ARC Capital Expenditures Update Q1 2018

Executive Overview

Capital expenditures (CapEx) are a leading indicator for automation markets.  When confidence in vertical industry markets increases or declines, an increase or decline in investments in those markets often follows.

ARC Advisory Group’s periodic CapEx reports look at various automation markets (for discrete, continuous, and hybrid manufacturing industries) to identify trends in capital expenditures and their drivers.

We calculate our CapEx Index using the same rigorous methodology we use for the ARC Automation Index.  However, while the Automation Index is based on publicly available data provided by major supplier companies, our CapEx Report is based on publicly available date from major end user companies. 

Key Automation Capital Expenditures-related Takeaways for Q1 2018

• In the discrete manufacturing industries, CapEx is driven by new production technologies and increasing demand
• Structural shift has already begun in automotive
• Degree of automation is increasing in many factory automation markets (most prominently electronics & semiconductor) as wages increase
• Hybrid manufacturing industries squeezed between constant demand and shorter product lifecycles
• Many process industries are about to revamp
• Geopolitical environment adds significant uncertainty, reducing long-range investments

Table of Contents

• Discrete Industries
  • Aerospace & defense
  • Automotive
  • Electronics
  • Semiconductors
• Hybrid Industries
  • Food & Beverage
  • Pharmaceutical & Biotech
• Process Industries
  • Cement & Glass
  • Chemical
  • Metals
  • Mining
  • Oil & Gas
  • Power Generation/T&D
  • Pulp & Paper

ARC Advisory Group clients can view the complete report at ARC Main Client Portal or at ARC Office 365 Client Portal

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Keywords: Discrete Industries, Hybrid Industries, Process Industries, Capital Expenditures, ARC Advisory Group.