THE 20 MOST IMPORTANT TYPES OF INDUSTRIES - CULTURE VOCABULARY - 2025

The types of industries can be classified according to their production process, tonnage of raw materials used, size, development and type of product. Industry can be defined as economic activities that aim to use and transform natural resources that are, on the one hand, raw materials, and on the other, energy sources to produce two types of products.

The first are semi-finished products, which are used to make other products; the latter are manufactured products, already prepared for final consumption.

The industry itself belongs to the secondary sector, and although it includes many other activities such as construction and mining, it is considered the activity that has the most weight within the sector.

To carry out industrial production, several factors are needed, such as natural resources, that is, the materials that are transformed, along with labor and capital.

Each of these raw materials used is what gives rise to the different types of industries that exist. In general, the industry can be classified into five large groups.

The first classification is the one made according to the position in which the industry is in the production process. The second is carried out according to the tonnage of the raw materials used. The third, according to their degree of development. The fourth, according to its size. And the fifth, depending on the type of product they produce.

Types of industry according to their production process

Source: Angeloleithold

As its name suggests, base industries are those that act to initiate the production process and do so by transforming raw materials into semi-finished products that other industries use. In other words, they are the basis for the development of other industries.

An example of this can be the steel industry, which is responsible for transforming iron into steel so that it can be used by other industries in the manufacture of capital or consumer goods.

Capital goods industries

Source: Lufkin Industries

This is the type of steel industry that is dedicated to transforming the semi-finished products of the base industries into productive equipment for other industries. This includes the manufacture of infrastructure and economic goods to equip companies with electronic equipment, machinery, among others.

Consumer goods industries

Source: CINEL

Consumer goods industries are those that are dedicated to the manufacture of products that are intended for direct consumption by the population.

Therefore, they are the industries that are constituted in the final stage of the manufacturing process. A clear example of this type of industry are companies that are part of the food or pharmaceutical industry.

Industries according to the tonnage of raw materials used

Heavy industry

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This is the type of manufacturing that works with large amounts of raw materials, which they turn into semi-finished products. Basically it is the industry that is responsible for producing the inputs, machines and solutions that other industries need to function. Heavy iron and steel industries are usually basic and capital goods industries.

Heavy industry is characterized by requiring a large investment to operate. Which means that their capital movement is, in general, massive. In addition, the processes generated by this industry are really complex, which is why they involve many threads.

On the other hand, this is the type of industry that has the greatest impact on the environment. For this reason they are often the target of environmentalists.

Semi-light industry

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These industries work with semi-finished products in their production processes. Which means that the amount of raw material they use is much less than in heavy industry.

Semi-light industries are usually those that are dedicated to the automotive sector, to the manufacture of machinery and other equipment. Therefore, they are dedicated to the production of capital goods.

Light industry

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In light manufacturing, the amount of raw material used is very low. Therefore, they do not need large facilities or machinery to carry out the production process.

This is the type of industry that manufactures goods for use and final consumption, that is, those that are purchased directly by the user. This industry is usually located in places close to the destination market, since the goods are considered as having high added value. On the other hand, they tend to be less polluting than heavy ones.

According to their degree of development

Top industries

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This is the way to classify industries according to their technical level. The leading industries are those that are in full expansion and growth of their production and are usually those that use the most advanced technologies.

They are also characterized by having highly specialized and highly trained professionals among their staff. And also, they usually have research teams that need the constant investment of a lot of capital.

Top companies are generally located in developed countries and are close to large universities. A great example of these types of industries is Silicon Valley tech companies.

Mature industries

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Mature industries are those that have reached their maximum development. That is, an industry can be considered mature when its growth rate begins to slow down and when its growth levels are low or even zero.

In these cases, when production levels are stagnant, the chances of the company growing again are reduced. This stagnation often has to do with increased competition and the use of outdated or incorrect technology.

Mature industries are usually those that belong to the heavy sector such as metallurgy, shipyards, among others.

