Wall Street’s worried about rising prices. I’m watching the companies developing technologies that could help bring costs down.

Imagine you’re running a manufacturing company with 500 employees. Your labor costs are rising, electricity bills keep climbing, and shipping products across the country is getting more expensive. You have two choices: keep raising prices and hope customers stick around, or find a way to produce more while spending less.

Now imagine installing intelligent robots, automating your production lines, and using artificial intelligence to eliminate costly inefficiencies. Suddenly, you’re producing more products with fewer mistakes, less waste, and lower costs per unit.

That’s not some futuristic scenario. It’s already happening in factories around the world. And after Wednesday’s inflation report, I believe the economic incentive to embrace these technologies just got stronger.

While Wall Street worries about inflation, I’m looking at the companies developing technologies that could help fight it.

Every Price Hike Is a Sales Pitch

Wednesday morning, investors received another unwelcome reminder that inflation isn’t going away quietly. September’s Consumer Price Index (CPI) rose 3.7% from a year earlier, above Wall Street’s 3.6% expectation. Gasoline prices jumped 9.1% during the month, helping push overall inflation higher.

The immediate reaction was predictable. Investors worried about higher interest rates, the Federal Reserve’s next move, and what persistent inflation could mean for stock valuations. Those concerns are legitimate. Higher borrowing costs can slow economic growth and make it more expensive for businesses to expand.

But there’s another side to this story that isn’t getting nearly enough attention. Inflation creates an enormous financial incentive for companies to innovate.

When labor, transportation, and energy become more expensive, businesses start searching for ways to operate more efficiently. And increasingly, the answer involves automation, robotics, and AI.

This is where two of my favorite investment themes intersect: the AI revolution and the revitalization of American manufacturing.

From Room-Sized to Pocket-Sized

Think about what happened to the cost of computing over the past several decades. Computers that once cost millions of dollars and filled entire rooms have been replaced by smartphones with dramatically more processing power. Technology didn’t just improve the product. It fundamentally changed the economics.

We’re approaching a similar transformation in manufacturing and transportation.

Industrial robots can perform repetitive tasks with extraordinary consistency. AI-powered systems can identify defects before products leave the factory. Advanced software can optimize shipping routes, reduce energy consumption, and minimize wasted materials.

And here’s the important distinction: These technologies don’t necessarily eliminate jobs. They change the work people do while allowing businesses to produce more with the resources they have.

That productivity improvement can help companies protect profit margins without constantly raising prices. It won’t eliminate inflation overnight, but over time, widespread productivity gains can help reduce the cost of producing goods and delivering services.

And that creates a multiyear investment opportunity.

Robots, Rails, and Control Rooms

One company I’m watching is Teradyne (TER). Most investors know Teradyne for its semiconductor testing equipment. But the company also owns Universal Robots, a leader in collaborative robots designed to work alongside humans.

These robots can handle repetitive manufacturing tasks, improve consistency, and help businesses operate more efficiently. As companies look for ways to offset rising operating expenses, automation could become increasingly attractive.

Another interesting name is Wabtec (WAB). Wabtec develops equipment and technologies used throughout the railroad industry, including locomotive systems and digital solutions designed to improve fuel efficiency and operations.

Transportation is a major expense for businesses, and even relatively small improvements in fuel consumption or operating efficiency can translate into meaningful savings across large rail networks.

Then there’s Rockwell Automation (ROK), one of the world’s established leaders in industrial automation. Rockwell provides the software, control systems, and equipment that help factories operate more efficiently.

As American companies invest in reshoring and modernizing domestic manufacturing, Rockwell could benefit from demand for smarter production facilities.

The Opportunity Hidden in the Headlines

I’ve spent nearly 25 years looking for investment opportunities created by major economic and technological shifts. And one lesson I’ve learned is that some of the biggest winners emerge when companies develop solutions to problems everyone else is worried about.

Inflation is a real problem. It affects everything from your grocery bill to your mortgage payment, and persistent price increases can create serious challenges for the economy.

But those same pressures are encouraging businesses to embrace technologies that could fundamentally change how goods are manufactured and transported.

While Wall Street debates the next interest-rate decision, I’m watching the companies making the economy more productive.

Because sometimes the biggest investment opportunity isn’t the problem making headlines. It’s the technology that helps solve it.