n NEWS March 2025 www.drivesncontrols.com 10 VDMA ROBOTICS + AUTOMATION (VDMA R+A), the German-based organisation that represents 415 automation companies across Europe, is calling for action to halt the sector’s loss of global competitiveness. “Europe's industries are falling behind in international competitiveness and urgently need to catch up,” warns the organisation’s chairman, Dr Dietmar Ley. “China, for example, has shifted its focus to advanced technology and high-value manufacturing. The country’s drive for automation has seen its robot density double in four years to 470 robots per 10,000 workers. “This is twice the European Union gure of just 219,” he points out. “Robotics and automation is the key enabling technology for the future growth of economies, increasing productivity, driving innovation and creating new opportunities.” VDMA has issued a 40-page action plan aimed at European policymakers, including governments and EU institutions. Its key demands are to: n Give Europe’s robotics sector a boost Europe is increasingly being challenged by aggressive industrial policies in other countries – such as the America First agenda and China’s Five-Year-Plan for Robotics. Boosting robotics will help Europe to become more competitive, safeguard its sovereignty, counteract demographic decline, and manage the transition to carbon neutrality. n More venture capital for European start-ups The regulatory framework for institutional investors needs to be updated to mobilise urgently needed venture capital for the robotics and automation sector. France’s Tibi Initiative has shown how capital can be put to work for innovation – the rest of Europe should follow, says VDMA. n Set up a competition roadmap Europe’s progress in robotics and AI needs to be benchmarked against developments in Asia and North America, and concrete national and European technology roadmaps created. n Focus on economies of scale Europe’s policymakers need to provide an environment that is conducive not only to innovation, but also to transferring innovation into mass production and wide adoption. VDMA says that Europe boasts a “fascinating” research and innovation landscape and great ideas are constantly being born. However, it adds, success must ultimately be measured by bringing ideas to market at scale. “We have no time to waste,” says Ley. “Our new strategy paper is a call to policymakers across Europe to set the course on how to use robotics and automation to make Europe more competitive and resilient. Let us get to work now.” VDMA R+A represents suppliers of components and systems in robotics, automated systems and machine vision. It is part of the wider VDMA organisation which represents 3,600 German and European mechanical and plant engineering companies employing around three million people in the EU-27, more than 1.2 million of them in Germany. This sector is the largest employer in the capital goods sector in both the EU-27 and Germany. In the EU, it represents a combined turnover of around €910bn. www.vdma.org/robotics-automation Europe’s automation sector ‘risks losing its global competitiveness’ REVENUES FROM GERMANY’S robotics and automation sector will plummet by 9% this year to €13.8bn, according to the trade body that represents the sector, VDMA Robotics + Automation. This predicted fall is even worse than the 6% drop last year to €15.2bn. VDMA believes that the sector has “lost competitiveness”. “The sales trend in the robotics and automation industry calls for action,” says Dr Dietmar Ley, the body’s chairman. “The current downward trend is not based solely on cyclical fluctuations in demand, but has very tangible structural causes. These include, for example, the excessive dependence of the robotics and automation industry on the German automotive industry. In addition, there are weaknesses in competitiveness that business and politics must address with consistent reforms.” The German home market has been particularly hard-hit by the downturn, with orders falling by 16% during 2024, compared to 2023. Orders from abroad dropped by 2%, and the only bright spot for the German robotics and automation sector was exports to the Eurozone, where orders soared by 44%. Foreign demand excluding the Eurozone countries was 13% down on 2023. “Companies in the German robotics and automation industry need to focus on their own competitiveness,” says Ley. “The priority is to accelerate innovation. More agility is also needed to respond more quickly to customer demands and to set ourselves apart from competitors abroad. Finally, we also need to bring costs down to a competitive level.” Dr Ley is also calling for politicians to introduce reforms. “With a view to fierce global competition, Germany can no longer afford disadvantages such as disproportionate regulation and excessive costs,” he says. “The economy needs reliable framework conditions in Germany that support, not hamper, growth. Only then can robotics and automation thrive again. “All long-term growth trends for our innovative industry remain intact,” Ley states. “We now have to set the right course.” The robot population density in most European countries lags far behind the figure for China (2023 figures). Source: IFR German automation sales ‘will fall by 9% in 2025’, following a 6% drop in 2024
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