There's all sorts of costs associated with the latter approach, you need to expend capital on equipment, methods to monitor progress, these workers need supervi

There's all sorts of costs associated with the latter approach, you need to expend capital on equipment, methods to monitor progress, these workers need supervision, etc. I guess that explains why many firms that take this approach are so chaotic at the line worker level. In fact a tech oriented PE firm that buys these businesses out, makes technology investments to improve productivity or eliminate easily automatable labor and then use the savings to scale the business further. (Which would result in net more employment.) I predict we'll see more of these in the coming years.