Tomasz Godziek, Bank J Safra Sarasin
Growth has stagnated in global manufacturing, construction, and automotive engineering industries and the adoption of technology could provide better products and more cost-efficient operations, said Godziek, speaking at a media event in Hong Kong last week.
For example, mass production becomes more cost-efficient with 3D printing as it requires a smaller amount of raw materials to produce a stronger product because objects are built layer-by-layer, he explained.
“Currently, 3D printing is primarily used in prototyping that is made of plastic,” he added. “However, it is expected to move into the manufacturing process in the near future. Stronger raw materials, such as metal, can be used in 3D printing, too,” he added.
“In long run, 3D printing technology may transform the manufacturing sector and the whole supply chain. It is also possible to see more production from the Western countries,” he noted.
As costs fall for these new technologies, adoption by traditional manufacturers will accelerate, he believes.
“Manufacturers are slow in their adoption in technology innovation but it is going to change. The reason is that the cost of technology is falling dramatically,” he said.
Another example is commercial drones. “For a commercial drone ten years ago, cost was more than $100,000 and the cost of such drones today are below $1000.”
Godziek also looks for companies that are implementing blockchain technology. He said that blockchain can be a solution for making transactions that do not require speed, such as core administrative work in the shipping industry and back office payments in the financial industry.
“Whenever there is no speed requirement, blockchain has its place. In the shipping industry, for instance, shipments of goods sent from Kenya to the Netherlands have to involve at least 30 different people who make 200 interactions. The blockchain concept would remove part of the inefficiency and improve security within the shipping ecosystem and streamline the transactions,” he added.
Bank of Singapore’s Johan Jooste also opted for investing in technology in a different way because he believes individual tech stocks have high valuations.
Jooste said he focuses on industries that benefit from applications of technology, rather than specific tech companies, such as Chinese internet giants.
He cited the healthcare industry as one example, as well as the financial industry, where he sees growth in robo-advisory services.
The technology sector has soared, leading to high valuations
