Surviving the Storm: The US Tariff Tussle and Its Impact on the German Robotics and Automation Sector
Robotics and Automation Through the Struggling Period - Robotics and automation technology amid economic hardship
The digital workshop of the old world is bracing for harsh winds. The German robotics and automation industry has a rather dim outlook for the current year, with a whopping 10% plunge in sales anticipated to bring the industry's total to a staggering 14.5 billion euros, as reported by the VDMA Robotics + Automation association.
"The growth for the next several months is foreseeably gloomy," says Dietmar Ley, chairman of the association. According to him, political uncertainties, particularly from the US tariffs, are the main culprits, causing customers to be unsettled and businesses to battle for competitiveness - especially when stacked up against their Asian counterparts.
Despite the uncertainty, Ley suggests that an unambiguous tariff system might help the industry regain its footing. Although more tariffs mean added costs, firms could potentially absorb them, fixing the issue as long as the tariff situation clarifies. If at last, there is a resolution, businesses might even gain from a rebound effect.
Assembly lines are currently the stumbling blocks, representing the largest sub-sector of the industry. Sales in this domain are projected to sink by 15% to a somber 7.7 billion euros this year, and Ley isn't overly optimistic about a reasonably quick rebound. This sector tends to exhibit sluggishness when responding to economic downturns. Hence, he doesn't foresee any growth next year.
However, the crystal ball looks brighter for the image processing sector. The industry expects a steadfast 3.1% growth this year, followed by a positive surge in the future. "Once global trade disputes are behind us, next year should see growth in the image processing sector," Ley predicts.
Robotics, the third sub-sector, doesn't fare much better. The association predicts a 5% slide in sales by 2025, without forecasting for the upcoming year.
The industry remains hopeful for a push from the automatica trade fair in Munich, scheduled to happen in about three weeks, and expected to attract roughly 40,000 trade visitors and 780 exhibitors.
- Robotics
- Automation
- Crisis Year
- Crisis
- Sales
- VDMA
- Asia
- Tariffs
- Image Processing
- Automatica
- The crisis year for the robotics and automation sector in Germany is anticipated to see a 10% decline in overall sales, with the image processing sector being an exception and projected to grow by 3.1% this year.
- The uncertainties caused by US tariffs, particularly in the Asian market, are causing challenges for businesses in the German robotics and automation industry, leading to a battle for competitiveness.
