See the guy in the photo? Hesafter your job. And if growth estimates forthe robotics and automation industry are accurate, hes likely to get it sooner rather than later, especially if a large proportion of your work involves repetitive, monotonous tasks.
Thats the conclusion reached by futuristMartin Ford in his bookThe Rise of the Robots. While some may dismiss his predictions of mass unemployment as fancifulat best and scaremongering at worst,hes certainly not alone in suggesting that wereentering a new age, one likely to rival the industrial and digital revolutions in terms of its economic and social impact. Last year, a study by researchers at Oxford University and Deloitte suggestedthat 35% of current jobs in the UK areat risk of being automated in the next 20 years as more organisations appreciate the benefits that this increasingly sophisticatedtechnology canbring.
Robots never get sick. Theyre never delayed bytrafficorneed to take holidays. Office politics? Not an issue. Some robots can already performtasks and learn new skills at a faster rate than you or I ever could. And as the years pass, theyre getting increasingly cheaper for businesses to buy. These benefits point towhy,along withcybersecurity, robotics and automation looks set to be one of the hottest growth trends for the foreseeable future. Prospective investors may need to move fast.
Arise, investors!
The majority of companies working in this fieldhail from the US and Japan. The latter shouldnt come as a surprise since its currently wrestling with the problem of how tocare fora very large, ageing population.In the US, familiar names likeGoogleand Amazonare also heavily involved, their almost limitless funds allowingthem to easilypurchasesmaller companies showinglots of potential.
For thoseinvestors who prefer to look closer to home for opportunities however, the options are limited. That said, one company thatmay warrantfurther research is AIM-listed software developer,Blue Prism (LSE: PRSM). Specialising in robotic process automation, the 153m caphelps businessescompleteroutine tasks by creating a virtual workforce. These invisible robots mimic what a human would do on a keyboard when undertaking administrative duties, allowing the latter to focus onmore important, creative work. Its both clever and potentially hugelylucrative work.
Despite only arriving on the market in March, investors have piled in,leading Blue Prismsshares to rise from 78p to a high of 290p bylate August, despite the company still being lossmaking during this period ofrapid growth. The fact that Blue Prismcan count the NHS, O2 and the Co-operative as customerssuggests this optimism isntmisplaced. Although arguably riskier than your standard blue chip, this company appears to havebright future ahead of it.
Those reluctant to place their hope (and capital) in a singlecompany, regardless in the world ithappens to be based, may be attracted to the exchange traded fund offered by ETF Securities (LSE: ROBO). In addition to providing instant geographical diversification, this fund invests in a basketof both established and youngrobotics and automation companies. If youre lookingto profit from the robot revolution but unwilling to take on board additional, stock-specific risk, this might be a great place to start.
Don’t forgetthe future
The scarcity ofcrystal ballsin investing can cause shareholdersto focus rigidly on current and past performance. Unfortunately, this fixation makes them less likely to contemplatehowthings may change for their companies in the next five, 10 or 20 years. While nobody can know the future for sure, this mistake carries with it potentially heavy financial penalties.
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Paul Summers owns shares in Blue Prism and ROBOGlobalRobotics and AutomationGO UCITS ETF. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
