Top 10 trade ideas for 2014. Proposition #6: Technology ubiquity
Wherever we are and whatever we look at, modern technology and robotics impact nearly every aspect of our lives. In the medicine, food and industrial industries, and even in sports, technology is converging towards faster, leaner and more secure processes.
For most sectors, the industrialization process is still in the early stages. The car industry is probably the most industrialized sector with an average car facility deploying some 700 robotic applications for every 10,000 employees. In comparison, other industry sectors work, on average, with about 49 advanced automated processes per 10,000 employees. Indeed, there is a massive amount of potential to review established working methods. Obviously, the modernization of a working process leads to more customization, smaller production units and is less labor intensive. But furthermore, as low to medium qualified jobs are modernized, new opportunities are created elsewhere, usually at the conceptual stage of the “to be industrialized process”.
Yet, as the world becomes globalized and highly technologized, only a few companies are addressing the challenge of re-conceptualizing working processes. The key characteristics of re-conceptualizers are that they are far-sighted, vigilant and have an astute understanding of the important economic challenges ahead. Entities mastering these challenges are key to the future and generate above average long-term growth investment opportunities for investors.
The companies mentioned in the downloadable document have well-established processes in this area, and are therefore considered to be enablers and efficient users of technology. Top 10 trade ideas for 2014 Proposition 6 Technology ubiquity.pdf
Quick-link to company reports: ARM, GTO, SAP, ATCO, ROG, ADS, DAST, SYNN