Representative End User Clients
Representative Automation Clients
Representative Software Clients
Automation suppliers saw their revenues drop by 6 percent during the third quarter of 2016. Depressed oil and commodity prices and, to a lesser extent, the strong dollar, continued to rein in the performance of the automation market. Process suppliers continue to suffer most from exposure to low oil prices. Discrete automation suppliers fared better, thanks to stronger investment activity in the electronics and automotive industries. Suppliers expect this trend to continue for the foreseeable future, with hybrid and discrete industries outperforming the heavy process industries, which will likely see their fortunes rise when oil and commodity prices recover.
Process Suppliers Continue to Struggle
Compared to the third quarter of 2015, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries dropped by 6 percent (see Figure 2, page 5). Process industry suppliers saw their revenues fall by nearly 5 percent, reflecting the slow-down in activity in the oil & gas sector. Suppliers to the discrete industries saw a 7 percent decrease in revenues. (However, this decline would only have been 3 percent, if General Electric had not recently divested its appliance and lighting businesses). For the first three quarters of 2016, overall automation revenues slipped by about 4 percent.
Among suppliers that report order intake, many saw large declines in activity during the quarter. On average, orders grew by about 2 percent during the quarter, and fell by 3 percent for the first three quarters of the year.
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Keywords: Automation Suppliers, Quarterly Results, Asia-Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.