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Industry Types and Classification

Industrial activity developed from the 18th century onwards, with the industrial Revolutionstarted in Europe. Over time, the development of this economic practice became a basic need and also a symbol of development in all countries, which seek, in every way, to streamline their production factory. To better understand how industries work and are structured, we can classify them into different types, based on the function, the technology employed, the application of resources or the assets produced.

Industries by function:

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Germ industries: are those that generate the appearance of other industries, mainly because they need the materials supplied. The main example is petrochemicals.

Cutting-edge industries: these are industries with a high technological standard that dominate the industrial activity of a given location, such as the automobile and aerospace sectors.

Industries according to technology:

Traditional industries: develops with little technology and obsolete or old production systems. It is often structured around family groups.

Dynamic industries: are those that employ more advanced technological material and operate on a large scale. They use a lot of investment capital, but usually employ little labor force and, eventually generate structural unemployment, due to the replacement of workers by machinery.

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Industries according to the resources applied

Capital-intensive industries: are those that employ a greater amount of investments in working capital and also in equipment.

Labor-intensive industries: are those that prioritize their investments in the workforce.

Industries according to the goods produced

This is the official classification used by the Brazilian Institute of Geography and Statistics (IBGE) and predominates in economic analyzes of Brazilian production.

Intermediate goods industries: are industries that manufacture products that are not final goods, but that are used as raw material for other factories. They are also called heavy industries. This sector encompasses steel, petrochemicals and the production of other materials, such as cellulose, concrete, among many others.

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Capital goods industries: are industries that produce equipment for other industries, such as work tools, simple and advanced machinery, in addition to the physical infrastructure of companies in general.

Consumer goods industries: also called light industries, are those that transform raw materials into goods for the consumer in general. They are divided into durable goods (electronics, furniture, vehicles, etc.), semi-durable (clothing, accessories, etc.) and non-durable (food, beverages, medicine and others) industries.

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