INDUSTRY

Basics of Industry. Industry Sector.

GERMANY
FINLAND
JAPAN
California, USA
Switzerland
New York, USA
PHILIPPINES
 Netherlands (headquarters)
United Kingdom (registered office)
INDUSTRY: production of
an economic
good or service within
an economy.
INDUSTRIAL SECTOR
 INDUSTRIAL SECTOR: includes
those economic sectors that create a
finished, tangible product: production
and construction.

Involves the transformation of raw or

intermediate materials into goods e.g.
manufacturing steel into cars, or textiles into
clothing. (A builder and a dressmaker would
be workers in the secondary sector.)
FUNCTION: This sector generally takes the output of
the primary sector and manufactures finished goods. These
products are then either exported or sold to domestic
consumers and to places where they are suitable for use by
other businesses. This sector is often divided into light
industry and heavy industry. Many of these industries
consume large amounts of energy and require factories and
machinery to convert the raw materials into goods and
products. They also produce waste materials and waste
heat that may pose environmental problems or cause
pollution.
 LIGHT INDUSTRY
=usually less capital intensive than heavy industry, and is
more consumer-oriented than business-oriented (i.e., most
light industry products are produced for end users rather
than as intermediates for use by other industries).

One economic definition states that light industry is a

"manufacturing activity that uses moderate amounts of
partially processed materials to produce items of relatively
high value per unit weight".
Examples of light industries include the manufacturing
of clothes, shoes, furniture, consumer electronics and home
appliances. Conversely, ship building would fall
under heavy industry.
 Characteristics
-Light industries require only a small amount of raw materials, area and
power.
-The value of the goods are low and they are easy to transport.
-The number of products is high.
-While light industry typically causes relatively little pollution, particularly
when compared to heavy industries, some light industry can cause
significant pollution or risk of contamination.

EXAMPLE: Electronics manufacturing, itself often a light industry, can

create potentially harmful levels of lead or chemical wastes in soil due to
improper handling of solder and waste products (such as cleaning and
degreasing agents used in manufacture).
 HEAVY INDUSTRY
=Heavy industry does not have a single fixed meaning as
compared to light industry. It can mean production of
products which are either heavy in weight or in the
processes leading to their production. In general, it is a
popular term used within the name of many Japanese
and Korean firms, meaning 'construction' for big projects.
Example projects include the construction of large buildings,
chemical plants, the H-IIA rocket and also includes the
production of construction equipment such as cranes and
bulldozers. Alternatively, heavy industry projects can be
generalized as more capital intensive or as requiring greater
or more advanced resources, facilities or management.
Many East Asian companies rely on heavy industry as
part of their overall economy. Amongst Japanese
and Korean firms with "heavy industry" in their names,
many are also manufacturers of aerospace products
and defense armaments, along with being defense
contractors to their respective countries' governments
such as Japan's Fuji Heavy Industries and
Korea's Hyundai Rotem, a joint project of Hyundai
Heavy Industries and Daewoo Heavy Industries.
Heavy industry is also sometimes a special
designation in local zoning laws.
Different classifications of Industry
1. Chemical industry comprises the companies
that produce industrial chemicals. Central to the
modern world economy, it converts raw
materials (oil, natural gas, air, water, metals,
and minerals) into more than 70,000 different
products.

Polymers and plastics,

especially polyethylene, polypropylene, polyvin
yl chloride, polyethylene,
terephthalate, polystyrene and polycarbonate c
omprise about 80% of the industry’s output
worldwide.
2. Petroleum industry includes the global processes
of exploration, extraction, refining, transporting (often
by oil tankers and pipelines), and
marketing petroleum products. The largest volume
products of the industry are fuel oil and gasoline (petrol).
Petroleum (oil) is also the raw material for many chemical
products, including pharmaceuticals, solvents, fertilizers,
pesticides, and plastics. The industry is usually divided into
three major
components: upstream,midstream and downstream.
Midstream operations are usually included in the
downstream category.
3. Automotive industry is a term that covers a wide range of
companies and organizations involved in the design,
development, manufacture, marketing, and selling of motor
vehicles, towed vehicles, motorcycles and mopeds. It is one
of the world's most important economic sectors by revenue.
The term automotive industry usually does not include
industries dedicated to the maintenance of automobiles
following delivery to the end-user, such as repair
shops and motor fuel filling stations.
The term automotive was created from Greek autos (self),
and Latin motivus (of motion) to represent any form of self-
powered vehicle.
4. Consumer electronics (abbreviated CE)
are electronic equipment intended for everyday use, most
often in entertainment, communications and office
productivity.

