A Tumultuous Year for German Robotics and Automation: US Tariffs and Beyond
The Gist
Advanced Technologies Aiding in Surmounting Challenges in Difficult Times - Robotics and automation advancements amidst economic turmoil
The German robotics and automation sector is bracing for a challenging year, anticipating a 10% dip in revenue, forecasted at €14.5 billion. Chairperson Dietmar Ley points to uncertainty generated by US tariffs and decreased competitiveness relative to Asian manufacturers as significant factors contributing to this downturn.
Correspondingly, the sub-sector of assembly lines is expected to plummet by 15%, with revenue projected at €7.7 billion. On the other hand, image processing seems more promising, with an anticipated revenue growth of 3.1%. Despite this, Ley expects little growth next year.
Uncertainty and Competition: The hallmarks of US Tariffs
- Uncertainty: The US tariffs cause confusion and hesitation among customers, dimming growth prospects.
- Competitiveness: Although tariffs can increase costs, factors such as product quality and innovation may help German companies absorb these costs and possibly pass them onto consumers, given fewer domestic US competitors.
Awaiting Recovery: Assembly Lines Face a Sluggish Road
There is little hope for quick recovery in the assembly lines segment, known for its cyclical nature in economic fluctuations. Given the sub-sector's current sliding revenue, Ley does not foresee any growth in the near future.
Image Processing: Shining Light Amidst the Gloom
Contrastingly, image processing appears relatively resilient, predicted to treat the industry to a stable 3.1% revenue growth this year. The association believes that, once trade disputes subside, the sector may witness growth in the upcoming year.
Robotics, the third sub-sector, is expected to face a 5% revenue decline by 2025, without any projections available for the coming year.
Amidst this tumult, the automatica trade fair in Munich is anticipated to attract around 40,000 specialist visitors and 780 exhibitors, potentially offering injecting needed energy and inspiration to the beleaguered industry.
Keywords
- Robotics
- Automation
- Crisis year
- Revenue
- VDMA
- Asia
- Tariffs
- Competition
- Recovery
- Image processing
- Assembly lines
- Given the predicted decline in revenue for the robotics and automation sector, it is essential for both community and employment policies to consider ways to support the industry, potentially through investing in technology and innovation to enhance competitiveness.
- As the assembly lines segment grapples with a prolonged slump, it is crucial to incorporate technology in employment policies to reskill workers for alternative roles within the broader sector, ensuring a steady workforce for the recovery phase.
