Incoming orders in the electrical automation sector fell by 27% in real terms in the first nine months of 2023, the VDMA Electrical Automation Association reported at its press conference at SPS. However, turnover rose by 1% in real terms. This is due to the processing of existing orders and full customer inventories, which are now being reduced. Incoming orders will only increase again once the end customer's stocks are empty.

All sub-segments of the Electrical Automation division recorded declines in incoming orders compared to the same period last year: In the 'Sensors' area, orders fell by 20% and sales by 3%; 'Control Technology' recorded a decline of 36% in incoming orders with simultaneous sales growth of 5%. The 'Other products' area recorded a 35% drop in demand and a 6% increase in sales. In all three areas, demand from abroad exceeded domestic demand. Due to the remaining order backlog, Electrical Automation is still forecasting a slight increase in sales of 1% in real terms for 2023. The prerequisite for this is that the geopolitical crises do not escalate further.

"The industry expects the order situation to remain tense at the start of 2024 and sales to stagnate as a result. A recovery is expected in the second half of the year," predicts Jörg Freitag, Chairman of the Executive Board of VDMA Electrical Automation.

Bottlenecks in semiconductors - new study

There are still bottlenecks in the supply of semiconductors in Europe. The VDMA examined the situation in a study: 'The chip shortage - challenges and opportunities for mechanical and plant engineering in Europe' shows the urgency of a secure supply and ways to solve the bottlenecks in semiconductors. As part of this, a member survey was carried out in the electrical automation, drive technology, fluid technology and machine vision specialist associations, in which the semiconductor requirements in the electronics manufacturing industries were determined. According to the survey, demand for semiconductors is expected to double across all semiconductor components between 2023 and 2030. It also states that industrial semiconductor demand will predominantly be in the larger structures (180 - 350 nm). Against the backdrop of current developments on the semiconductor market, including the subsidized development of a European semiconductor industry, Electrical Automation fears a structural shortage of semiconductor components required by industry in the long term. "We are delighted that the member survey has produced such clear results and has very clearly demonstrated the equipment industry's need for semiconductors of large structural sizes," says Dr. Thomas Bürger, Deputy Chairman of the Executive Board of VDMA Electrical Automation. "We are thus addressing our needs vis-à-vis the semiconductor industry and politicians."

Manufacturing-X is being realigned

Manufacturing-X is a joint initiative of business, politics and science that has set itself the goal of establishing a data space for Industry 4.0. This should enable a scalable data economy without central platform structures. To this end, the BMWK published a funding program with a volume of 152 million euros in August 2023, which was developed under the technical guidance and support of the VDMA as part of the Industry 4.0 platform. As part of this, the VDMA Industry 4.0 Forum will be realigned and staffed in 2024 to pool expertise in Manufacturing-X. The VDMA has set up the Manufacturing-X topic page to summarize the individual activities and service modules on a cross-industry association landing page.

All relevant information and events on the topic of Manufacturing-X can be found here, including the 'Construction planning study: Manufacturing-X data room' published in August, which was created by the VDMA, ZVEI and Fraunhofer-Gesellschaft. The Electrical Automation Association is committed to the topic of Manufacturing-X, as an industrial data economy begins where production data is generated. Namely in the technologies and components of electrical automation, which then go hand in hand with the IT world as part of a data ecosystem.

News from the 'Wireless Communications for Machines' working group

With 107 members, the Wireless Communications for Machines working group (AG WCM) has established itself in the two and a half years since it was founded. Next year, the AG WCM will be organizing a 'Wireless Roadshow'. With informative keynotes, interactive workshops, live demonstrations and exclusive factory and lab tours, answers will be provided to important questions from the industry, with a clear focus on practical applications.

The AG WCM has started a cooperation with the Food and Packaging Machinery Association. In this regard, a first workshop will be held at the beginning of 2024 together with the food and packaging machinery industry. The topics addressed will include retrofitting, scalability, energy efficiency and process monitoring, which are relevant for companies in the future.

Electrical automation affected by impending PFAS ban

The EU Commission is planning a blanket ban on the PFAS substance group (perfluorinated and polyfluorinated alkyl compounds) as part of the REACH regulation. A blanket ban on PFAS would have devastating consequences for companies in the electrical automation sector, as they are required in many electrical automation components and are difficult to substitute. The Electrical Automation Association has participated in the PFAS consultation with the responsible European authority ECHA with an industry statement.

The association is calling for an exemption for electronic and automation components used in machines and systems. Substitutes do not currently have the required material properties, including temperature resistance, fire resistance and chemical resistance, and there is no open substance cycle in the environment. In addition, there is a demand for an exemption for long-chain fluoropolymers (polymers-of-lowconcern), which are considered harmless by researchers. If PFAS were to be banned completely, modern automation solutions would no longer be available in Europe, which would mean that modern and efficient machines could no longer be built downstream. This would jeopardize entire production processes in mechanical and plant engineering, which are essential for the energy transition, among other things. This would have a dramatic impact on European competitiveness and supply chain stability, including basic supply security for people.

The trade association supports the VDMA's overall initiative on PFAS due to the impact on electrical automation with links to mechanical and plant engineering.