How Drones And Robots Will Impact Your Portfolio (Kiplinger)

| About: FedEx Corporation (FDX)

Summary

Where we are in the evolution of the drone industry.

The huge impact drones will have on delivery services.

The impact of regulations released in August of this year.

The wide array of industries and services that will utilize drones and robots.

How big the industry is expected to be in 2025 (and number of jobs will create).

drone stocks to watch Click to enlarge

I sit down with John Miley, Associate Editor with The Kiplinger Letter with a special focus on technology.

This is the final of three interviews with John. Each interview lasts around 20 minutes and focuses on 5G Technology, Augmented and Virtual Reality, and Drones and Robots, respectively.

For each podcast, John shares details about where each technology stands, where it appears to be heading, what companies will be most impacted, and what it will mean for the economy and consumers.

A quick overview of our third interview:

  • How the FAA has fallen behind regarding regulation.
  • The impact of regulations released in August of this year.
  • Big push to allow drones to 1) fly over people 2) fly without line of sight 3) fly at night.
  • Where we are in the evolution of the drone industry.
  • How big the industry is expected to be in 2025 (and the number of jobs it will create).
  • The huge impact drones will have on delivery services.
  • How privacy rules will impact drones.
  • The wide array of industries and services that will utilize drones.
  • The new roles that robots will play in manufacturing.
  • Robots to mow your lawn?
  • Much, much more on what the roll-out of both drones and robots will look like and who it will impact.

Companies mentioned: Amazon (NASDAQ:AMZN), FedEx (NYSE:FDX), UPS (NYSE:UPS), Verizon (NYSE:VZ), Ford (NYSE:F), GM (NYSE:GM), Toyota (NYSE:TM), Honda (NYSE:HMC), Tesla (NASDAQ:TSLA) and more.

I hope you enjoy this final of three interviews with John Miley from The Kiplinger Letter.

(Click the play button above to hear the podcast.)

You also can listen to the show on your smartphone by subscribing on iTunes.

Final Thought And Offer

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I hope you enjoy the interview as much as I did. I look forward to your thoughts and comments below.

- Brian

Interview Preview

Brian:

Hey, John, welcome back to the show.

John:

Thanks for having me.

Brian:

Oh man, absolutely. We had some great discussions about 5G. We've had some great discussions about augmented reality and virtual reality. Now, I'm excited to have some discussions about drones and robots. We're ... Drones, and you think about Amazon Deliver, and all the different regulatory conflicts that can come with this, but another one of those big trend industries. What can you tell us about where this industry is right now, and what could be on the way?

John:

Sure. One of things that's interesting about drones, is that for a long time, you had people complaining about the Federal Aviation Administration taking a long time to get these done, sort of technology racing ahead of where the regulators were. That's not uncommon, when I cover a merging tech, like [Air in DC 00:00:54]. But, 2012, I think is when the law was signed. I may be getting some of these dates wrong, but 2012 ... June 12, 20 ...

Wait, so August 2016, is when their new small drone rules took effect. That was recently.

Brian:

Yeah, just a couple months ago.

John:

Yep. In other words, you had to get a certificate if you were trying to run a drone commercial service. Beyond the consumer hobbyists, you had to go out and get a certification. People were getting certifications like crazy.

Brian:

Sure.

John:

But, now, the rules are in effect. You still have to go out and get a pilot's license, and there are still other rules that people aren't happy with. You still ...

Brian:

Like a legit, normal pilot's license, or like a special drone pilot's license?

John:

It's a good question. It's a special drones pilot's license, so you don't have to be a manned pilot, which I believe you had to be before.

Brian:

Wow.

John:

Except some people are concerned that the test is still too hard, and it's still, like taking a page from the manned aviation book, and it doesn't need to be that difficult. I think some of the things you're seeing pretty quickly, by the end of the year, they're looking into drones flying over people, which you can't do now. They're looking into figuring how to do that by the end of the year. That's ... When you talk about Amazon Delivery, you're going to have to go over people. You're going to have to go over buildings. Another thing would be, you don't have to have line-of-sight, they're still working on. That's a huge limitation, it's one people in the industry, I talked to.

Every drone, you have to have line-of-sight. You have to see it, which, obviously, it limits you a lot.

Brian:

Right.

John:

The other one would be flying at night. The other one would be, sort of the, how line-of-sight has to do with how far you can fly, too. Right now, I would say this is very early days in general with the drone industry.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.