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ROBOTICS in an ECONOMIC DOWNTURN by Daniel Wilson

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ROBOTICS in an ECONOMIC DOWNTURN by Daniel Wilson ROBOTICS IN AN ECONOMIC DOWNTURN By Daniel Wilson Earley Patrick-Joseph Fitzgerald Guill ROBOTICS IN AN ECONOMIC DOWNTURN An Interactive Qualifying Project Submitted to the Faculty of WORCESTER POLYTECHNIC INSTITUTE in partial fulfilment of the requirements for the Degree of Bachelor of Science by Daniel Wilson Earley Patrick-Joseph Fitzgerald Guill Date: 28 May 2010 Report Submitted to: Professor Taskin Padir Professor Taskin Padir Worcester Polytechnic Institute This report represents work of WPI undergraduate students submitted to the faculty as evidence of a degree requirement. WPI routinely publishes these reports on its web site without editorial or peer review. For more information about the projects program at WPI, see http://www.wpi.edu/Academics/Projects. Abstract The robotics industry, as with many other business sectors, has been greatly affected by the current economic crisis. We examine the performance of the robotics industry by tracing its operation over the past decade, through the analysis of quarterly reports by trade groups, and incorporating the knowledge and experience of industry leaders. This project: 1) assesses the current health of the robotics industry, 2) predicts its outlook for the future, and 3) reports hiring trends for robotics- related companies. ii Table of Contents Abstract ........................................................................................................................................................ ii Table of Figures........................................................................................................................................... 4 Introduction ................................................................................................................................................. 5 How We Got Here: The Economy ............................................................................................................. 5 The Robotics Industries Association ......................................................................................................... 6 Industry Performance 1999 - 2009 ........................................................................................................... 7 1999 ...................................................................................................................................................... 7 2001 ...................................................................................................................................................... 8 2002 ...................................................................................................................................................... 9 2004 .................................................................................................................................................... 10 2005 .................................................................................................................................................... 15 2006 .................................................................................................................................................... 19 2007 .................................................................................................................................................... 22 2008 .................................................................................................................................................... 25 2009 .................................................................................................................................................... 30 Methodology .............................................................................................................................................. 33 Health of the Robotics Industry ............................................................................................................... 35 Present Condition of the Robotics Industry ............................................................................................ 35 Outlook Forecasting .................................................................................................................................. 40 Future of the Robotics Industry .............................................................................................................. 40 Employment ............................................................................................................................................ 41 Educating to Meet a Need ...................................................................................................................... 48 Results ........................................................................................................................................................ 48 Assessment ............................................................................................................................................. 48 Conclusion ................................................................................................................................................. 50 Works Cited ............................................................................................................................................... 51 Appendix A: List of North-American RIA Members ............................................................................ 55 Appendix B: Interview with Dan Kara - February 5th, 2010 ............................................................... 64 Appendix C: RIA Industry Sales Data .................................................................................................... 81 Appendix D: Robotic Firms Currently Hiring ....................................................................................... 82 3 Table of Figures Figure 1 - Year-End Sales Figures of New Robots from 1999 - 2002............................................................. 9 Figure 2 - Year-End Orders for New Robots from 1999 - 2002. .................................................................. 10 Figure 3 - Cumulative Orders for New Robots from North American Companies in 2004. ........................ 12 Figure 4 - Cumulative Sales of New Robots in 2004. .................................................................................. 14 Figure 5 - Cumulative Orders for New Robots from North American Companies in 2005. ........................ 16 Figure 6 - Cumulative Sales of New Robots in 2005. .................................................................................. 18 Figure 7 - Cumulative Orders for New Robots from North American Companies in 2006. ........................ 19 Figure 8 - Cumulative Sales of New Robots in 2009. .................................................................................. 20 Figure 9 - Cumulative Orders for New Robots from North American Companies in 2007. ........................ 22 Figure 10 - Cumulative Sales of New Robots in 2007. ................................................................................ 24 Figure 11 - Cumulative Orders for New Robots from North American Companies in 2008. ...................... 26 Figure 12 - Cumulative Sales of New Robots in 2008. ................................................................................ 29 Figure 13 - Cumulative Orders for New Robots from North American Companies in 2009. ...................... 31 Figure 14 - Cumulative Sales of New Robots in 2009. ................................................................................ 32 Figure 15 - Growth Estimates for FY2010 (Diagrams Courtesy of Robotic Trends) .................................... 35 Figure 16 - Areas of Demand (Diagram Courtesy of Robotic Trends) ......................................................... 42 Figure 17 - Demand by Position (Diagram Courtesy of Robotic Trends) .................................................... 43 Figure 18 - Valued Skills (Data Courtesy of Robotic Trends) ....................................................................... 44 Figure 19 - Hiring Trends (Diagrams Courtesy of Robotic Trends) ............................................................. 45 Figure 20 - Workforce Development (Diagrams Courtesy of Robotic Trends) .......................................... 46 Figure 21 - Total number of new robot orders in North America from 1999 to 2009. .............................. 81 Figure 22 - Total sales of new robots in North America from 1999 to 2009. ............................................. 81 4 Introduction The robotics industry dates its origin back to the 1960s when the first robots entered into manufacturing assembly lines. Despite being nearly 50 years old, robots still possess a vast quantity of untapped potential. Yet the robotics industry, within just five short decades, has created one of the greatest impacts upon the way humankind lives in modern history. Robots have become integral components in modern human life. Robotic devices have found usage as agricultural tools and medical services to provide methods that are more efficient while maintaining the expected degree of public health and safety. Likewise, robotic technology now helps to manage many of our public transportation systems and is becoming the foundation for future military platforms. With all the uses and technological advancements associated with robotics, what kind of impact have robots had on the economy? What are the effects of the robotics industry on the job market and how are people adapting
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