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Manufacturing's the New Tech

Industrial companies – not those in tech – are the leaders in innovation right now, Cramer said. Sure, gamers across the U.S. are probably marveling at the latest version of Take-Two’s Grand Theft Auto, but we’re talking about products the world actually needs.

Take Harsco, for instance. This company’s mining-services division turns its client’s waste into a high-quality cement additive. No, it’s not another pixel for your digi-cam, but the technology is a big step forward for the businesses involved – and this planet.

More than that, though, manufacturing plays like Harsco (and Eaton and Parker Hannifin) have better organic growth than traditional tech stocks, great overseas exposure, and their stocks are cheaper on a price-to-earnings-multiple basis.

Harsco’s business model works by making other great manufacturers successful. By providing everything from scaffolding to onsite recycling to better railroad tracks, clients are able to execute at a much higher level.

And while the American economy lags the rest of the world, Harsco’s three divisions – mill, access, and minerals and rail services – earn 70% of sales from outside the U.S.

Again, the stock’s too cheap, Cramer said, trading at 15 times earnings with a 15% long-term growth rate. So consider buying Harsco. It could be the best technology company you've never heard of.

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  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

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