North American robot orders dropped 37% YoY in Q2

Automation is still considered inevitability for many industries.

North American robot orders fell by 37% YoY for Q2, marking the second consecutive decline, according to figures from the Association for Advancing Automation. The figures translate to a 29% drop in the first half of the year compared with H1 of 2021, when a record 44,196 orders were placed. A cocktail of factors, including a slow economy, COVID-19 headwinds, and high interest rates, have all contributed to the slowdown. Alex Shikany of A3 said: "While many companies continue to automate, others just don’t have the capital to invest right now, despite their struggle to find workers", such as those working in "dirty and dangerous" jobs. Non-automotive orders represented the majority of orders, comprising 52%, compared with automotive orders, which fell significantly.

Semiconductors and electronics, life sciences, pharmaceuticals, and biomedical sectors were the strongest contributors, while automotive components, consumer goods, and original equipment manufacturers were the biggest losers. Despite the recent decline, automation is still considered inevitability for many industries. The slowdown is viewed as a bump in the road rather than a permanent trend. Silver linings come in the form of non-automotive orders constituting the majority and exhibiting greater growth potential.