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Economic/Technology

Rising Labor Costs Driving Automation Adoption

Timeframe: 5-10 year structural shift already underway

What's Changing

Labor costs increasing dramatically (waiters from $15 to $25/hour in NYC) while technology costs decreasing, creating new automation opportunities.

Driving Forces

Immigration restrictions limiting labor supply

Minimum wage increases in major cities

Post-COVID labor market dynamics

Declining costs of robotics and AI technology

Winners

  • Automation technology companies
  • Businesses that adopt automation early
  • Capital equipment manufacturers
  • Remote/offshore service providers

Losers

  • Traditional labor-intensive businesses
  • Workers in automatable roles
  • Companies slow to adopt technology
  • High-cost geographic markets

How to Position Yourself

1

Invest in automation technology companies

2

Build businesses around labor replacement

3

Target industries with acute labor shortages

4

Focus on ROI-positive automation use cases

Early Signals to Watch

Wage growth rates in service industriesRestaurant automation adoptionRemote work technology adoptionImmigration policy changes

Example Implementation

“Restaurants investing in automated french fry cooking systems when cooks demand $30/hour, achieving 18-month payback periods.”