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Understand the Post-2025 Landscape: See how emerging policies—from the Biden administration’s AI Executive Order to shifting immigration rules—may accelerate robotics and AI adoption across U.S. industries.
Pinpoint Key Sectors Under Pressure: Discover which areas (construction, manufacturing, agriculture, logistics) face intensifying labor shortages and how automation can fill the gaps.
Forecast the Next Automation Cycle: Identify the policy tensions and structural reforms that could set off a sustained wave of robotics and AI implementation, reshaping supply chains and operational models.
Develop Forward-Looking Strategies: Learn practical ways to spot early movers, broaden your focus beyond mega-cap names, and stay ahead as these technologies reshape the economic landscape.
Looking ahead to 2025, American industry stands at a crossroads, with a policy landscape that appears increasingly favorable for robotics, automation, and AI. The groundwork laid by initiatives like the Biden administration’s AI Executive Order—encouraging broad adoption of AI across government—suggests that further policy shifts could accelerate these trends. At the same time, structural challenges and potential reforms across areas like trade and immigration are converging, creating both obstacles and unprecedented opportunities.
As domestic manufacturing regains focus and interest rates trend lower, the stage is set for one of the most significant automation cycles in recent memory. Thus, we expect to see a reshaping supply chains, labor practices, and competitive dynamics as American businesses adapt to a new era.
Manufacturing, construction, and logistics sectors have long awaited greater policy clarity and reduced regulatory friction. Add to this the possibility of new tariffs and potential deportation of undocumented immigrants—who currently comprise a substantial portion of the workforce in agriculture, construction, and processing facilities—and you have a scenario where labor shortages are likely to intensify. Under such conditions, robotics and AI solutions become not only economically attractive, but strategically essential.
I recently discussed these “less obvious” Trump trades on Bloomberg News Network (BNN). While Bitcoin’s recent price appreciation has drawn early attention, the more sustained and impactful story may be in automation and robotics. Watch the segment here.
There’s a clear tension between policies aimed at reshoring manufacturing, reducing inflation, and constraining certain labor pools. While proposals like streamlined green cards for STEM graduates might fill some specialized roles, they do not solve the larger labor gap in more labor-intensive sectors. Some form of vetted, solution-oriented immigration policy could help, but in its absence, robotics and AI stand ready to bridge the gap.
These developments could catalyze a long-anticipated “supercycle” of automation. TSMC’s Fab 21 in Arizona has exceeded yield expectations, demonstrating the viability of high-tech manufacturing in the U.S. I discussed Fab 21 in more detail on Schwab Network TV. This success, paired with the potential policy shifts, may encourage further onshore development and larger-scale adoption of robotics and AI-driven production lines.
Consider Foxconn (Hon Hai), which reported strong results and significant progress in the AI server market. In partnership with NVIDIA, Foxconn is developing substantial server manufacturing capacity in Mexico, diversifying its operations and tapping into new growth areas. Amazon, meanwhile, is advancing its own AI chip initiatives to reduce dependency on a single vendor. Similarly, ASML projects robust long-term growth—despite near-term regulatory hurdles—anticipating a trillion-dollar chip market by 2030. Collectively, these moves suggest that value creation will extend beyond a handful of mega-cap names to a more diverse range of ecosystem players.
We cover these two areas of physical automation and artificial intelligence, which are poised to benefit from ongoing policy shifts and industry transformations. The ROBO Global Robotics & Automation Index (ROBO) and the ROBO Global Artificial Intelligence Index (THNQ) track a broad range of participants in these ecosystems—integrators, component suppliers, software platforms, and enabling technologies—rather than concentrating on a few dominant names. With lower interest rates and the potential for increased M&A activity on the horizon, smaller and mid-cap innovators included in these indices stand to gain from growth and consolidation opportunities across the sector.
Importantly, this narrative goes well beyond the immediate headlines surrounding cryptocurrency rallies or the dominance of a handful of high-profile AI companies. The deeper, more enduring story into 2025 and beyond is the structural, economy-wide embrace of robotics and AI. By examining the full spectrum of companies represented in ROBO and THNQ, we can identify how these sweeping shifts in labor markets, regulatory environments, and supply chains are creating a lasting foundation for one of the most significant technological growth themes of the coming decade.
This article was originally published December 11th, 2024 on ETF Trends.
