Industry refers to the economic sector in which raw materials are converted into finished goods. This is done through various processes, which add value to the resources.
There are three basic types of industries. Each has its own characteristics. Understanding the differences among the industry types will allow you to effectively communicate with your clients and stay up to date on industry trends.
The primary industry is involved in the extraction and utilisation of natural resources. These industries include mining, fishing, forestry, and agriculture. Aside from obtaining these resources, these industries also provide jobs to people.
The secondary industry, on the other hand, involves the manufacture of products. Depending on the size of the industry, it can be categorized as light or heavy. Light industries produce small, low-cost products. They require fewer fixed assets and a smaller labour force.
Heavy industries are large-scale enterprises that produce a high volume of output. Their industrial organization is often complex. Because of their size and output, they generally need a large capital investment.
Small scale industries may also include non-standard items, such as personalized or design work. Unlike light industries, they may not have a skilled labour force.
Another type of industry is the quaternary industry, which is concerned with knowledge-based products, research and development, and information technology. It is an extension of the tertiary industry.
The third type of industry is the auxiliary industry. It includes industries that process, store, and recycle unrefined components of essential ventures.