How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive the fourth industrial revolution.

Robots making vans
Emerging technologies will mean even greater automation
(Image credit: © Zhu Haipeng/VCG via Getty Images)

We’ve all heard in school about the first industrial revolution and how the steam age transformed the world. The mass adoption of electricity that began in the late 19th century ushered in the beginnings of mass production, while after World War II, automation, robotics and computers further transformed the way things were made. Now, another wave of big change is sweeping industry. Whether you call it the “fourth industrial revolution”, “industry 4.0” or “smart manufacturing”, this evolution is set to power a new era of growth.

The best way to sum up the fourth industrial revolution is as “the coming of age of technologies developed during the last two decades”, says Mark Yeeles, who heads the industrial automation business at Schneider Electric. While many of these technologies may have been around in some form for several years, their development has now reached the point where they are so cost-efficient that they are starting to move from the research laboratory to the factory floor. In short, it is the “coming together of people, culture and technology to solve sophisticated challenges”.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri