The Rise of Robotics: Companies to Watch Amid Rising Shifts to Automation

eadlines have been painting a bleak picture of high inflation, worsening leading economic indicators, a hawkish Federal Reserve and investor sentiment ranging from glum to “I need a month-long Netflix binge.” In addition, much of the developed world and some developing nations are facing slowing economies with aging populations and high debt levels. While that doesn’t sound great, this dismal picture also creates powerful tailwinds that might lead to a longer-term future that is more Jetsons than economic Armageddon, thanks to technological advances.To get more news about Robotics as a Service, you can visit glprobotics.com official website.

I’m talking about the rise of robotics, and contrary to the doomsayers, it has the potential to raise the standard of living faster than any other technology mankind has ever experienced. We are at the beginning of what will likely be exponential growth in robotics technology thanks to ongoing advances in Artificial Intelligence (AI), edge computing and high-speed internet access with the proliferation of 5G. But first, let’s talk about the drivers of growth.

Two simple factors drive the growth of an economy: the growth of the labor pool and improvements in productivity.

The U.S. has seen growth in the labor pool slow from an annual rate of change of 3.3% in 1978 to less than 1% for most of the last decade, which means that to maintain the levels of GDP growth experienced in prior decades, productivity needs to improve at a higher rate. This isn’t just a domestic problem either. Much of the developed world is facing aging populations and weak labor pool growth because of low fertility rates, resulting in labor shortages. Since March 2018, there has been more than one job opening for every job seeker in the U.S. (excluding during the worst of the pandemic), which is a headwind to growth.
Throughout much of Europe, China, Japan and the United States, we are seeing a demographic shift, with a higher percentage of the population in their senior years than ever before thanks to the combination of better healthcare (we live longer) and declining fertility rates. This also implies a growing demand for healthcare as the most significant portion of an individual’s lifetime healthcare spending typically occurs in their senior years.

According to Statista, nearly a quarter of retail sales worldwide will be online by 2026, which means further growth in fulfillment centers and shipping logistics. Increasingly, many of the steps from when an order is placed through to delivery can be addressed by robots that don’t get tired, don’t need bathroom breaks or holidays and are perfectly fine spending their entire lives inside a distribution center.

The pandemic accelerated the existing geopolitical-driven trend towards on-shoring or near-shoring manufacturing. The invasion of Ukraine and the related energy crisis add additional tailwinds. This supply chain adjustment is occurring under tight labor market conditions, which means higher wages, and thus making robotics relatively less expensive.

Aside from the onshoring trend, we are also amid a global shift in transportation technology as nations look to reduce emissions. According to the International Energy Agency, the invasion of Ukraine is accelerating that transition, and it expects to see the demand for all fossil fuels falling or plateauing going forward.