I don’t know about you, but I think it’s about time we kill inflation. I’m tired of $5 gas, $100-plus small grocery hauls, and $500 local flights. It’s time we bid farewell to these sky-high prices.
Easier said than done, you say? Well… not really.
Unbeknownst to most of the public, there’s actually a single emerging technology that is ready to kill inflation right away.
It’s arguably the most complex technology to have ever existed. Engineers and scientists have been working on it for years. And it’s now ready to be unleashed to the world.
The timing couldn’t be more perfect. You see, this tech is the ultimate deflationary tool and will serve as humanity’s greatest weapon in fighting inflation. Indeed, corporate America is already adopting it in bulk to dramatically reduce its costs. And the trend is just beginning.
Over the next few months and years, companies across the globe will adopt this tech faster than they’ve adopted anything before.
The result? Inflation will be fixed.
And today, folks, you have an opportunity to invest in this breakthrough technology that will, in some ways, save the world. It’s the opportunity of a lifetime and one I wouldn’t pass up anytime soon.
So… what breakthrough tech am I talking about?
The Shift to De-Globalization
Before we talk about this breakthrough technology, we need to first understand why today’s inflation is so bad.
The simple explanation is globalization — or, more specifically, its reversal.
Specifically, over the past 40 years, the global economy has morphed into a web of interconnected dependencies. Everything affects everything.
Russia invades Ukraine. Consequently, Ukraine can’t produce chicken because all the farmers are fighting a war. Ukrainian exports of chicken drop tremendously. And they’re the world’s sixth largest chicken exporter, so global chicken supply drops meaningfully. Prices rise everywhere, even 5,000 miles away in the United States.
Similarly, Russia invades Ukraine, and the Western World throws sanctions on Russian oil to cut off the Russian economy. Global oil supply drops meaningfully. Prices rise everywhere. Gas prices in America – 5,000 miles away from the fighting in Kyiv – rise 50%.
It’s all connected.
Therefore, one might easily say that the fix to today’s inflation problem is to “disconnect” everything. End globalization. Say hello to localization.
Localization Can’t Solve Inflation Alone
Theoretically, that sounds great. In a de-globalized world, a Russia-Ukraine war shouldn’t impact energy or food prices in the U.S.
But in practice, localization without technological innovation will only worsen today’s inflation problem.
Ask yourself: Why did we globalize in the first place? Ironically, we did it to beat inflation. Specifically, we sought to optimize the cost efficiencies of various economies, leveraging what is known in economics as “comparative advantages.”
Sure, the U.S. has some oil, but Russia has way more of it. And it can extract it at a much lower cost because it’s so abundant. Therefore, we built a dependency on Russian oil because it’s inherently cheaper than U.S. oil.
It’s the same story with all those factories in China. Why did U.S. companies start outsourcing manufacturing to China? Cheaper labor. Cheaper labor leads to lower manufacturing costs, which leads to lower final product prices and lower inflation.
For decades, globalization has actually been a huge deflationary force.
To that end, we cannot simply reverse the wheels on the globalization trend without adversely impacting inflation.
Simple localization of supply chains will make today’s inflation problem infinitely worse. Just building out a bunch of oil refineries and vertical farms in the U.S. to establish energy and food independence would cost a fortune – and only exacerbate inflation.
But advanced localization of supply chains using the breakthrough technology I mentioned earlier won’t make today’s inflation problem worse. Instead, it’ll fix today’s inflation problem –maybe forever!
The Fix Is Automation
To fix today’s inflation problem, America needs to localize its supply chains using automation technologies.
That’s right. I’m talking machines, robots, and software programs. Working together, they are the inflation killer.
If companies localize and automate supply chains, they’ll destroy this unreliable web of global dependencies while keeping manufacturing costs low. And, indeed, they’ll even be able to dramatically reduce their manufacturing costs.
For example, let’s say a company has built a manufacturing facility in China because of the cheap labor. Currently, that facility is likely running at ~80% capacity due to continued COVID-19 lockdowns. And therefore, it doesn’t have enough product to fulfill demand and neither do any of its competitors. So, they’re all bidding for whatever product does come across the Pacific Ocean, driving input prices way higher. This leads to both lower revenues and lower margins for the company and higher prices and longer lead times for customers.
It’s a lose-lose situation.
Localization, Meet Automation
But imagine that same manufacturing facility is rebuilt in America. It uses a bunch of robots to build, sort, and package products. That eliminates labor costs associated with warehouse workers and improves throughput via 24-hour work shifts.
Further, imagine those robots load all those packages into autonomous electric trucks that drive themselves to deliver the product. That eliminates logistics-related fuel and labor costs and shortens lead times via constant uptime.
