Automation suppliers saw their revenues drop by more than 3% during the second quarter of 2015 (2Q15) due to falling oil prices and a strong dollar, according to a new study by ARC Advisory Group. Based on a corresponding drop in orders, many suppliers have trimmed expectations for business in future quarters. However, within this overall data, discrete automation suppliers continued to benefit from stronger investment activity in the electronics and automotive industries in Asia and North America, while Japanese suppliers continued to gain disproportionate benefit from a weaker yen.
Compared to 2014's second quarter, the total combined revenues of automation suppliers in the process and discrete manufacturing industries dropped by 3.1%. Suppliers to the discrete industries saw a 1.2% percent increase in revenues, while process industry suppliers saw their revenues fall by 5.7%, reflecting the slowdown in activity in the oil and gas sector. Among suppliers that report orders received, many saw large declines in activity during the 2Q15. On average, those orders decreased by nearly 7%.
