The world is being automated.
That’s just an inevitable byproduct of technological advancement. As technology gets better and better, it eventually reaches a point where it surpasses humans at certain tasks. When that happens, companies start using the technology in place of the human, because a technology is cheaper and faster.
Automation is a natural part of the technological evolution.
Cars are being automated. Call centers are being automated. Delivery services are being automated. Software development is being automated.
Welcome, folks, to the Automation Economy.
Embracing the Automation Economy
In the Automation Economy, eventually and inevitably, almost all mundane and repetitive tasks will be automated.
One such vertical of this automated-everything megatrend that I’m super excited about is the seismic shift toward automated warehouses.
Here’s the story:
Everyone is shopping online now. This shift in consumer shopping preferences has sparked an equally large shift in fulfillment processes.
Long ago, when consumers went to stores and bought things, fulfillment was done in stores. Today, consumers sit at home and expect a package to be delivered to their doorstep that same day. Fulfillment is now done in warehouses – and it needs to be done rapidly.
This shift in fulfillment has put an increased burden on the logistics market. Ultimately, it has highlighted the shortcomings of the decades-old, incumbent fulfillment process wherein people package, sort, and fulfill orders in antiquated warehouses.
Humans are slow. They’re error prone. And they need to be paid. Not to mention, there is a huge labor shortage in the economy right now.
Thus, human-driven fulfillment is slow, error prone, and expensive.
What’s the fix? Automate warehouses. Replace humans with artificial intelligence (AI) powered robots that are fast, flawless, and cheap.
The Future Is Here
This is already happening. Amazon (NASDAQ:AMZN)acquired robotics company Kiva Systems back in 2012. Even since, the company has spent an arm and a leg to automate warehouses. Today, Amazon has over 200,000 robots in service, and fully automated warehouses that fulfill orders rapidly, perfectly, and cheaply.
The results speak for themselves.
How else do you think Amazon offers same-day delivery and beats everyone else in the delivery space? How else do you think Amazon makes that delivery free?
It’s all thanks to Amazon’s automated warehouses.
Now, everyone else – like Walmart (NYSE:WMT), Target (NYSE:TGT) and Home Depot (NYSE:HD) – needs to play “catch up” and automate their own warehouses… or else they risk being completely dominated by Amazon.
But here’s the problem: Only 5% of warehouses are currently automated, and over 90% of picking is currently done manually.
In other words, everyone not named Amazon in the logistics and retail worlds needs to invest a lot of money into automating their warehouses over the next decade.
The result? A boom in demand for automated warehouse technology.
This boom will be massive. Annual warehouse labor spending in the U.S. measures more than $230 billion. Throw in another $50 billion for automated material handling equipment (like forklifts), and you’re talking about a $280-plus BILLION revolution here…
And one small company that no one is talking about today is at the epicenter of this boom.
You see, there are two ways to automate warehouses.
The first way is to build entirely new, robot-friendly warehouses from the ground up.
This is a technologically easier way to automate warehouses (since you are building a new, controlled, and homogenous environment that the robots in these warehouses don’t have to “learn”). But it’s economically more expensive, since building these warehouses is very costly and requires that you essentially “demolish” your old warehouses.
This is what Amazon is doing. It is building completely new, fully automated warehouses.
The second way is to integrate AI-powered robotics solutions into existing warehouses.
This is a technologically harder way to automate warehouses (since warehouses are non-homogenous, and therefore, these robots must be capable of advanced learning and adjusting to any warehouse). But it’s also a much cheaper method since you don’t have to build new warehouses or get rid of your existing warehouses.
This is what most companies will end up doing.
That’s because the giants in this space – Walmart, Target, FedEx, The TJX Companies, etc. – collectively have thousands of warehouses, strategically located across the world. Demolishing and rebuilding each of those would be far too expensive. So, instead, they will integrate AI-powered robotics solutions into their existing supply chain.
That’s technologically a very hard problem – so hard, indeed, that it appears only one company has cracked the nut…
Which company, you ask? Well, I’m going to reveal more about how to learn the name and ticker symbol of this company tomorrow – on Wednesday, August 18 at 7 p.m. ET – at my 1 to 30 Wealth Summit. I encourage you to take a moment to reserve your seat here.
This is an automated tech startup that I think could easily soar at least 30X from current levels, which is why I’ve included it in my new portfolio designed exclusively for my 1 to 30 Wealth Summit.
This portfolio also includes six other hypergrowth technology stocks representing the next generation of tech stock “super winners” – each of which I feel has at least 30X upside potential.
Yes, I’m talking about a portfolio crammed from peak to trough with “the next Tesla,” “the next Amazon,” “the next Facebook,” and the next wave of tech superpowers.
Buying them today could change your life forever.
And I want to give you the opportunity to do just that… on Wednesday night at 7 p.m. ET.
Don’t forget to sign up here (it’s completely free and painless) and to mark your calendars afterward. This will be an event to remember for the ages! I hope to see you there.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.