Representative End User Clients
Representative Automation Clients
Representative Software Clients
Automation suppliers saw their revenues drop by nearly 6 percent during the fourth quarter of 2016. Depressed oil and commodity prices continued to hamper growth prospects in the worldwide automation market. Process suppliers continue to suffer most from exposure to low oil prices. Some discrete automation suppliers fared better, thanks to stronger investment activity in the electronics and automotive industries, particularly in Asia. Suppliers expect this trend to continue for the foreseeable future, with many restructuring their businesses and enacting cost-cutting measures to improve the bottom line until project funds begin to flow anew.
Process Suppliers Continue to Struggle
Compared to the fourth quarter of 2015, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries dropped by 5.5 percent (see Figure 2, page 5). Process industry suppliers saw their combined revenues fall by nearly 3 percent, reflecting the slowdown in activity in the oil & gas sector. Suppliers to the discrete industries saw an 8 percent decrease in combined revenues. (However, discrete suppliers would have seen flat revenue growth, if General Electric had not recently divested its appliance and lighting businesses). For calendar year 2016, overall automation revenues slipped by nearly 5 percent.
Among suppliers that report order intake, many saw large declines in activity during the quarter. On average, orders fell by about 1 percent during the quarter, and fell by 3 percent for the entire year. (Figure 3, page 7).
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Keywords: Automation Suppliers, Quarterly Results, Asia-Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.