Representative End User Clients
Representative Automation Clients
Representative Software Clients
Overall, automation suppliers saw their revenues venture into positive territory during the second quarter of 2017, increasing by over 3 percent compared to the same quarter the previous year. Discrete-centric suppliers continued to see strong gains in both revenues and new orders, reflecting growth in the automotive and electronics sectors in many regions around the world. The oil & gas industry has begun to show signs of life, with targeted capital investments aimed at improving reliability and process efficiency. This has helped stem the revenue losses of many traditional process suppliers.
Order taking grew at rates not seen since late 2014, marking the second consecutive quarter of growth after two years of declines. Process suppliers saw gains, but discrete suppliers posted double-digit growth, so we should see strong sales in the quarters to come.
Strong Growth for Discrete Suppliers
Compared to the second quarter of 2016, the total combined revenues of automation suppliers to both the process and discrete manufacturing industries grew by 3.2 percent (see Figure 2). Process industry suppliers saw their combined revenues grow by 1.5 percentage points, reflecting the continued slowdown in activity in the oil & gas sector, and many still reported double-digit declines in sales. (Without a recent large acquisition by Thermo Fisher, revenues would have fallen by slightly under 0.5 percent). Suppliers to the discrete industries saw a 5 percent increase in combined revenues. While recent acquisitions and divestitures (Parker, GE) had an effect, many suppliers reported strong double-digit organic growth.
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Keywords: Automation Suppliers, Quarterly Results, Asia-Pacific, Europe, Middle East & Africa, Latin America, North America, ARC Advisory Group.