Machine safeguarding market feels effects of global recession

ARC Advisory Group discusses rebound of machine safeguarding solution market in second half of 2010.

01/20/2011


Machine safeguarding market is expected to have increased in the second half of 2010, after dipping in response to the recession.

The turbulence in the global marketARC-Advisory-Group Logo effectively put the brakes on the machine safeguarding market around the third quarter in 2008. Effectively, the automotive market and general machinery market came to a halt leaving those suppliers with a dependency on these sectors to accept the inevitable, or more specifically, scale business to the opportunity. Thus, 2009 started with the deepest global downturn in recent history. Fortunately, in the second half of 2009, the economic downturn ended and a modest recovery began in both developing and advanced economies as global production and trade started to rebound. In advanced economies, the beginning of a turn in the inventory cycle and unexpected strength in US consumption contributed to positive developments. The worldwide market for Machine Safeguarding Solutions will decline in 2009, but a strong rebound has begun in the second half of 2010 according to a new ARC Advisory Group study.

Machine market downturn

Europe was late to feel the real impact of the banking and automotive crises and continued to experience reasonably good business conditions up until October/November 2008. Back orders in machinery continued to buoy up the market, however new orders started showing signs of weakness around this time. It wasn’t until December 2008 that panic struck in Europe and the machinery market collapsed. This was the precursor to the downturn in the machinery market that continued to decline in Europe, North America, and Japan throughout 2009. “The consequence of this crisis resulted in a reorder of market leadership as the wave of the financial crisis coursed throughout each region,” according to Research Director Sal Spada, the principal author of ARC’s new study “Machine Safeguarding Solutions Worldwide Outlook”.

Safety is a global mantra

Numerous catalysts will drive market growth faster than the normal recovery allows. Safety is becoming the mantra on a global scale and across numerous industries. The automotive industry, which historically dominated the market for safeguarding solutions (with the high concentration of robotic lines, stamping, metal fabrication, and metal working operations), has also been followed by several other industries that recognized the productivity benefits achievable via safeguarding solutions. Food & beverage, textile, aerospace, and furniture and wood products will continue to create the additional pull needed to drive the growth in this market.

North America declined before EMEA

The North American market began a decline before EMEA felt the pain. With the automotive market already depressed and the entire financial infrastructure facing cataclysm, the machine safeguarding market in this region declined rapidly. A wide range of industry end users cancelled their machinery orders with OEMs. In Asia, Japan also faced a huge contraction as the automotive and housing industries around the world declined rapidly due to a frozen credit market. However, compared to the advanced economies, the Asian emerging economies fared well due to substantial stimulus, a stronger financial infrastructure, and rapid turnaround in domestic consumer demand for goods and services. The machine safeguarding market declined in these emerging economies less severely. However, the domestic demand for machinery in these regions was not substantial enough to offset the dependency on machinery exports typically requiring the safeguarding requirements of the mature economies.

More information on this study

www.arcweb.com ARC



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Your leaks start here: Take a disciplined approach with your hydraulic system; U.S. presence at Hannover Messe a rousing success
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me