Even further, imagine that entire process is controlled autonomously via a cloud software platform that connects all the moving parts. That eliminates labor costs associated with managers and enhances operational efficiency via constant and dynamic data-driven decision-making.
In that world, the company has 100% control over its supply chain. It’s always up and running. There’s never a product shortage. It doesn’t have to pay high labor costs associated with warehouses. And it doesn’t have to pay UPS (NYSE:UPS), or USPS, or FedEx (NYSE:FDX) for transportation fees.
It can make more product at lower prices, resulting in higher revenues and profit margins for the company and lower prices and wait times for customers.
That’s a win-win situation.
Indeed, advanced supply chain localization via automation could turn today’s lose-lose inflation situation into a win-win for businesses and consumers.
Folks, welcome to the Automation Economy.
The Dawn of the Automation Economy
The Automation Economy is simply the integration of automated technologies into today’s business operations to reduce costs, increase efficiency, and maximize throughput.
That includes using automated machinery to mine raw resources. It includes using autonomous trucks, ships, planes, and trains to transport those raw resources to production facilities. It includes using robotics and software to turn those raw resources into usable products, package and ship them to their final retail destinations. And it includes using machine vision and RFID technologies to enable person-less store checkouts.
It includes everything.
Make no mistake. The Automation Economy is the future. Society is constantly evolving toward lower-cost, higher-efficiency solutions, and automation enables that future of business.
Real-World Inflation Adoption
Until recently, the Automation Economy has been the stuff of science-fiction movies and books.
But modern advancements in artificial intelligence, edge computing, machine learning and vision and more have enabled science-fiction to become realities.
Just last month, Walmart (NYSE:WMT) announced that it will be integrating a full-suite, end-to-end automation system from Symbotic (Nasdaq:SYM) into its 42 regional distribution centers. This system combines giant robot arms with a fleet of mini “Symbots” — mobile, multi-purpose robotic machines. (They look like a hybrid of a forklift and a go-kart). And they’ll be used to fully automate nearly all processes in a warehouse or distribution center. It’s really awesome technology. And for those interested, I’d suggest you watch this video demonstration of Symbotic’s tech.
Walmart first launched the tech in a few warehouses last year. The company has since achieved industry-leading throughput at those locations using Symbotic’s technology. That early data has been so promising that just a year later, Walmart decided to adopt Symbotic tech everywhere. By 2028, every Walmart distribution center in America will be fully automated.
Walmart isn’t alone is the rapid and sudden uptake of automation technologies.
The Cross-Industry Automation Uptake
Across the restaurant industry, companies are turning toward automation to help with staffing shortages. Chipotle (NYSE:CMG) is using robots to make tortilla chips at certain locations, while White Castle is using a different version of the same robot to make burgers. Chili’s has its own robot servers — Rita the Robot — in use at more than 50 locations nationwide. Domino’s (NYSE:DPZ) is delivering pizzas using autonomous cars in Houston.
Restaurant automation has arrived.
And so has retail automation. Sam’s Club is using robots to clean floors and take stock of inventory on a daily basis. Kroger (NYSE:KR) is using robots to prepare grocery delivery and pick-up orders. Amazon (Nasdaq:AMZN) has built entire cashier-less and checkout-free retail stores using a combination of hardware and software automation technologies. You simply walk in, pick up your items and walk out. Your purchases are charged to your Prime account.
Folks: We presently sit at the dawn of the Automation Economy.
Things are only going to accelerate from here.
Research firm ABB recently released the results of a survey of 1,610 executives in the U.S. and Europe. An astounding 62% plan to invest heavily into robotics and automation over the next three years. According to ABB:
“Business leaders are responding to unprecedented supply chain disruptions by putting into place measures to make operations more resilient and adaptable.”
All told, the Automation Economy is expected to grow by over 25% per year over the next five to 10 years, according to every major research firm that covers the space.
We truly stand at the base of a Mt. Everest-sized economic opportunity. But only those who invest in this emerging technology today will make fortunes in the long run.
The Final Word on Killing Inflation
In our flagship investment research advisory, Innovation Investor, we only invest in the early stages of Mt. Everest-sized economic opportunities with the intention of making fortunes.
The Automation Economy is one such opportunity.
But it is far from the only one.
In fact, another “inflation-killing” technological megatrend that we are very excited about these days is electric vehicles.
With gas prices soaring above $5 per gallon, Americans are increasingly looking for alternative modes of transportation. And electric vehicles offer the best option.
Everyone thinks of Tesla (Nasdaq:TSLA) as the biggest and best EV maker in the world. But we think the company that will dominate the industry hasn’t even made a car yet.
Of course, that’s a shocking statement.
Naturally, I just put together an exclusive presentation to talk about this very company, its super-exciting upcoming product launch, and all the amazing 10X investment opportunities attached to this EV “shocker.”