Heavy Industry

Heavy industry refers to businesses that invest heavily in producing massive items, equipment, and facilities for industrial consumers. It mainly works on large-scale, long-term projects, which helps to advance infrastructure, encourage cyclical investment, and create jobs. However, it may result in high entry barriers and limited transportability.

A heavy industry entails manufacturing processes and supplies to larger entities, such as businesses and governments. Their existence is necessary for a more stable economy. Examples are mining, shipping, chemicals, transportation, construction, aerospace, defense, steel, oil, gas, etc.

• The heavy industry definition refers to any sector using higher capital costs, advanced infrastructure, heavy equipment, and several complex procedures to make huge goods and facilities on a massive scale.
• It aids in advancing infrastructure, encouraging cyclical investment, and creating jobs. It may, however, result in significant entry hurdles and transportation limitations.
• It does not provide end-user services but rather to other industries or governments. As a result, they contribute significantly to a country's infrastructure and economic development.
• Industries like mining, shipbuilding, chemicals, transportation, energy, construction, aerospace, defense, steel, petroleum, etc., may damage the environment and be far from crowded areas.

Heavy industries often provide services directly to other industries or governments, not end-users. These, thus, make a considerable contribution to a country's infrastructure and economic development. The term ‘heavy’ signifies the involvement of large machinery and factories in producing large goods, equipment, and facilities. These demand a significant amount of capital to run the operations, pay specialized workers, and produce a high output volume.

Heavy industries employ most of the population, including engineers, low-skilled workers, management professionals, etc. These also present cyclical investment opportunities for more expensive and long-term undertakings.

These industries first appeared during the 20th century's Industrial Revolution, which coincided with the second American Revolution. Skyscrapers, huge dams, and massive wind turbines were built post-World War II. Steel, locomotives, defense supplies, machine tools, and mining equipment manufacturing also sprouted up. In addition, it resulted in breakthroughs in areas like space exploration and renewable energy generation.

Although heavy industries are crucial for an economy worldwide, they severely influence the environment. These are infamous for causing pollution, deforestation, greenhouse gas emissions, climate change, oil spills, and exposing local populations and workers to health concerns.

Let us consider the following heavy industry examples to understand its definition and importance:

#1 - Space

The space industry is responsible for manufacturing large space vehicles and equipment, for example, rockets and artificial satellites.

#2 - Shipbuilding

This industry manufactures commercial and naval ships, other related machinery, and floating vessels, for example, torpedoes.

#3 - Energy

This industry manufactures equipment essential for generating power and renewable energy sources, including wind turbines, solar panels, etc.

#4 - Construction

This industry is responsible for infrastructure development, such as public and private buildings, flyovers, dams, etc.

#5 - Transportation

This industry deals manufacturing of trains, aircraft, buses, and other public transport.

Other examples of heavy industries include mining, chemicals, materials, machines, tools, equipment, etc.

The light industry is responsible for small-scale manufacturing. It is concerned with production processes that do not require much capital or space. Rather than intermediaries or other sectors, these industries produce goods for end-users. Also, these industries are allowed to operate near residential areas, industrial parks, public places, etc. Examples include food units, paper making, electronic home appliances, etc.

On the other hand, heavy industries manufacture massive equipment, tools, and machinery. The production processes in such industries can cause environmental dangers, such as greenhouse gas emissions, pollution, etc. As a result, such businesses are typically located well away from residential areas. Heavy industry companies sell their products to other industries. Heavy industry is a particular category in local zoning rules enacted by authorities that control land use and construction.

This has been a guide to Heavy Industry and its definition. Here we discuss how heavy industry works, along with examples and differences from the light industry. You may also learn more about financing from the following articles -

• Cottage Industry
• Cyclical Industry
• Growth Industry