INDUSTRIAL AUTOMATION MARKET SET TO GROW T
he Industrial Automation Equipment (IAE) market will
N
ow the dust has settled following the general election
it’s time for the new Conservative government to put its money where its mouth is and focus some attention on the country’s manufacturing industry. The hi- vis vest became the fashion accessory of choice throughout the campaign as the phrase ‘rebalancing the economy’ was uttered time and time again. Well now it’s time for the talking to stop and some action to be taken. Prime Minister, David Cameron certainly seems keen on increasing opportunities for apprenticeships, and with unemployment falling to its lowest level for seven years, things are heading in the right direction. But the UK’s manufacturing industry is still lagging behind that of our European neighbours when it comes to investment in automation technology. This is where the real opportunities exist that will enable UK manufacturers to compete on a more level playing field with the rest of the world, but it requires investment and the will to change, and that has to come from the top.
Neil Mead - Managing Editor
continue to grow, albeit at a contracted rate, in 2015 despite facing some headwinds, mainly in the form of low oil and commodity prices and weakened demand from some developing economies, according to industry analyst, IHS. These headwinds will dampen overall market revenue growth by approximately one or two percent this year. Improving global economic
growth, particularly in the United States, European Union (EU), Japan and India, will continue to support growing sales of IAE products in 2015. Although slowing growth in China and recessions in Brazil and Russia will limit this expansion, it won’t be enough to counter the improving conditions in the other regions, says IHS. While it’s likely
that decreased capital investment in the oil and gas and other commodity-related sectors will hurt sales of IAE products into these industries in 2015 and 2016, this decline will be offset by growth in other industries such as automotive, food and beverage, packaging, materials handling and robotics. For example, the oil and gas
industry, which accounted for around seven percent of total IAE sales in 2014, is expected to see an investment decline of about eight percent in 2015. This contraction in capital expenditure will be somewhat counterbalanced by increased spending in the cement & glass, chemicals, pharmaceuticals, food & beverage and other sectors. Of the three major IAE product
groups, motors and motor controls will be most hurt by low oil prices as sales into the oil and gas sector
comprised nearly eight percent of the total revenues for these product categories in 2014. Automation equipment will not suffer as much, with the exception of process controllers, which derived nearly 25% of their 2014 revenues from oil and gas. The least disturbed product type will be power transmission products. However, the market for hydraulic systems, which is part of this product group and is quite reliant on oil and gas industry sales, faces significant declines in 2015. Overall, the IAE market will
continue growing in 2015, with revenue expansion expected to come in at 4.5 percent over 2014 levels. As oil prices begin to recover, which is widely expected to occur by late 2015, the outlook for industrial automation suppliers will only brighten further.
www.ihs.com
B&R ON COURSE FOR GROWTH AND EXPANSION
Austrian automation specialist, B&R Industrial Automation hit record sales of €535 million in 2014 for an impressive 13 percent growth. “We intend to continue on this course for expansion,” announced general manager Peter Gucher at the company’s international press conference, held in mid-April in Hannover, Germany. B&R’s growth has been evenly distributed across
Europe, America and Asia. Recent months have seen the addition of new subsidiaries in Japan and Singapore, as the company simultaneously continues to fortify its presence in existing European and
American markets. New offices will soon be opening in Europe as well as in Central and South America. “We’re continually founding new subsidiaries and opening new local offices to further strengthen our market position,” explained Gucher. B&R serves European and American machine
manufacturers with production sites on all five continents. “In India, the partner country for this year’s Hannover Messe exhibition, we have established ourselves among the top three suppliers of automation solutions.
www.br-automation.com
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