Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

In a first, most North American robots last year didn't go to automotive plants

Published 01/28/2021, 06:08 AM
Updated 01/28/2021, 07:41 AM
© Reuters. Starship Technologies food delivery robot  is seen at University of Wisconsin-Madison

© Reuters. Starship Technologies food delivery robot is seen at University of Wisconsin-Madison

By Timothy Aeppel

(Reuters) - For the first time last year, most of the robots ordered by companies in North America weren't destined for automotive factories.

The shift is part of a long-term trend of automation spreading into more corners of the economy which was accelerated by the COVID-19 pandemic. Online retailers have scrambled to expand capacity as more people buy goods online, while food and other types of factories have seen automation as a tool to keep lines running and workers safely separated.

Shipments of robots rose to 31,044 in 2020, a 3.5% increase over the prior year, with 52% going to plants that make things such as consumer goods and pharmaceuticals, according to data compiled by industry group the Association for Advancing Automation.

The orders were valued at $1.57 billion in total.

Orders by life sciences, pharmaceutical and biomedical companies rose 69% last year, the group reported, while demand from food and consumer goods companies grew by 56%.

"There's definitely been an upturn in particular areas because of the pandemic," said Alex Shikany, the group's vice president of membership and business intelligence. "The value proposition of automation is always efficiency, but with a pandemic it's also a way to space workers out and to run factories 24 hours a day without disruptions."

The robot industry, like most manufacturers, was hit hard during the pandemic as global supply chains ground to a halt and businesses closed. But business snapped back later in the year. Robot shipments in the fourth quarter were the second highest in history, up nearly 64% from the year-ago period, the report said.

The auto industry, a mix of assembly plants and parts suppliers, has long dominated the market for robots, although the level of demand can fluctuate depending on how many automakers are retooling for new models. Automotive accounted for two-thirds of robot shipments in 2017.

© Reuters. Starship Technologies food delivery robot  is seen at University of Wisconsin-Madison

But other sectors have since been catching up, reflecting the development of less expensive and more flexible robots that are useful in more industries as well as growing pressure to automate jobs in what was, until the pandemic, a tight labor market.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.