Heavy Industry
posted on 06-06-2019
What it is:
Heavy industries often sell their products to other industries rather than to end users and consumers. In other words, they usually make products that are used to make other products. Accordingly, when a down economy begins to recover, heavy industry is often first to show signs of improvement. This makes the sector a leading economic indicator.
How it works/Example:
Oil, mining, shipbuilding, steel, chemicals, machinery manufacturing and similar industries are examples of heavy industry. They are very capital-intensive, meaning that they require a lot of machinery and equipment to produce. Often, they are criticized for their environmental impacts.
Why it matters:
Heavy industry refers to industries that produce "heavy" products.