Factory automation industry has high hopes for 2013

In a report by IMS Research, it is estimated that the market for factory automation equipment is set to grow 6.2 percent in 2013. This is due to the improved conditions worldwide for the manufacturing sector.

The more optimistic outlook for 2013 contrasts with the anemic market conditions of last year that had been aggravated by the interconnected nature of a globally linked space, said Jenalea Howell, research manager for the Industrial Automation service at IHS.

Conditions all around have now improved, however. For one, leading indicators—including machinery orders and manufacturing activity—point to increasing demand for industrial products during the next six months.

Moreover, progress has been observed in the markets of China, Europe and the United States in the first half this year, fueling confidence that the IAE space is headed toward renewed vigour.

In China, manufacturing indices indicate that a slow and steady improvement that began in September 2012 has continued through the first five months of 2013. China is also reporting that inventory replenishment has started to occur in equipment markets of extremely low levels last year.

Meanwhile in Europe, increases in German machine-tool orders also point toward bolstered demand that could rebound to the IAE market.

In addition to the leading indicators being improved for 2013, increases in the confidence in the US economy overall – in housing, resource exploration, and export – are a good sign for the factory automation equipment industry. This coupled with increased economic strength worldwide signals a strong year for factory automation equipment.

Signs of economic health are likewise springing up in the US, where greater growth stemming from a variety of factors–ranging from rising natural gas exploration and production, to strengthening housing markets, to rising exports—will help propel demand for industrial automation equipment and boost  the IAE global market.

Moreover, the global interdependence that hampered market expansion last year will prove to be a boon this time around, especially because growth of the US in 2013 will not be a key requirement to foster overall expansion of the worldwide IAE space.

To read more, head over to Manufacturers’ Monthly.

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