
Andrew Obin, Managing Director, BofA - Digital Machinations
Momenta I Digital Thread
The Multiple of Industrial Names
We are seeing, right? I mean, you should think about automation as a multiple of industrial production industrial capex. As we have this sort of demographic issue in US labor force, that is just forcing companies to adopt faster and faster. On top of it, if you look at the structure just beyond that, the simple relationship that we have observed between labor costs and automation is that any spike in labor costs tend to follow by automation standing two years after. SoI think that market is very, very hot. A second company is being more proactive on software and M&A. And you're just starting to see it, right? Ford have followed by trying to sort of buy these more
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