To enlighten investors on the impact of these breakthroughs and the opportunities they should create, we began publishing Big Ideas in 2017. This annual research report seeks to highlight

Increased Automation And Productivity 
Can Provide Many Economic Benefits
0%
10%
20%
30%
40%
50%
60%
70%
0
20
40
60
80
100
120
140
160
180
200
Labor Share of US Manufacturing
US Manufacturing Robot Density per 10,000 Employees
US Manufacturing Robot Density vs 
US Manufacturing Labor Share 
(1991-2015)

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•
Note: Chart time period is 1993-2015 the forecast is for 2025. 
Labor share is employee wages as a percent of income.
Forecasts are inherently limited and cannot be relied upon. 
Source: ARK Investment Management LLC, 2020 based on data sourced from: EU KLEMS Database September 2017 release, July 2018 revision, Yardeni.
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Automation
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According to ARK’s research, for every 
percentage drop in labor share in the 
industrial and agricultural sectors, 
operating margins increased 30 basis 
points and 280 basis points, respectively. 
We would not be surprised to see a 
similar relationship in all industries.
•
If labor share were to fall 15%, in line 
with manufacturing, operating margins 
could double to more than 20%.
Historically, When Labor Share Has 
Declined, Operating Margins 
Have Increased
0%
5%
10%
15%
20%
25%
40%
45%
50%
55%
60%
65%
Operating Margin
Labor Share
Labor Share
: 
S&P Operating Profit Margins vs. 
All Industries Labor Share
Historic Aggregate Data
Forecast

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[1] Unpaid family workers include unpaid family members and self-employed famers.
Source: ARK Investment Management LLC, 2020 based on data sourced from: Economic Research Service United States Department of Agriculture 
https://www.ers.usda.gov/topics/farm-economy/farm-labor/#size
.
63
Automation
•
82% of the roughly 7 million people who lost jobs 
in agriculture between 1950 and 2000 were unpaid 
family workers.
1
•
The loss of jobs in one industry, even a major 
industry, does not suggest that total employment 
will decline.
•
The washing machine monetized unpaid time 
spent cleaning clothes as washing machine 
manufacturers and laundromats took hold. 
•
As food services automate, they will continue 
to transform food prep, cleanup, and grocery 
shopping into market activities including food 
delivery.
•
Automated products and services are less 
expensive than their alternatives.