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President-elect Donald Trump criticized United Technologies Corp's Carrier unit in November for its plan to move some 800 jobs to Mexico, the parent-company made a swift decision to keep the factory in Indiana. Yet, the move did not translate into saving jobs. Instead, the company decided it would move toward automation as a way to cut costs. "We're going to make up [the] $16 million investment in that factory in Indianapolis to automate, to drive the cost down so that we can continue to be competitive," chief executive Greg Hayes said on CNBC last month. "What that ultimately means is there will be fewer jobs." Swapping robots and software for human labor has underpinned much of the productivity gains in the United States over the last 25 years. Now, with a greater political push to keep factories at home, investors are betting that automation will gain speed in industries ranging from auto manufacturing to chicken processing to craft beer breweries. The big winners so far include Rockwell Automation Inc , General Electric Co and Cognex Corp , which have seen jumps in fund ownership of 80 percent or more in the current quarter compared with the previous quarter, according to a Reuters analysis of Morningstar data. The ROBO Global Robotics and Automation Index ETF is up 7.5 percent since Election Day, or about 15 percent more than the S&P 500 index, after underperforming the broad market for the majority of last year. Its largest holdings include cleaning products maker iRobot Corp , Japanese factory automation company Fanuc Corp< 6954.T>, and drone aircraft company AeroVironment Inc . But the push toward automation could also cut into the number of jobs saved or created in the United States, undercutting Trump's boast in a news conference last Wednesday that he would be "the greatest jobs producer that God ever created." [L1N1F112E] CUTTING LABOR COSTS Declining costs of technology are expected to accelerate the growth of robotic manufacturing.


For the original version including any supplementary images or video, visit http://m.nasdaq.com/article/us-investors-see-more-automation-not-jobs-under-trump-administration-20170119-00026



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