Stocks to plug into the rise of automation

Companies that provide automation solutions to a wide range of industries are the biggest beneficiaries of this trend.

Vikram Barhat 10 October, 2018 | 5:00PM

There has been steadily growing media coverage and public discourse around the issue of automation and its implications for employment. According to the Organization for Economic Cooperation and Development, automation isn't restricted to manufacturing, but could eliminate 14% of jobs across 32 countries and could considerably alter another 32% jobs in the way they are performed.

Although time will tell if the fears over automation are justified, there's no denying the fact that it's an industry that is swiftly worming its way into every sector and every aspect of human life. For that reason, Market Research Future projects that the global industrial automation market will reach US$216.5 by 2023 from US$128.63 billion in 2017, swelling nearly 10% annually. It's little surprise that the U.S.-based ROBO Global Robotics & Automation Index, which comprises 84 companies across 12 subsectors in 14 countries, clocked a staggering 46% gain in 2017.

The biggest beneficiaries of this trend are companies that provide automation solutions to a wide range of industries that are adopting disruptive technologies to keep their operations lean, increase productivity, lower risks and crimp overheads.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Honeywell International Inc142.45 USD0.76
Rockwell Automation Inc210.90 USD-0.22
Siemens AG ADR61.27 USD2.19

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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