proprietary system integrator survey reflects an upbeat outlook, supported by optimism that capex growth will continue, with responses holding at a high level.

This survey again pointed to continued optimism on the forward outlook, well above historical average, stable with March. Most integrators (88%) anticipate an increase in demand over the next 12 months, a meaningful step up from 2019/2020 survey of 64%/67% and in line with the 89% in March. Similarly, orders activity still remains above the historical average with 58% seeing strength vs 6 months ago, above 2019/2020 levels of 41%/36%, a tick below the March survey of 63%. Capex growth is expected to accelerate into 2022 as systems integrators see 2021 up 4.5% on average while they see 2022 up 5.6%. Backlog commentary continues to be strong in a tight supply chain environment, not unusual, with 50% of respondents seeing stronger than normal backlog vs ~40% in March and ~22% last year. On end markets, positive commentary is still skewed toward hybrid markets like Food & Beverage, which has been consistent for the past four years, and Life Sciences is viewed positively for the third survey in a row. When asked on supply chain specifically, and its impact on ability to secure materials, 57% of respondents cited a material impact while only 6% were not impacted. Turning to software, tech adoption appears to be accelerating but is seemingly shifting toward IT consultants versus automation equipment suppliers.