The Welding Workforce

With the growth of cobots and more user-friendly pre-engineered robotic cells, automation has reached a tipping point. To fully appreciate the far-reaching implications of technology “beyond the arc,” first consider the convergence of several factors taking place right now.

We have talked with a number of manufacturers who see a robust sales cycle continuing until Q2 2023, but uncertainty beyond that. Experts, such as JPMorgan Chase, predict a mild recession beginning in late 2023. The company sees “increased spending related to infrastructure and the CHIPS and Science Act offset by reduced pandemic-related outlays. We see business investment up 3% in 2023, with solid spending on equipment and technology partly offset by lower spending on buildings, plants and structures.”

Deloitte projections based on Oxford Economics’ Global Economic Model anticipate 2.5% growth in GDP in manufacturing in 2023. After 29 consecutive months of growth, the November Manufacturing Purchasing Managers Index registered 49% and dropped to 48.4 in December. This marks the first time the manufacturing sector contracted since May 2020. However, the labor market remains strong, with manufacturing employment increasing by 8,000 in December.

In typical times, these indicators might signal flat to slight down sales of welding equipment, but we live in anything but typical times. First, supply chain disruptions aren’t going anywhere. To buttress operations against the inevitable disruptions, there is more re-shoring of operations and sourcing of fabricated components closer to their point of use. This means that U.S. fabricators who can compete effectively have new opportunities for growth (as a side note, The Reshoring Initiative offers good guidance on how to make the business case for selling against overseas competitors).