Introduction
On Friday, one of the biggest banks in the U.S., Silicon Valley Bank, failed. This failure has permeated throughout the financial system and broader market as fear enters the picture.
In moments like this, you may be wondering how failure in the financial sector can impact our beloved food manufacturing automation industry.
Luckily, we have a good case study to look at: the 08′ crisis. We revisited what happened in our industry to get a feel for what might happen next at a macro level. Although we can’t predict what’s going to happen, it’s important to understand what history has to offer us in moments like this.
Revisiting the 08' Financial Crisis
As you know, the manufacturing automation sector faced challenges during the 2008 financial crisis due to reduced global demand for manufactured goods. However, the food manufacturing automation sector fared relatively well during this time. The stability of the food industry, along with the existing level of automation infrastructure in place, helped to mitigate the impact of the crisis on the sector.
Additionally, the crisis reinforced the need for continued investment in automation solutions to remain competitive. This investment paid off as it allowed companies to maximize efficiency and reduce costs. Furthermore, the crisis created new opportunities for innovation and growth in areas related to food safety and quality control.
According to a report by the International Federation of Robotics, global sales of industrial robots declined by 16% in 2009 due to the financial crisis. However, the food manufacturing automation sector experienced some growth during the crisis, particularly in areas such as food safety and quality control.
The Global Food Automation Market report by Mordor Intelligence predicts strong growth for the food automation market from 2020-2025 due to increased demand for food safety and quality control measures. The USDA’s Economic Research Service also found that overall food consumption remained relatively stable during the financial crisis, with some shifts in the types of food products consumed.
Investing in automation solutions can help your company weather economic storms and remain competitive in the long term. We hope this information is helpful and look forward to discussing how we can help your company optimize its manufacturing processes.
Key Takeaways
Investing in automation solutions can help your company weather economic storms and remain competitive in the long term. We hope this information is helpful and look forward to discussing how we can help your company optimize its manufacturing processes.
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