ABB invests in US robot factory amid reshoring trend

The Swiss engineering firm, which competes against Germany’s Kuka and Japan’s FANUC, is investing $20 million to expand capacity at its Auburn Hills facility in Michigan in order to meet demand sparked by the Biden administration’s sizable industrial stimulus package.

According to estimates from ABB and the International Federation of Robotics, the United States holds the third-largest share of the world’s $50 billion robotics market (IFR).

As American businesses relocate production domestically to circumvent logistical bottlenecks that have hampered supply chains since the global pandemic, rapid growth is anticipated.

“After the most intense shocks to the industry, including COVID, the semi conductor shortage, and then the Ukraine war, businesses all want to become more resilient,” said Sami Atiya, the head of ABB’s Robotics and Discrete Automation division.

“In terms of critical parts of long supply chains, the more production you can bring closer to your home, the more resilient you become,” he told Reuters in an interview.