Surviving the Storm: The Crisis Year for German Robotics and Automation
**Year of Struggle: Automation and Robotics Amidst Hardship** - Robotics and automation during turbulent times
2021 isn't prosecution for the German robotics and automation sector. The industry is on track for a 10 percent drop in turnover, landing at a disappointing 14.5 billion euros, according to the VDMA Robotics + Automation association.
"The growth horizons are pretty bland across all sectors until the end of the year," quips chairman Dietmar Ley. He attributes this gloomy outlook to a combination of factors: global uncertainty, unsettling tariffs, and a striking loss of competitiveness, particularly when compared to Asian counterparts.
Tariffs cast a shadow over the industry, with customers left guessing about their future impacts. Ley shares, "If there was clarity regarding the tariff heights, customers could at least adjust, and companies might have a chance to pass on the additional costs." The situation becomes even more challenging when you consider the limited number of domestic companies in the US, making it harder for German companies to navigate these murky waters.
But don't cry for the assembly lines quite yet. They represent the largest subsector of the industry, expecting a 15 percent drop in turnover to hit 7.7 billion euros this year. Ley warns of a slow recovery, as this area tends to respond sluggishly to cyclical developments. He predicts "no growth" for the coming year.
However, the picture isn't all bleak. Image processing, the sector's charming contender, is projected to maintain a stable turnover of 3.1 percent this year and may even boom in the future. Ley is hopeful, "If the trade disputes are resolved at some point, we anticipate growth in image processing for next year."
Robotics, the hopeful middle child, is expected to dwindle to 3.7 billion euros by 2025. No forecast exists for next year in this division.
On the horizon, the automatica trade fair in Munich, anticipating around 40,000 trade visitors and 780 exhibitors, may offer some respite for the ailing industry in just a few weeks. Let's hope it provides the industry with much-needed impetus for recovery.
- Robotics
- Automation
- Crisis year
- Crisis
- Turnover
- VDMA
- Asia
Insights from the Enrichment Data:
Amid the challenges presented by the global pandemic and trade tensions, the focus on automation has grown pronounced, with companies recognizing its key role in enhancing resilience and efficiency in manufacturing. Investments in AI and robotics have also intensified, particularly for tasks requiring minimal human intervention. Despite short-term hurdles, these investments are expected to fuel the long-term growth and technological advancement of the sector.
The pandemic has also emphasized the need for flexible and adaptable assembly lines, prompting companies to invest in smart technologies for improved efficiency. Image processing technologies have become increasingly important for quality control and inspection tasks, while robotics have found a niche in tasks that can be performed remotely or with minimal human intervention.
- Despite the 10 percent drop in turnover predicted for the German robotics and automation sector in 2021, according to the VDMA Robotics + Automation association, investments in AI and robotics for tasks requiring minimal human intervention continue to intensify.
- The crisis year for German robotics and automation has highlighted the importance of automation in enhancing resilience and efficiency in manufacturing. Additionally, the need for flexible and adaptable assembly lines has prompted companies to invest in smart technologies, especially image processing for quality control and inspection tasks.
