Discrete automation spending to slump

A new study by the ARC Advisory Group finds that spending on automation in discrete manufacturing leveled off in 2008 and may actually drop a bit in 2009 before rebounding. ARC sees a growth in the overall discrete automation market of 3.5% over the next five years, and predicts it will reach $22 billion by 2012.
By Plant Engineering Staff March 1, 2009

A new study by the ARC Advisory Group finds that spending on automation in discrete manufacturing leveled off in 2008 and may actually drop a bit in 2009 before rebounding.

ARC sees a growth in the overall discrete automation market of 3.5% over the next five years, and predicts it will reach $22 billion by 2012. Growth in the BRIC countries (Brazil, Russia, India and China) and Eastern Europe have fueled the recent growth.

“One reason the automation business did so well during the past few years and will continue to do well after settling of recent economic turmoil is the huge list of challenges and changing conditions in the global business environment that manufacturers must respond to,” said ARC senior analyst Himanshu Shah, principal author of ARC’s “Automation Systems for Discrete Industries Worldwide Outlook.”

“While manufacturers are more cautious when it comes to capital investments, they recognize that automation and energy savings are crucial to survive in the global economy,” the study stated. “Consequently, they ensure that their capital is well spent and are continuously examining their engineering, operations and maintenance practices to fully leverage the benefits of automation technology.”

Want this article on your website? Click here to see how ContentStream® can make that happen.