Will this be the year industrial automation takes off?

In an exclusive interview with Supply Chain Management Review – a sister publication – a senior researcher for IHS Markit observes that 2016 was a disappointing year for automation sales, but that trend may be reversed this year.

According to Mark Watson, senior research manager – manufacturing technology for IHS Market – there were declining revenues for many equipment suppliers and investment uncertainties in numerous end markets, vendors in industrial automation in 2016.

In a new white paper from IHS Markit, manufacturing technology analysts were asked to provide their informed predictions for the global manufacturing technology market in 2017.

“We did not come across any startling surprises,” says Watson, “but there were some additional interesting points to note.”

Watson adds that although there are lots of applications being talked about, the pace of change is relatively slow.

“Automation vendors are using IIoT/smart manufacturing in their own plants to demonstrate capabilities,” he says. “But OEMs have largely yet to catch on.”

Watson also says that IT vendors may “get frustrated” at the measured approach to disruption.

“This isn’t an industry that changes fast – and the opportunities will take longer to realize,” he says. “Overall, there’s a lot going on with IIoT/smart manufacturing, but things move slowly, especially given the challenging macro environment.”

Among the top seven  manufacturing Technology Predictions for 2017, IHS Markit analysts say that global market will grow…despite “headwinds.”

The industrial automation equipment market, for example is expected to grow in 2017, reversing two consecutive years of contraction. Analysts not that while growth prospects vary by sector, 2017 growth—projected at 1.5 percent—will take place despite this resistance, mainly in the form of low oil prices as well as a reduction in the sales of heavy machinery.

A new study done by the consultancy, AlixPartners, came to many of the same conclusions.

Look for subsequent stories and columns in https://www.linkedin.com/in/mark-watson-47a8728/ and SCMR for more forecast details.