App. B—Commissioned Background Papers
Mitchell Hutchins Inc.
AN ANALYSIS OF ROBOT MANUFACTURING
Multisector Industry To Evolve in the 1980s
In 1980, sales of robots by U.S.
sharply from the
estimated $60-65 million sionary environment, the
in sales in 1979. robot industry size
While a growth of 50% is impressive during a was still less than 2% of the $4.69 billion
tool industry with which it often was mistakenly included and an insignificant part
1%) of U.S. GNP.
While robots are commonly assumed to be an extension of the machine tool in-
dustry because of its strong ties with manufacturing, we believe into its own subset of the flexible automation equipment sector
the industry will evolve a multitude of segments
much akin to the early development of the minicomputer industry in the 1960s However, in contrast to the minicomputer industry, it is conceivable for the
and early 1970s. major participants
in robotics to significantly change character a significant portion of robot manufacturers
the next decade.
believe it is likely for companies organized to ,
supply systems and subsystems for the factory of the future.
A pure robot
It is our opinion that the structure of the robotic sector to the early stage development of the minicomputer industry.
will evolve in a manner Through the mid-1960s,
similar the mini-
computer industry half of the 1960s
dominated by two major computer manufacturers. Beginning in the second into the 1970s, this sector developed a more elaborate structure.
Structure of the Minicomputer Industry in 1970
Peripheral Equipment Manufacturers
The interfaces depicted by this
structure can essentially be split into four subsegments:
The end users who could. .
sometimes go to a group Of independent consultants who help the purchaser put together systems and subsystems, or. . .
sometimes turn to a company that has developed a turnkey product using OEM supplier equipment as the heart of the system.