By Al Root
Artificial intelligence is the angel and demon fueling most stock trades these days, whether boosting companies tied to hyperscalers' hyperspending on AI data centers or tanking software companies' shares on fears of permanent irrelevance.
Whichever way the stock market winds blow, AI is a deflationary force that will help U.S. manufacturing add capacity and jobs.
"Justifiable attention has been paid to [AI's] impact on the white-collar workforce," wrote Oppenheimer analysts led by Colin Rusch in a Thursday report. His firm sees a more nuanced transformation of the workforce, with more demand for blue-collar jobs, enabled by higher levels of AI-infused automation.
"As such, we see a multi-year supportive backdrop across our Industrial Innovation coverage universe where we see the picks and shovels of this next wave of the Industrial Revolution; physical AI, power, and the machines that make the machines that power, build, and feed the world," added Rusch.
There are about 13 million manufacturing jobs in the U.S., according to Federal Reserve data, less than 10% of the total workforce, and down from roughly 20 million in the 1980s when manufacturing employment was closer to 20% of the total workforce.
Manufacturing declines coincide with the rise of technology and the outsourcing of production to low-wage countries, most notably China. That process has caught the attention of just about everyone lately, notably the Trump administration, which is using the cudgel of tariffs and the scalpel of co-investment to bring production back to America.
The production that comes back, however, will need higher levels of automation to compete globally. One key area Oppenheimer says to focus on is companies that can embed digital technology into physical objects, including lidar makers Aeva Technologies and Ouster, as well as sensor and software maker Trimble.
Companies that can use technology to "upskill/reskill" workers are another area of focus. Those include Deere, Caterpillar, and Rockwell Automation, all of which can use technology to make operating heavy machinery and industrial processes easier without requiring years of training.
There will also be new AI jobs related to "physical AI," such as robo-taxis and robots, benefiting self-driving technology providers Aurora Innovation and Mobileye, and robot makers Symbotic and Serve Robotics.
AI will also help companies that are essentially undisruptible, such as food additive maker International Flavors & Fragrances and seed maker Corteva. People will always need to eat.
Those are a dozen names. There are others. Whichever stocks investors look at, they should start thinking about how AI will enable higher levels of higher technology manufacturing in America.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 12, 2026 12:50 ET (16:50 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments