Goldman Sachs Says The Cost For A Small Robot In China Has Dropped Below The Annual Cost Of A Human Chinese Assembly Line Worker

In a note to clients Wednesday, Goldman analyst Yuichiro Isayama detailed six innovations which are gaining traction through 2017.

Isayama list six promising areas:

1. Small robots – cheaper now and able to work alongside humans,
2. Electrification of automation – actuators drive change,
3. Smart factories take shape as IoT manufacturing platforms come to reality,
4. More complex Logistics requirements drive greater automation,
5. Machine vision maximizes quality, productivity, and flexibility, and
6. “Softwarization” of capital goods progresses.

Isayama further adds that price erosion has now cut the cost involved with introducing machinery "to the point where users can seriously consider replacing workers" on Chinese assembly lines.

Isayama rates US stocks which are exposed to this automation as Neutral on valuation. US stocks mentioned in the report were Teradyne (NYSE: TER), Rockwell Automation (NYSE: ROK), General Electric (NYSE: GE), and Cisco (NASDAQ: CSCO).

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