Heavy industry involves capital or labor-intensive processes that produce heavy end products, such as automobiles and large structures. It is difficult to enter due to high startup costs and transportation challenges. Heavy industries sell to other industries and are heavily regulated due to their environmental impact.
Heavy industry is a general term that can be used to describe a variety of industrial concerns and operations. In general, the term describes industrial processes that are capital or labor intensive or produce heavy end products. It tends to be difficult to get into this type of industry because the startup costs are often quite high. It is also often difficult to transport basic materials or products involved in heavy industrial processes due to their mass and weight. In fact, the transportation of materials used in heavy industry is itself an important and important heavy industry.
Heavy industry is often defined relative to light industry, although both have relatively loose definitions that are often based on each other. Light industry is often used to describe industrial concerns and operations that involve less capital, a lighter environmental impact, and less labor required than heavy industry. In many cases, light industry is much more service oriented and the products developed by light industry are often easier to transport. The manufacturing of clothing, furniture, and consumer electronics falls into the category of light industry, while the manufacturing of automobiles, large structures, some military equipment, such as tanks, and bombs, is generally considered heavy industry.
Heavy industries rarely sell their products directly to consumers; they tend to sell to industrial customers. They mainly focus on assembling the products, not promoting or selling the final products. As a result, when an economic recovery occurs, heavy industry inventory values are among the first to increase as their customers pay them to increase their production levels. The economic performance of heavy industries often depends on the costs of acquiring and transporting the raw materials they also need for production.
The large scale and large amount of capital involved in heavy industry tends to result in a significant amount of government regulation. This regulation may be partially related to the effect heavy industries have on the environment. They often produce a significant amount of pollution that can affect the air and water for miles around. Many heavy industries have to operate around the clock; this often results in a great deal of noise and light which can disturb people who live and work nearby. Governments usually address these concerns by applying special zoning laws to heavy industries.
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