Companies in North America are reducing their orders for robots as a slowing economy and rising interest rates dampen the demand. The Association for Advancing Automation (A3) reported a 37% decline in robot orders in the second quarter of the year compared to the previous year. This decline follows a drop in orders in last year’s first and fourth quarters. While the pandemic initially drove a surge in robot sales, other factors, such as concerns about inflation and the economy, have led companies to hold off on purchasing robots.
Some industries, like e-commerce, overinvested in robots during the pandemic boom, leading to decreased demand. The softness in robot orders will continue until the fourth quarter or early next year. However, robots are still being adopted in various sectors, including construction, hospitals, and food-processing plants. The tight labor market was a key driver for robot sales, but as worker shortages ease, the demand for robots has declined. Companies like Swinerton are leasing robots instead of buying them to mitigate costs. Overall, the decline in robot orders reflects the broader economic challenges faced by North American companies.