Industrial Intelligence
Digital transformation has significantly impacted the industrials sector, where companies are using software, data and artificial intelligence (AI) to monitor and optimize their assets with the Internet of Things (IoT). From individual pieces of equipment to production lines, factories, fleets of mobile machinery (e.g., cranes), global manufacturing systems and supply chains, the forces of disruption are creating opportunities for companies to gain a competitive advantage.​

Graphic showing multiple stats on U.S. Bull Market growth 

  • The number of IoT devices and sensors in the industrials sector is expected to rise considerably through 2022 and beyond. With the help of AI, industrial companies embracing IoT can leverage smart technology for predictive purposes and thus recognize when a part is about to fail before it does so.

  • When a piece of equipment unexpectedly fails, it can disrupt a production line or cause injury. For example, when a plane is grounded waiting for a very specific replacement part, the downtime is incredibly costly. In a factory setting, a broken piece of machinery could injure a nearby worker who accidentally comes into contact with a defective part.

  • Reducing asset downtime through predictive maintenance is critical for industrial companies. Linking the IoT with AI can create a digital knowledge base that can be leveraged across a fleet of equipment, production systems and supply chains, creating a multiplier effect across an enterprise. As a result, IoT and digitization are driving growth in sensors, data collection and mobility.​

  • Several large industrial companies are providing the digital technology to enhance production and operational efficiency. Customers vary across the chemicals, petrochemicals, energy, refining, industrial, transportation, warehousing and aerospace industries. Businesses that embrace cutting-edge technology such as IoT will function more effectively, deliver products to customers faster and reduce their costs.​

The views expressed are the views of Fred Alger Management, Inc. as of April 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.​
Risk Disclosure: Investing in the stock market involves certain risks, and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.

This material must be accompanied by t​he most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.​

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