Is the Cake Limitless or Not?

Robotized factories (e.g. Dell), eastern constant improvements (e.g. Toyota) or the endless chase after lower labour costs (e.g. shifts to China), generally — any sort of optimization, at the end of the day, results in even thinner margins and an even fiercer competition. What’s the end result? Is it altogether a side effect of a cake that doesn’t increase in size as fast as the global entrepreneurial appetite? Is the cake really limitless? Or perhaps it has a relative limit (i.e. resulting from competition or slower increase in consumption)? If so — what will production look like, say, in 10 years time?