Company Size and Labor Share Considerations
Arc Invest's analysis reveals that company size and labor share significantly influence the potential impact of humanoid robots:
Large firms: These companies have more specialized roles and automated processes, resulting in higher productivity. They typically have lower labor costs as a share of revenue but pay higher wages.
Small firms: With less specialization, small companies have a higher proportion of automatable tasks not yet automated. They could benefit disproportionately from generalized humanoid robot solutions.
The report notes that 40% of U.S. manufacturing employees work in small firms (fewer than 500 employees), suggesting a significant opportunity for humanoid robot adoption in this sector.