrease in revenues. Process industry sup-pliers saw their revenues fall by 8.3 percent, reflecting the slowdown in activity in the oil & gas sector. Among suppliers that report order intake, many saw large declines in activity during the quarter. On average, orders fell by nearly 7 percent during the quarter (Figure 3, page 6). For all four quarters of 2015, order activity declined by nearly 5 percent.
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Keywords: Automation, Quarterly Supplier Results, Asia-Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.