Understand the Post-2025 Landscape: See how emerging policies—from the Biden administration’s AI Executive Order to shifting immigration rules—may accelerate robotics and AI adoption across U.S. industries.
Pinpoint Key Sectors Under Pressure: Discover which areas (construction, manufacturing, agriculture, logistics) face intensifying labor shortages and how automation can fill the gaps.
Forecast the Next Automation Cycle: Identify the policy tensions and structural reforms that could set off a sustained wave of robotics and AI implementation, reshaping supply chains and operational models.
Develop Forward-Looking Strategies: Learn practical ways to spot early movers, broaden your focus beyond mega-cap names, and stay ahead as these technologies reshape the economic landscape.
Looking ahead to 2025, American industry stands at a crossroads, with a policy landscape that appears increasingly favorable for robotics, automation, and AI. The groundwork laid by initiatives like the Biden administration’s AI Executive Order—encouraging broad adoption of AI across government—suggests that further policy shifts could accelerate these trends. At the same time, structural challenges and potential reforms across areas like trade and immigration are converging, creating both obstacles and unprecedented opportunities.
As domestic manufacturing regains focus and interest rates trend lower, the stage is set for one of the most significant automation cycles in recent memory. Thus, we expect to see a reshaping supply chains, labor practices, and competitive dynamics as American businesses adapt to a new era.
Manufacturing, construction, and logistics sectors have long awaited greater policy clarity and reduced regulatory friction. Add to this the possibility of new tariffs and potential deportation of undocumented immigrants—who currently comprise a substantial portion of the workforce in agriculture, construction, and processing facilities—and you have a scenario where labor shortages are likely to intensify. Under such conditions, robotics and AI solutions become not only economically attractive, but strategically essential.
I recently discussed these “less obvious” Trump trades on Bloomberg News Network (BNN). While Bitcoin’s recent price appreciation has drawn early attention, the more sustained and impactful story may be in automation and robotics. Watch the segment here.
There’s a clear tension between policies aimed at reshoring manufacturing, reducing inflation, and constraining certain labor pools. While proposals like streamlined green cards for STEM graduates might fill some specialized roles, they do not solve the larger labor gap in more labor-intensive sectors. Some form of vetted, solution-oriented immigration policy could help, but in its absence, robotics and AI stand ready to bridge the gap.
These developments could catalyze a long-anticipated “supercycle” of automation. TSMC’s Fab 21 in Arizona has exceeded yield expectations, demonstrating the viability of high-tech manufacturing in the U.S. I discussed Fab 21 in more detail on Schwab Network TV. This success, paired with the potential policy shifts, may encourage further onshore development and larger-scale adoption of robotics and AI-driven production lines.
Consider Foxconn (Hon Hai), which reported strong results and significant progress in the AI server market. In partnership with NVIDIA, Foxconn is developing substantial server manufacturing capacity in Mexico, diversifying its operations and tapping into new growth areas. Amazon, meanwhile, is advancing its own AI chip initiatives to reduce dependency on a single vendor. Similarly, ASML projects robust long-term growth—despite near-term regulatory hurdles—anticipating a trillion-dollar chip market by 2030. Collectively, these moves suggest that value creation will extend beyond a handful of mega-cap names to a more diverse range of ecosystem players.
We cover these two areas of physical automation and artificial intelligence, which are poised to benefit from ongoing policy shifts and industry transformations. The ROBO Global Robotics & Automation Index (ROBO) and the ROBO Global Artificial Intelligence Index (THNQ) track a broad range of participants in these ecosystems—integrators, component suppliers, software platforms, and enabling technologies—rather than concentrating on a few dominant names. With lower interest rates and the potential for increased M&A activity on the horizon, smaller and mid-cap innovators included in these indices stand to gain from growth and consolidation opportunities across the sector.
Importantly, this narrative goes well beyond the immediate headlines surrounding cryptocurrency rallies or the dominance of a handful of high-profile AI companies. The deeper, more enduring story into 2025 and beyond is the structural, economy-wide embrace of robotics and AI. By examining the full spectrum of companies represented in ROBO and THNQ, we can identify how these sweeping shifts in labor markets, regulatory environments, and supply chains are creating a lasting foundation for one of the most significant technological growth themes of the coming decade.
This article was originally published December 11th, 2024 on ETF Trends.
