SIEGY - This Hot Trend Should Lead Investors to Reach for the Buy Button
2023-04-04 10:46:00 ET
Demand for automation will likely stay strong, even during an economic slowdown, because it enhances productivity. In addition, after a few years where industrial companies have struggled with overly complex supply chains stretched across far-flung corners of the world using multiple suppliers, it makes sense to invest in technology that makes it easier to re-shore production. That's why companies like Rockwell Automation (NYSE: ROK) , Emerson Electric (NYSE: EMR) , and Siemens (OTC: SIEGY) are seeing strong growth. Here's why automation is a significant sector to invest in.
It's no secret that growth is slowing in 2023, and that's usually bad news for automation companies that rely on their customers' capital spending plans -- which are among the first things that tend to get cut in a slowdown.
However, the economy has been far from normal over the last few years, and the powerful underlying growth drivers (touched on above) remain in place. Simply put, the productivity gains implied by shifting to automated production and the need to create less complex and more flexible supply chains mean that automation demand remains strong.
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This Hot Trend Should Lead Investors to Reach for the Buy Button