Automation: UK manufacturing lags dangerously behind competition

21,700 industrial robots operate in factories across the UK, according to the latest report from the International Federation of Robotics (IFR).

This latest figure is a 5% increase annually. Sales of new robots were slow with 2,000 units shipped in 2019, 16% less compared to 2018.

“The UK has a surprisingly low robot stock for a Western European country in the manufacturing industry,” commented Milton Guerry, president of the International Federation of Robotics. “Though the UK’s operational stock hits a new record, other European countries like France, Italy and Germany have between two times and even 10 times the stock in operation. The automotive and the general industry need to invest in automation technology to keep up with international competition.”

The automotive industry is by far the largest user of industrial robots in the UK. At the end of 2019, this industry accounted for 52% of the total operational stock of robots (11,000 units). With 13% of the operational stock, the plastics and chemical industry was the second largest user of industrial robots (2,710 units).

Even without the coronavirus, investments in the UK were already dampened because of the currently unclear Brexit situation. If no trade agreement is found until December 31st, 2020, the UK will be treated like a third-party country of the EU. This uncertainty inhibits the necessary modernisation of manufacturing production facilities. It will also determine the speed of economic recovery after the pandemic.

Brexit might, however, drive robot installations in the UK because new government policy may restrict immigration.

Short-run figures will be impacted by the COVID-19 situation, which will likely see rising unemployment. When the economy recovers and labour becomes a scarce resource again, the demand for robots might start to rise.

Global outlook

The new World Robotics 2020 Industrial Robots report shows sales of new robots remain on a high level with 373,000 units shipped globally in 2019. This is 12% less compared to 2018, but still the third highest sales volume ever recorded.

“The stock of industrial robots operating in factories around the world today marks the highest level in history,” said Milton Guerry, President of the International Federation of Robotics. “Driven by the success story of smart production and automation this is a worldwide increase of about 85% within five years (2014-2019). The recent slowdown in sales by 12% reflects the difficult times the two main customer industries, automotive and electrical/electronics, have experienced.”

“In addition to that, the consequences from the coronavirus pandemic for the global economy cannot be fully assessed yet,” continued Mr Guerry. “The remaining months of 2020 will be shaped by adaption to the 'new normal'. Robot suppliers adjust to the demand for new applications and developing solutions. A major stimulus from large-scale orders is unlikely this year. China might be an exception, because the coronavirus was first identified in the Chinese city of Wuhan in December 2019 and the country already started its recovery in the second quarter. Other economies report to be at the turning point right now. But it will take a few months until this translates into automation projects and robot demand. 2021 will see recovery, but it may take until 2022 or 2023 to reach the pre-crisis level.”

Asia remains the strongest market for industrial robots – operational stock for the region's largest adopter China rose by 21% and reached about 783,000 units in 2019. Japan ranks second with about 355,000 units – plus 12 %. A runner-up is India with a new record of about 26,300 units – plus 15%. Within five years, India has doubled the number of industrial robots operating in the country's factories.

The share of newly installed robots in Asia was about two thirds of global supply. Sales of almost 140,500 new robots in China is below the record years of 2018 and 2017 but still more than double the numbers sold five years ago (2014: 57,000 units). Installations of top Asian markets slowed down – in China (minus 9%) and Japan (minus 10%).

In China, the broad majority of 71% of new robots was shipped in from foreign suppliers. Chinese manufacturers still mainly cater to the domestic market, where they gain increasing market shares. Foreign suppliers deliver some 29% of their units to the automotive industry, while it is only around 12% for Chinese suppliers. Therefore, foreign suppliers are more affected by the decline of business in the Chinese automotive industry than the domestic suppliers.

Europe reached an operational stock of 580,000 units in 2019 – plus 7%. Germany remains the main user with an operational stock of about 221,500 units – this is about three times the stock of Italy (74,400 units), five times the stock of France (42,000 units) and about 10 times the stock of the UK (21,700 units).

Robot sales show a differentiated picture for the largest markets within the European Union: About 20,500 robots were installed in Germany. This is below the record year 2018 (minus 23%) but on the same level as 2014-2016. Sales in France (+15%), Italy (+13%) and the Netherlands (+8%) went up.

The USA is the largest industrial robot user in the Americas, reaching a new operational stock record of about 293.200 units – up 7%. Mexico comes second with 40,300 units, which is a plus of 11% followed by Canada with about 28,600 units – plus 2%.

New installations in the United States slowed down by 17% in 2019 compared to the record year of 2018. Although, with 33,300 shipped units, sales remain on a very high level representing the second strongest result of all time. Most of the robots in the USA are imported from Japan and Europe. Although, there are not many North American robot manufacturers, there are numerous important robot system integrators. Mexico ranks second in North America with almost 4,600 units – a slowdown of 20%. Sales in Canada are 1% up to a new record of about 3,600 shipped units.

IFR www.ifr.org