A3 calls on incoming administration to support robotics, as Q3 stats show slowdown

Like other industries, robotics has faced uncertainty around the economy and U.S. elections. The number of robots ordered and their total value declined in the first nine months of 2024, according to the Association for Advancing Automation, or A3.

From January through September 2024, North American businesses ordered 23,034 robots valued at $1.4 billion, a 1.9% decline in units and a 2.2% drop in revenue in comparison with the same period in 2023. A3 reported declines in semiconductors, electronics, and photonics of -32% and automotive components of -21%. It will release the full report soon.

The Ann Arbor, Mich.-based organization attributed the slowdown to tight capital budgets, high interest rates, and slowed industrial output, particularly in electric vehicles. Also this week, the International Federation of Robotics (IFR) reported on global robot adoption, noting that the U.S. ranks 11th.

A3 finds signs for hope

However, there were some positive signs, noted A3. Orders increased in food and consumer goods (+60%), life sciences/pharmaceuticals/biomedical (+43%), and metals (+8%).

In the third quarter of this year, North American companies ordered ordered 7,329 robots valued at $475 million, reflecting a 14.1% increase in units and an 8.8% rise in revenue compared with Q3 2023. While non-automotive orders accounted for 4,113 units or 56%, automotive component orders increased by 61%, even as automotive OEM orders contracted by 15%.

“Industry feedback suggests cautious optimism, with many companies forecasting a stronger rebound in 2025,” the association stated.

Burnstein posts open letter, discusses outlook

Jeff Burnstein, president of A3, posted an open letter to President-elect Donald Trump, saying that automation is key to reshoring manufacturing to the U.S. He recommended that the federal government work with the robotics industry to develop a strategy to effectively compete economically and in national security.

How do the latest quarterly statistics support your points?

Burnstein: We’re still seeing declines in robot orders, but they’re shrinking.

People in industry said once the elections are over, we’ll have clarity — we’ll see. It depends on industrial policy changes, such as support for electric vehicles versus internal combustion engines.

Your letter mentions the need for a national robotics strategy, as do A3’s advocacy principles. How would that mesh with the incoming administration’s stated goals of streamlining government?

Burnstein: They can happen at the same time. If the priority of the next administration is to bring back manufacturing, automation is necessary, regardless of whether it shrinks the federal government.

The [White House] Office of Science and Technology Policy could put more emphasis on robotics and automation.

With Tesla‘s Optimus, Elon Musk is a notable proponent of humanoid robots, and he has been named co-leader of the new Department of Government Efficiency. Do you think he’ll be helpful to the industry?

Burnstein: I don’t know exactly what his role will be, but you’d think that with somebody who knows and has applied the technology, he’s understand the robotics industry quite well.

Policy recommendations include more federal attention

Do robotics R&D and workforce development require more federal funding and coordination?

Burnstein: We’re trying to point to general principles. There should be someone in the government — a “robotics czar” — focused on how robotics, AI, and automation can make America more competitive. It is a priority in other countries.

If the priority is to create more jobs, then these fit together. One way is to automate; the other is to train the workforce. We have to have more state programs and coordination at the national level.

What are A3’s stances on issues like deregulation, tariffs, and tax cuts, which are mentioned in A3’s principles? How might they help or hurt the U.S. robotics industry?

Burnstein: On tariffs, I can’t comment yet. We have an advocacy committee meeting, chaired by Brendan Schulman of Boston Dynamics, in January.

On taxes, there should be incentives for companies that automate and expense it upfront.

We see a real need for looking at how we speak about automation and robotics. The last National Robotics Initiative was during the Obama administration. We can debate about whether investments were too focused on basic research, but coupled with tax incentives, it was a start.

As regulations go, there are some that if changed, they could help companies adoption automation. We’d need to explore that more closely, but A3 has pointed out that robots are a job creator, not a destroyer.

Now that the elections are over, what’s the status of the Congressional Robotics Caucus? Do you know any incoming members of Congress?

Burnstein: U.S. Representative Jim McGovern of Massachusetts and Rep. Robert Latta of Ohio are the co-chairs. I’ve heard that McGovern was very strong about wanting the caucus to be more active.

I appeared before the Senate AI Caucus, and there’s a growing awareness that AI and robotics go together, so I’m hopeful.

Do you expect a response to your letter from the White House?

Burnstein: We got a response that they received it, and I’m hopeful for outreach to work with A3 and other organizations. The National Association of Manufacturers [NAM] sent letters before and after the election, and a lot of people signed them.

A3 to work with lobbyists, other organizations

Are A3’s principles in line with Henrik Christensen‘s National Robotics Roadmap? 

Burnstein: We are generally aligned, I participated in putting it together. I think there are other like-minded organizations, such as NAM. We want to focus on all industries that robots and automation can assist.

How can the robotics industry elevate its profile in Washington?

Burnstein: For the first time, we’ve hired a lobbying group, which will begin on Dec. 1. We think there’s a good opportunity, and both sides of the aisle are interested in the same things: bringing back jobs, keeping the U.S. competitive, and not falling behind in a whole bunch of areas, not just manufacturing.

Does A3 have plans to work with other organizations, such as the ARM Institute or robotics clusters, to advocate for the industry?

Burnstein: I haven’t seen much activity lately from the National Alliance of Robotics Clusters, but there will be coordination with similar groups.

As I said, our advocacy committee will meet right before the inauguration. At A3’s Business Forum in January, we may also talk with various groups.

Right now, we’re outlining general principles of working with the next administration on taxes, workforce development, and other issues.

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