Robotics and automation are key technologies to offset tight labour market
Labour markets remain tight as we wrote in yesterday’s equity note causing wage growth to be elevated and continue for longer underpinning inflationary dynamics. Demographic headwinds in many countries around the world will not help on tight labour markets. As a result, many companies deploying thousands of workers in their production will be forced to automate their processes.
Automation technologies have existed for more than 100 years with the Ford T assembly line breaking the production into 84 individual steps and optimization those for efficiency and cost. Automation technology has constantly evolved in the industrial sector and with computers automation processes have advanced even more and many digital processes are being automated on a regular basis with the help of machine learning and recent generative AI models. In recent years, automation of warehouse has become a key competitive factor in logistics and e-commerce, and this market is perceived to be huge in the years to come. Increasingly, automation of the services sector will accelerate with self-servicing technology.
As tight labour markets and demographics will continue to be an ongoing theme we are working on an official Saxo theme basket on automation which will select automation and robotics stocks from different segments (warehouse, digital, industry production etc.). This theme is key one for the long-term investor.
List of automation stocks
- Rockwell Automation
- Intuitive Surgical
List of automation and robotics ETFs