ZURICH: ABB is looking to tap into a skilled labor shortage in the fast-growing construction sector to help drive the post-pandemic recovery of its robotics business and diversification from the automotive industry, the head of the division said.
The Swiss engineering group’s robotics business has been hit by the downturn in recent years in the auto sector, traditionally its biggest customer, as carmakers suffered falling sales and it quit low-margin businesses.
Construction offers new opportunities, especially with massive infrastructure programs planned to revive the global economy after the coronavirus pandemic.
“The construction industry is facing the perfect storm,” said Sami Atiya, president of Robotics & Discrete Automation at ABB. “There is huge demand for affordable housing and more sustainable solutions, and a shortage of skilled labor.
“We have seen over the last 18 months a huge interest in automation from the construction industry.”
Some 81 percent of companies have said they will start using or increase their use of construction robots in the next 10 years, according to an ABB survey of 1,900 construction firms in Europe, China and the United States.
ABB is working on projects including using robots to install elevators for Switzerland’s Schindler and automating the production of components for prefabricated modular homes.
Its robots are also used at building sites to weld together steel reinforcement baskets to strengthen buildings. ABB competes with Japan’s FANUC and Germany’s Kuka in the global industrial robots market estimated to be worth $45 billion per year.
While ABB Robotics sales in the automotive market are estimated to grow by 3 percent to 5 percent in the coming years, Atiya said he expected them to grow by 20 percent-30 percent per year in the construction industry.
“Construction is where automotive was about 50 years ago in terms of the density of robots and automation,” he said. “It’s coming from a lower base, but it is going to grow much faster.”
Systems — which include robots, peripherals and software — can cost from $100,000 to $1 million. Selling these to construction customers can lead to higher profits for ABB Robotics, Atiya said.
He declined to give a figure for profitability in construction robots, but said margins were “well within” his division’s target range for operational EBITA of 15 percent, up from 11.9 percent in 2019.
“I am absolutely confident that we will perform better than the market. Double-digit sales growth over the next three years is what we are aiming for, and we have had a very good start in 2021.”
He expected a recovery in the Americas and Europe, after orders fell in the first quarter, and the “fantastic growth” in China to continue.
Robot builders to plug construction skills shortage for ABB
https://arab.news/wm2n9
Robot builders to plug construction skills shortage for ABB
- ABB is working on projects including using robots to install elevators for Switzerland’s Schindler
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
