The U.S. policy push to repatriate manufacturing is creating a significant opportunity in the industrial automation sector. However, a persistent labor shortage poses a major challenge to this initiative. This article explores how this dynamic is shaping the market for industrial robots and which companies are best positioned to benefit.
The Reshoring Imperative Meets a Labor Crisis
The U.S. government’s goal to strengthen domestic manufacturing faces a critical hurdle: there are not enough workers to fill available jobs. As of February 2025, the U.S. had approximately 7.568 million job openings, outstripping the number of unemployed persons (around 7.1 million).
Key factors exacerbating the labor gap:
- Structural Labor Supply Shortages:A mismatch between worker skills and industry needs.
- Stricter Immigration Policies:Reduced access to foreign labor, further tightening the market.
This environment makes it essential for companies investing in the U.S. to have robust and efficient employment plans. Consequently, the focus is shifting towards high-end manufacturing—such as the entire semiconductor chip supply chain—where automation is not just an advantage, but a necessity for precise and efficient operations.
The U.S. Robot Market: Room for Growth
The United States presents substantial untapped potential for industrial robot adoption. While a major market, its robot density lags behind other leading economies, indicating significant room for expansion.
Global Robot Installation Snapshot (2023):
- Global Top 5 Markets:China, Japan, USA, South Korea, Germany (78% of total installations).
- China:The world’s largest market since 2013, accounting for51%of global installations.
- USA:Ranked 3rd, with ~38,000 units installed (a7%share of the global market).
Robot Density in Manufacturing (2023):
- Global Average:162 robots per 10,000 employees.
- Asia:182 robots per 10,000 employees.
- Europe:142 robots per 10,000 employees.
- Americas:127 robots per 10,000 employees.
The lower density in the U.S. and the Americas highlights a clear growth trajectory, especially as reshoring pressures mount.
Market Dynamics: Slowing Demand vs. U.S. Resilience
Despite the long-term opportunity, the global industrial robot market faced headwinds in 2024. Intense competition and falling demand in key regions squeezed profits for major players, though the U.S. market showed signs of resilience.
Performance of Key Market Leaders:
- ABB:While its electrical business drove overall revenue, the Robotics & Discrete Automation segment saw profit margins decline by 590 basis points in Q4 2024 due to order adjustments in machine automation.
- FANUC:Demonstrated strength in its robotics division, with Q4 orders surging62.1%in Asia (ex-China) and42.5%in the United States. This growth contrasted with sharp declines in China (-9.5%) and Europe (-24%).
- Yaskawa Electric:Its robot segment revenue saw a slight increase, driven by strong performance in semiconductor handling robots. However, regional revenue fell in Europe (-19%) and China (-9.5%).
Strategic Positioning: Which Companies Are Best Placed to Benefit?
The ability to meet rising U.S. demand is heavily influenced by a company’s local production capacity. Localized manufacturing ensures supply chain stability and faster response times.
- ABB:Has invested $14 billion in the U.S. since 2010. Its primary North American robot production base in Auburn Hills, Michigan, has been manufacturing robots since 2015.
- FANUC:Stands out with over half of its global robot production capacity located in Rochester Hills, Michigan. This significant local footprint provides a strong advantage in meeting U.S. demand efficiently.
- Yaskawa Electric:Currently has limited U.S. production but has announced a planned $200 million investment in an Ohio facility to produce industrial robots for the local market.
Conclusion: A 5-10 Year Outlook for U.S. Robot Demand
We anticipate that the demand for industrial robots in the United States will be gradually released over the next 5 to 10 years, driven by the convergence of reshoring policies and structural labor shortages. Companies with established, high-capacity manufacturing footprints within the U.S.—like FANUC and ABB—are strategically positioned to capture this emerging growth and will be the primary beneficiaries of this long-term trend.
