This Hot New Tech Is Solving the Labor Shortage
Back in 2017, fast-food restaurant CaliBurger introduced its newest employee: Flippy.
Flippy is a burger-flipping robot.
Its iconic feature is an arm that can flip burgers on a griddle.
It can also:
- Deep fry a basket of chicken tenders.
- Prepare french fries.
- Clean its spatula in-between batches of burgers.
Flippy’s sensors and cameras ensure that it cooks everything perfectly each time.
And Flippy doesn’t get exhausted or hurt from standing in front of hot griddles and oil all day.
Since its debut, Flippy has also managed to get jobs at Dodger Stadium and White Castle.
Still, Flippy isn’t something you see at most fast-food restaurants.
But that may be about to change soon.
Why Businesses Are Being Pushed to Automate
According to industry group A3, North American companies added a record number of robots in 2021.
Businesses ordered 37% more robots than last year.
Historically, auto manufacturers have been the No. 1 buyer of robots.
But this year, their orders only increased 20%.
Meanwhile, non-automotive orders increased 53%.
This includes sectors like metal fabrication and food manufacturing.
The Rush to Add More Robots
Post-pandemic conditions are driving the rush to add more robots.
Demand has risen sharply, leading to shortages of key goods.
But companies are unable to increase the supply of these goods. So far, they’ve been unsuccessful at bringing back workers.
Not to mention robots have gotten cheaper since the 1990s, especially when compared to labor.
According to a McKinsey analysis, labor costs have more than doubled in the last 30 years.
In the same time, the cost of automation has fallen by half.
This has motivated many companies to add more robots.
According to MarketsandMarkets, the industrial robotics market will increase 78% by 2026.
Flippy is responding to this growth in demand.
Flippy’s siblings, Flippy 2 and Flippy Wings, will launch in early 2022.
How to Invest in Industrial Automation
One option is to buy the Robo Global Robotics and Automation Index ETF (NYSE: ROBO).
ROBO invests in:
- And more exciting tech trends.
It’s already up 32% in the last year.
But if you’re looking for a more lucrative investment, focus on these robots’ eyes and ears.
Their sensors and cameras are what allow them to perform precise tasks.
The companies that provide these technologies are headed for success in the near future.
Check out Ian King’s Strategic Fortunes service for one of the hottest sensor stocks.
Research Analyst, Strategic Fortunes
From open till noon Eastern time.
Elektros Inc. (OTC: ELEK) is small Florida-based electric vehicle maker. The stock is up 12% today as a continuation of its outlandish 1,500% rise from Tuesday when Michael Dezer, a wealthy property developer with ties to former President Donald Trump, became a majority shareholder in the company.
Minth Group Ltd. (OTC: MNTHY) is a Chinese auto parts manufacturer. It is up 11% on the release of a new research report that names the company as a key global supplier of auto parts over a forecasted period of seven years.
Guangzhou Automobile Group Co. Ltd. (OTC: GNZUF) is a Chinese electric vehicle manufacturer that is up 10% today. The stock is trading in sympathy with other Chinese electric vehicle companies that were recently issued ratings by Wall Street firm Bernstein.
On Holding AG (NYSE: ONON), the sports apparel and accessories company, is back on the list today, continuing its momentum from Tuesday when it announced impressive results for Q3. The stock is up 10%.
Arqit Quantum Inc. (Nasdaq: ARQQ) is a quantum encryption technology company. The stock is up 9% this morning on real news and is being driven by more of the volatility that it has become known for.
Novavax Inc. (Nasdaq: NVAX), the vaccine maker, is up 8% this morning. The move came after the company reported that its COVID-19 vaccine was granted Emergency Use Authorization by the Philippines, and that the European Medicines Agency has begun evaluating the vaccine for Conditional Marketing Authorization.
Maxar Technologies Inc. (NYSE: MAXR) provides earth intelligence and space infrastructure solutions globally. It is up 8% today thanks to recent positive media coverage of the company.
AvidXchange Holdings Inc. (Nasdaq: AVDX) provides accounts payable automation software and payment solutions for middle-market businesses and suppliers. It is up 8% after reporting results for Q3 with strong revenue growth and continued demand for its products.
LumiraDx Ltd. (Nasdaq: LMDX) operates as a health care diagnostics company. It is up 8% as part of a general uptrend in the stock since the company reported strong earnings last week.
The TJX Companies Inc. (NYSE: TJX), the discount retail store operator, is up 7% this morning. The move came after the company reported strong results for Q3 despite the supply chain challenges and announced that it was increasing its planned stock buyback for 2022.