Tave speak:
- President Donald Trump's collective bargaining measurements could slow down the capital investments in warehouse automation, which, according to the market research company Interact Analysis, is due to increasing economic uncertainty.
- The tariffs already cause a headache for some warehouse automation providers, said Rueben Screven, a research manager at the UK-based Interact Analysis, in a recent blog post.
- “Our discussions with automation providers state that their customers are increasingly concerned, which leads to delays in important automation projects,” said Scriver. “Many decision -makers hesitate to approve large investments (Capex) because they fear that future political changes could undermine their investments.”
Diver Insight:
Trump's tariffs in the past few weeks and months have taken advantage of the global economic fears and created uncertainties for company leaders.
According to a survey that was published in March by Duke University and Federal Reserve banks from Richmond and Atlanta, for example, every fourth chief of finance could have a negative impact on their hiring and capital expenditure plans this year.
According to analysts, the unspoken type of tariffs only worsened the situation.
The administration introduced new taxes for imported goods on April 2, but has declined some of them since then. The USA Has started negotiations with several nations, which according to the White House had received a 90-day postponement of high mutual tariffs on April 9. Basic tariffs of 10% for most US trading partners exist, as are 145% of imports from China.
In a speech on Monday, the chairman of the Federal Reserve Jerome Powell stated that the recent shifts in federal politics in consumers and companies triggered confidence in inflation and the triggered volatility of the financial market.
“Indeed, we are currently experiencing the greatest uncertainty in terms of economic policy since the peak of pandemic”, ” Scrub said in his blog post.
The warning from the Interact analysis takes place because the warehouse automation market has already fought in recent years to recover from a sales shot.
The warehouse automation of the warehouse decreased by 3% in 2024, since global macroeconomic challenges and geopolitical tensions predicted the interact analysis at the beginning of this year, and at the same time predicted a slow recovery phase in 2025.
While the Interact analysis had already adopted a time of “acclimatization” for Trump's policy, the effects of him According to Scriver's blog post, tariffs can justify a further downgrading of the forecasts 2025 and 2026 of the research company.
The current uncertainty with tariff brakes is expected to extend sales cycles for warehouse automation technologies, especially for high-price values, end-to-end systems that require long-term planning, he said.
According to the analysis, the effects are further exacerbated by the “already high interest rate environment, which has dampened investment activity in the past three years in the past three years.