Demand for Automation Hits the Brakes

Jun 15, 2009

Demand for automation equipment is in decline, according to a survey of industrial automation distributors and integrators by Eli Lustgarten, analyst at Longbow Research (www.longbowresearch.com). Among those surveyed, 48% now say the market is weaker than it was at this time last year, compared with 34% in December and 24% in October.

“Price increases have reportedly stopped almost entirely,” says Lustgarten, as a result of the trends. “Not only is this the first survey where we have seen price declines, but the number of respondents reporting price declines (11%) was higher than those reporting price increases (5%); the vast majority of respondents (84%) now categorize prices as flat, compared with 0% in our December and October surveys.”

Demand reports were predominantly flat or negative. Flat demand remains a relatively stable percentage of all reports, at 43%.

Demand growth was reported by 10% in March, vs. 20% in December and 33% in October.