4.1.3—Capital vs labour intensive

Capital-intensive production relies more on machinery and technology; labour-intensive production relies more on human effort. The choice affects fixed and variable costs, skills, scale, flexibility and quality control.

Capital may raise productivity and consistency but require finance and maintenance. Labour can adapt to variety and local skills but may face training, wage and capacity constraints.

A standardised beverage line may justify automation, while bespoke furniture may use skilled labour because variety and craft matter more than maximum volume.

“Capital intensive” does not mean labour-free, and automation is not automatically cheaper over the whole life cycle.