How to Take Advantage of Robotics in the Workplace with Equipment Leasing
For decades, we have been exposed to robots in science fiction - playing prominent roles in literature, films, and many other forms of entertainment. We’ve seen stories of sentient robots taking over the world and destroying humanity. We’ve also seen robots sacrifice themselves for the salvation of the single man. Somewhere on this spectrum, at a much more practical point between those two extremes, is where the current state of robotics truly lies.
Robots aren’t just in our storybooks or on our screens anymore. When most people think of modern robots, they often picture large machines like those used in manufacturing, healthcare, or other science-based applications. But we use robots in our everyday lives. It is incredible how pervasive robots have truly become - with robots sweeping our kitchen floors and sitting on our kids’ shelves. Robots are everywhere and do just about everything.
We may never see the types of robots we are familiar with from stories. But more and more, the distance between science fiction and reality is being shortened.
Robots have become integral to workplaces. Many industries would not be able to function without them and this only becomes more true as time goes on. Robots are being used every day to solve the very practical problems of our current lives, often filling gaps in the labor market and handling jobs for which there are no people to fill.
This means that investment opportunities await.
Robotics in the Workplace
In the past few years, there has been a growing concern that the use of robots in the workplace would eliminate jobs by replacing human workers. There are numerous fears that robots will be so efficient and cheap that employers will no longer need or want humans to be a part of the workforce. After all, robots don’t require overtime or insurance.
Fortunately, these fears have proven to be unfounded, as robotics have been necessary in many cases just to fill the gaps seen in the labor market. Robots are helping to keep production levels steady and are reducing workloads from overburdened workers who have not succumbed to the Great Resignation. Workers who are overburdened in this way are more likely to burn out and quit, furthering the cycle of resignations.
Robots in the workplace could also assist in bringing manufacturing back to the United States, helping relieve some of the supply chain issues we’ve seen in the past 2 years. As our economy changes and people look more for remote work, robots may become even more important in keeping traditional industries alive.
Robots in the workplace could bring tremendous benefits, some of which we’re only just beginning to understand.
What Is Equipment Leasing?
The increasing use of robotics in the workplace presents an excellent opportunity for anyone considering investing in equipment leasing. This type of investment can be a great hedge against inflation and a shelter from market volatility.
Demand for robots has surged and manufacturers have ramped up production to meet the growing need. If you’ve been thinking about diversifying your portfolio, now could be a good time.
There are two main ways you can get involved with equipment leasing - using your self-directed IRA to invest in equipment leasing funds or investing in physical assets.
When you invest in physical assets, you buy the equipment and lease it out directly to the businesses that need them. With this option, you will be responsible for operating your equipment leasing business and vetting lessees.
If you use your self-directed IRA to invest in a fund, you will have the opportunity to spread your investment out into many different sectors. This can provide peace of mind and security for anyone worried about putting too many eggs in one basket. This can be particularly beneficial when it comes to investing in the equipment for robotics.
Equipment leasing can provide you with numerous benefits such as a consistent income stream (cash-flow), diversification, strong collateral, tax advantages, and (potential) high returns.
Investing in Robotics Through Equipment Leasing
One benefit of investing in equipment leasing with the surge in robotics is that you’re not limiting yourself to one company or even one branch of robotics. When you invest in the equipment used to manufacture robots, you automatically diversify your portfolio. The same or similar equipment is used in many different ways, so you have a higher chance of reaping consistent profits.
Similarly, if you choose to purchase the equipment yourself and lease it out, you have the opportunity to reuse the same equipment over and over. Multiple types of businesses will need the same equipment, so you can change the type of industry you lease to based on market conditions.
This means you have a lot of flexibility with your investment, no matter which way the market turns. Considering how volatile the market has been lately, this is a huge benefit.
Overall, the field of robotics is fairly new and is constantly evolving. It’s difficult to predict which direction it will go and what areas will be most profitable. This is why investing in the industry indirectly through equipment leasing is a solid approach. It gives you the flexibility to alter your investment strategy as time goes on.
We may never see a day when robots walk among us on the street, but we are certainly seeing a surge in robotics due to the gaps left in the labor market by lockdowns and the Great Resignation. Savvy investors can take advantage of these gaps by noticing the upward trend of robotics in the workplace and investing in equipment leasing.
Invest In Workplace Robotics With Chicago Trust Administration Services
At Chicago Trust Administration Services, we know the ins and outs of using your self-directed IRA to invest in equipment leasing. A self-directed IRA can give you more options for making alternative investments outside of traditional stocks and bonds, but it’s important to keep in mind the legalities of these types of investments.
We can help you determine how to best diversify your portfolio while providing you with the latest education on IRS requirements so you can avoid prohibited transactions.
To see how we can help, we invite you to schedule a complimentary meeting with us by calling 312-869-9394 or emailing steve@ctasira.com.
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*The content and opinions in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
**CTAS professionals are not financial advisors and cannot provide advice or recommendations regarding specific investment decisions.