As expected, the VDMA Electrical Automation Association's sales forecast for 2020 is negative: the coronavirus pandemic depressed the industry's order intake by 8% in the first nine months of the year, while sales fell by 10% compared to the same period last year. The decline extends across all sectors: sensor technology recorded a drop in incoming orders of -4% and -5% in sales, control technology recorded -11% in incoming orders and -13% in sales and the other products sector reported -15% in incoming orders and -17% in sales.

Incoming orders for electrical automation

© VDMA

By region, Germany and Europe recorded the biggest slump in demand at -15% and -13% respectively. Demand outside Europe remains stable. The first positive impetus is coming from China, where VDMA members are reporting an increase in incoming orders.

Recovery dependent on general conditions

However, the trade association expects the situation to recover next year: sales are expected to grow by 2% in 2021 compared to 2020. Of course, this is subject to the current situation and its developments, including the change in the White House, the coronavirus pandemic and Brexit.

Order intake and sales Electrical Automation

© VDMA

The impact of Brexit on automation technology is comparable to other sectors of the manufacturing industry due to the close links between the value chains. The UK is the sixth largest export market for German mechanical engineering. The loss of benefits from the EU free trade agreements as a result of a no-deal Brexit and the associated technical barriers to trade due to different regulations would therefore also affect automation technology as a supplier industry for mechanical engineering with declining machine exports. Ultimately, the effects will depend on the UK's economic development.

Wireless Communications for Machines" working group

Another announcement was made at the press conference: On March 1, 2021, the VDMA will establish the "Wireless Communications for Machines" working group. The VDMA's 5G User Group will also become part of the working group. The WCM working group expands the VDMA network to include relevant players from the communications industry. In addition to the approximately 100 VDMA members, over 30 non-members will also be involved, including network equipment suppliers, network providers, chip manufacturers, research institutes, various research institutions, associations, consortia and ministries and authorities. The broad spectrum of members is intended to promote the use of modern wireless technologies in mechanical and plant engineering. This will create an application-oriented experience platform for the integration of wireless communication technologies in machines, plants and production systems.

The aim of the new working group is to open up new business models and value creation opportunities through innovative applications and thus set the course for future competitiveness in automation technology and mechanical and plant engineering, according to the VDMA industry association.

New industry leader VDMA Electrical Automation

On November 25, the VDMA Electrical Automation Association will publish the 12th edition of its industry guide "Automation on Request". The publication is intended to help mechanical and plant engineering companies find the right partner for their automation tasks among the members organized in the VDMA. "With our industry guide, we provide an overview of the automation technology product groups and mechanical engineering sectors in which our members specialize. Finding the right partner in the search for automation solutions is an important factor in maintaining competitiveness in the face of rapidly changing global markets," explains Florian Löber, VDMA Electrical Automation Officer.

Presentation of new VDMA guideline "Retrofit for Industry 4.0"

In cooperation with the VDMA Industry 4.0 Forum, VDMA Business Advisory and Fraunhofer IOSB-INA, the VDMA Electrical Automation Association, together with a project advisory board of almost 30 member companies, published the "Retrofit for Industry 4.0" guide in November 2020. The aim of the guide is to provide potential users and providers of Industry 4.0 retrofit solutions with a systematic introduction to the topic.