The 1Q 2025 Results from Rockwell Automation Show Notable Success in Latin America, and Other Technology Vendors Should Make Sure to Take Note

Rockwell Automation released its 1Q results for 2025 on February 10, painting a relatively mixed picture of one of the United States’ largest industrial automation providers. Rockwell Automation noted “better-than-expected order performance,” up around 10% Year-over-Year (YoY); however, the company’s Intelligent Devices and Software & Control business segments both saw lower sales volumes YoY in 1Q 2025, decreasing 12% and 13%, respectively. The Rockwell Automation Lifecycle Services business segment develops and guides customers through digital transformation projects, saw positive YoY sales volumes of 5%.

When looking at industry segment performance, the only positive organic growth occurred in the company’s e-Commerce & Warehouse Automation business, which was up 30%, indicating strong success for Rockwell Automation following its acquisition of OTTO Motors, a supplier of Autonomous Mobile Robots (AMRs) and fleet management software for industrial applications, in October 2023. Notable struggling industries for Rockwell Automation business YoY were the chemical and tire manufacturing markets, both down double-digit percentages. These industries are of significance to Rockwell Automation, representing around 10% of total revenue for the company. This fall in organic sales is not necessarily a reflection of strong competition displacing Rockwell Automation or a failure by the company to drive new business, but more likely from structural weaknesses in the U.S. chemical and tire manufacturing industries, which are the most dominant regional markets for Rockwell Automation. Both industrial markets in the country have faced stiff competition from foreign competitors, particularly China, alongside labor pressures and high energy costs.

YoY organic sales growth in 1Q 2025 for Rockwell Automation was negative for North America (-8%), Europe, the Middle East, and Africa (EMEA) (-14%), and Asia-Pacific (-9%), with Latin America being the sole point of strong success, increasing by 15%. Other manufacturing technology vendors should take note of the growth of Rockwell Automation in the Latin American market. While the Latin American region as a whole still represents the lowest portion of global sales for Rockwell Automation at 8%, its growth is noted, likely driven by a takeoff in Latin American manufacturing. The countries at the center of this manufacturing growth spurt are Mexico and Brazil, with both driving additional production, serving as both nearshoring bases for U.S. markets and domestic powerhouses for the region.

Strong manufacturing verticals that technology vendors should take note of in Mexico are plastic & rubber, metal products, and transportation equipment, with revenue Compound Annual Growth Rates (CAGRs) increasing between 2021 and 2023 by 18.2%, 17.7%, and 16.6%, respectively. For Brazil, coke, petroleum, and biofuels manufacturing, automotive, and machinery show the greatest YoY growth between 2021 and 2022, with revenue increasing 43%, 37%, and 31%, respectively.

Manufacturing technology providers need to address the following regional challenges with their solutions to see strong adoption in the Latin American market:

• Skilled Labor Shortages: Many manufacturing operations in the region face struggles in developing and attracting skilled workers. Manufacturing Execution System (MES) solutions can thrive in such settings, effectively guiding workers through production processes, alongside managing and optimizing shop floor operations. Providers need to ensure that their messaging is structured around having a robust and supportive onboarding process, alongside having easy-to-use solutions with simple and intuitive user interfaces.
• High Energy Costs: Latin America faces volatile and often high energy costs, creating uncertainty and instability around manufacturers’ bottom lines. It is a ripe market for energy management software solutions, enabling manufacturers to optimize energy usage and reduce costs.
• Effective Engagement with Industry 4.0 Technology: Many manufacturers in the region simply do not see the value in digital transformation initiatives for operations, with questions over Return on Investment (ROI) and complexity of deployments being beyond local teams. Technology vendors need to help manufacturers understand the long-term value of Industry 4.0 solutions, not just addressing the upfront stick cost and short-term ROIs, but highlighting the essential need for manufacturing operations to evolve to maintain competitiveness in the next 5 to 10 years.

The Latin American market could likely face challenges going forward as it looks to grow its global manufacturing presence, especially as the nearshoring options for the U.S. market are in a more dubious position given the Trump administration’s rhetoric and actions around product tariffs; however, the region has definitely been more heavily discounted in recent years in favor of Asia-Pacific opportunities than it should have been. Technology vendors that act fast and look to position themselves as having a deep understanding of regional-specific manufacturing challenges, and effectively mapping their solution portfolios to these problems, have the opportunity to see strong increased growth in the region and build a “household name” brand position. Rockwell Automation should be doubling down on the success it is seeing, and competitors should be evaluating their current positions in the region to see if they could be doing more.