America’s factories are giving robots a little “me time” as manufacturers switch up their automation game. During the pandemic, US factories faced a dual crisis: a shortage of human workers and unpredictable supply chains. To tackle these issues quickly, many turned to robotics, boosting their automation efforts to keep things running smoothly. But as those challenges ease, demand for robots is cooling down.

• In 2023, North American factory robot orders fell by nearly a third compared to 2022’s record levels — with an 8% decline in robot sales in the first half of 2024.
• Orders in the semiconductor and electronics industries dropped 40%, while the automotive sector saw a 20% decline in Q2 2024 (WSJ).

Recalibrating expectations: A3’s Jeff Burnstein tells Business Wire, “Rising inflation and borrowing costs have dampened spending on robotics, with many companies opting to delay major investments.” However, not all industries are cutting back. In Q2 2024, food and consumer goods manufacturing defied the trend, with robot orders jumping 85.6%, while the life sciences industry saw a 47.9% rise. Reflecting on how businesses are adapting, John Newman from Athena Manufacturing adds, “The robots are still being used but just not as much as during COVID and after COVID.”