Robot sales fall

According to the Robotic Industries Association (RIA), new orders for North American robotics companies fell by 38% in the first half of this year. The Association attributes much of the loss to a decline in robot sales to the automotive industry, in which new orders were down 52%. It's expected that the decline in orders may go on for quite some time as the automotive industry digests large purchases of robots over the past few years. In non-automotive robotic sales, the robotics industry experienced a 5% decline in sales. New non-automotive robot orders accounted for 45% of the industry's orders through mid-year. However, there was a 33% growth in new orders for assembly robots and for material removal robots. In all, some 6,607 robots valued at $473.5 million were ordered by North American companies during the first six months of 2006. Adding orders from companies outside of North America brings total orders to 7,141, with a value of $501.4 million. Overall the totals show a decline of 37% year-over-year with 26% less revenue. Donald A. Vincent, RIA's vice president, observes that, "The long term success of the robotics industry depends on growth in non-automotive markets, so we're encouraged by the relatively good results, especially when you consider that 2005 was the best year ever for North American robots." The association estimates there are 162,000 robots now installed in American factories, making the U.S. second in robot use only to Japan.