Main products include radio receivers, television sets, MP3

players, video recorders, DVD players, digital
cameras, camcorders, personal computers,video game
consoles, telephones and mobile phones. Increasingly these
products have become based on digital technologies, and
have largely merged with the computer industry in what is
increasingly referred to as
the consumerization of information technology such as those
invented by Apple Inc. and MIT Media Lab.
5. Meat packing industry handles
the slaughtering, processing, packaging, and distribution of
animals such as cattle, pigs, sheep and other livestock.
The industry is primarily focused on producing meat for
human consumption, but it also yields a variety of by-
products including hides, feathers, dried blood, and, through
the process of rendering, fat such
as tallow and protein meals such as meat & bone meal.
In the U.S. and some other countries, the facility where the
meat packing is done is called a meat packing plant;
in New Zealand, where most of the products are exported, it
is called a freezing works. An abattoir is a place where
animals are slaughtered for food.
6. Hospitality industry is a broad category of fields
within the service industry that
includes lodging, restaurants, event planning, theme
parks, transportation, cruise line, and additional fields
within the tourism industry. The hospitality industry is a
several billion dollar industry that mostly depends on
the availability of leisure time and disposable income.
A hospitality unit such as a restaurant, hotel, or even
an amusement park consists of multiple groups such
as facility maintenance, direct operations
(servers, housekeepers, porters, kitchen
workers, bartenders, etc.), management, marketing,
and human resources.
7. The food industry is a complex, global
collective of diverse businesses that
supply much of the food
energy consumed by the world
population. Only subsistence farmers,
those who survive on what they grow,
can be considered outside of the scope
of the modern food industry.
• The food industry includes:
• Regulation: local, regional, national and international rules and
regulations for food production and sale, including food
quality and food safety, and industry lobbying activities
• Education: academic, vocational, consultancy
• Research and development: food technology
• Financial services insurance, credit
• Manufacturing: agrichemicals, seed, farm machinery and supplies,
agricultural construction, etc.
• Agriculture: raising of crops and livestock, seafood
• Food processing: preparation of fresh products for market,
manufacture of prepared food products
• Marketing: promotion of generic products (e.g. milk board), new
products, public opinion, through advertising, packaging, public
relations, et
• Wholesale and distribution: warehousing, transportation, logistics
8. The fishing industry includes any industry or activity
concerned with taking, culturing, processing, preserving,
storing, transporting, marketing or selling fish or fish
products. It is defined by the FAO as
including recreational, subsistence and commercial
fishing, and the harvesting, processing,
and marketing sectors. The commercial activity is aimed
at the delivery of fish and other seafood products for
human consumption or as input factors in other industrial
processes. Directly or indirectly, the livelihood of over 500
million people in developing countries depends on
fisheries and aquaculture.
9. The software industry includes businesses
for development, maintenance and publicat
ion of software that are using different
business models, mainly either
"license/maintenance based" (on-premises)
or "Cloud based" (such as SaaS, PaaS, IaaS,
MaaS, AaaS, etc.). The industry also includes
software services, such
as training, documentation, and consulting.
10. Pulp and paper industry comprises companies
that use wood as raw material and
produce pulp, paper, board and other cellulose-
based products.
The industry is dominated by North
American (United States and Canada), northern
European (Finland, Sweden, and North-West
Russia) and East Asian countries (such as East
Siberian Russia, China, Japan, and South
Korea). Australasia and Brazil also have significant
pulp and paper enterprises. The United States had
been the world's leading producer of paper until it
was overtaken by China in 2009.
11. Show business, sometimes shortened to show
biz or showbiz (since ca. 1945), is a vernacular term for all
aspects of entertainment, especially light entertainment. The
word applies to all aspects of the entertainment industry
from the business side (including managers, agents,
producers and distributors) to the creative element
(including artists, performers, writers, musicians and
technicians). The term was in common usage throughout
the 20th century but the first known use in print dates from
1850. At that time and for several decades it always
included an initial the. By the latter part of the century it had
acquired a slightly arcane quality associated with the era of
variety, but the term is still in active use.
12. Semiconductor industry is the aggregate
collection of companies engaged in
the design and fabrication of semiconduct
or devices. It formed around 1960, once
the fabrication of semiconductors became
a viable business. It has since grown to be
the $249 billion dollar industry it is today.
13. According to international organizations
such as UNESCO and the General
Agreement on Tariffs and
Trade (GATT), cultural industries (sometimes
also known as "creative industries") combine
the creation, production,
and distribution of goods and services that
are cultural in nature and usually protected
by intellectual property rights.
14. The terms poverty industry or poverty business refer to a
wide range of money-making activities that attract a large
portion of their business from the poor. Businesses in the
poverty industry often include payday
loan centers, pawnshops, rent-to-own centers, casinos,
liquor stores, tobacco stores, and credit card companies.
Illegal ventures such as loan sharking or drug-dealing or
prostitution might also be included. The poverty industry
makes roughly US$33 billion a year in the United States. In
2010, elected American federal officials received more than
$1.5 million in campaign contributions from poverty industry
donors.