5 Robotics Stocks to Watch (the Droids You’re Looking For)

According to an article posted on September 10th, 2015 in The Street, (http://www.thestreet.com/story/13281861/1/5-robotics-stocks-to-watch-the-droids-you%E2%80%99re-looking-for.html) robots could soon be doing much more than just assembling your car or cleaning house, they could also be included in your investment portfolio. The Boston Consulting Group believes that the rapid growth in the robotics industry will be due to several factors. Currently robots perform roughly 10% of all manufacturing tasks, but they believe that number will jump to 25% by 2025. By the same year, they estimate that automation will cut manufacturing costs by 18-33% and increase productivity by 30% in countries such as South Korea, China, Japan, Germany, and the US. They also state that it’s not only the reduction in labor costs that’s increasing the trend in automation, it’s that the actual price of robots is decreasing over time. For example, the cost of an advanced robotic spot welder has dropped 27% since 2005, from an average of $182,000 to $133,000. The firm believes that price will continue to decrease an additional 22% by 2025. All of these factors and more are a clear sign to investors that the industrial robotics industry is going to experience rapid growth. The article projects that there are 5 robotics stocks to watch due to the growth in the automation industry. Those stocks are Google (GOOG), Yaskawa Electric (YASKY), ABB Ltd. (ABB), iRobot (IRBT), and Ekso Bionics Holding (EKSO). These companies are expected to see rapid growth through mergers and acquisitions in the robotics industry, and because they are currently industry leaders in robotics and focus on robotics innovations. Will the robotics industry actually grow like it is projected? How risky are some of the 5 stocks mentioned? Would you invest in any of these specific stocks?

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