Posted By Paul Tate, October 06, 2011 at 6:43 AM, in Category: Factories of the Future
The recent economic downturn hit the global industrial machinery business hard as manufacturers around the world slashed back on equipment renewal projects and trimmed investment budgets. Traditionally long lead times for such capital-intensive factory automation meant it was amongst the last sectors to feel the pain, but also means it is one of the last manufacturing sectors to recover too.
But a new report from UK industry analysts (IMS Research ) suggests that 2011 is set to be a record year for worldwide industrial machinery production as manufacturers invest strongly in new capital equipment and expand their operations and plants around the world.
The IMS report predicts an aggregate 10.2 percent global growth this year, creating record global revenues and eclipsing the sector’s previous high in 2008. Continuing growth is expected through to 2014.
This year’s improvement is likely to be strongest in the US, followed by Germany. China and India will also continue to show strong performance as local companies invest in more factory automation to increase productivity, says IMS. Japan meanwhile, traditionally among the top three countries to dominate the market, saw revenues plunge dramatically during the recession and its industry has been hit by multiple problems this year, from earthquakes and tsunamis to sluggish economic growth. Japan's machinery sector is not expected to recover back to 2008 revenue levels before 2015.
Are you investing significantly in new industrial machinery and automation to support your plant renewal or expansion plans? Where in the world do you expect to invest most strongly?
Written by Paul Tate
Paul Tate is Research Director and Executive Editor with Frost & Sullivan's Manufacturing Leadership Council. He also directs the Manufacturing Leadership Council's Board of Governors, the Council's annual Critical Issues Agenda, and the Manufacturing Leadership Research Panel. Follow us on Twitter: @MfgExecutive