According to its size

Small industry

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This classification is characterized by the fact that the number of employees does not exceed 50. In these cases, not much investment is needed. It is basically an independent entity whose annual sale does not exceed a certain limit.

In small industries there is a greater division of labor due to the complexity of the functions of the employees.

Furthermore, in terms of staff coordination and material, technical and financial resources, greater organization is needed. Also, it is characterized because it uses direct labor. Although that does not mean that it does not make use of mechanized resources.

Medium industry

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In this type of industry the number of employees is between 50 and 1000 employees. In this case the investment must be greater than in small industries.

The medium industry is an economic unit that can develop its competitiveness based on the improvement of its processes and its organization.

This industry must have a level of complexity when it comes to controlling and coordinating production. Therefore, it must incorporate personnel who can assume this type of functions.

The advantage of this industry is that it can make individualized products, something that large companies cannot do. In addition, they are of great help to the latter for the performance of services and operations.

Big industry

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In these industries the number of employees exceeds 1000. This means that not only do they need a very large capital investment, but they also need to operate at very high production capacities.

These industries are the ones in charge of manufacturing the products that medium-sized companies cannot make.

In large industry it is not possible to stop production without generating great losses. In addition, it is the type of manufacturing that most impacts the environment.

The industries that belong to this category are mostly heavy ones; These are the ones that usually cause more damage to the atmosphere due to their high production of toxic waste, which not only pollutes the air but also the water.

According to the type of product

Food

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This industry uses agricultural and fishing products to turn them into food. In order for these products to reach the end consumer, they must go through a process of transformation, preparation, conservation and packaging.

Among these, the canning industries, prepared meals, pastries, among others, stand out.

Pharmaceutical

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This is the sector that is dedicated to the discovery, manufacture, preparation and commercialization of chemical products for medical purposes, either for the treatment and / or prevention of diseases. It is worth noting that a large part of the production of this industry is associated with vaccines.

The pharmaceutical steel industry is made up of numerous organizations, both public and private. Furthermore, most of the companies in this branch are international. Which means that they have a presence in many countries through subsidiaries.

Steelworks

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This industry, also called iron metallurgy, is dedicated to transforming iron ore through a special metallurgical treatment to obtain different types of iron or its alloys.

The steel industry is based on the purification of iron using smelting or reduction processes. The mineral is subjected to high temperatures in the presence of fuels, which are generally coal and coke.

Metallurgical

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The metallurgical industry is dedicated to transforming metals other than iron. It works with copper and aluminum, among others. The latter involves quite complex production processes, so its added value is high.

This type of industry requires high investments, especially because they must occupy a lot of industrial land.

Chemistry

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It is an industry that is dedicated to the extraction and processing of natural and synthetic raw materials. It uses a wide variety of resources such as liquid, solid and gaseous fuels, as well as lime, pyrite, salts, animal and vegetable products.

The production process in this industry can be very complex and therefore its added value is usually higher. Some of the products that are produced in this industry are fertilizers, acids, paints, cosmetics, preservatives, explosives, among others.

Petrochemistry

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It is a branch of the chemical industry that is responsible for obtaining certain products from hydrocarbons (oil and natural gas).

There are around a thousand derivatives, among which are fertilizers, plastic, lubricants, solvent, synthetic fibers, among others. To obtain these products, the raw material has been subjected to complex processes.

On the other hand, petrochemical plants are often located close to oil and gas fields in order to have easier access. In this industry, specialized labor is needed such as engineers, chemists, technicians, economists, etc.

Textile

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In this industry a series of activities are grouped that include spinning, weaving and the manufacture of clothing and other articles. That is, it is in charge of producing fibers, whether natural or synthetic, for the creation of new pieces.

In the past the term textile was only used for woven fabrics. However, as the industry evolved, the concept expanded and now includes even fabrics formed by chemical processes or mechanical bonding.

This industry is one of the most important in the world economy, since thanks to the massive consumption of the products it generates, it is possible to create a large number of direct and indirect jobs.

Automotive

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This is the industry that takes care of all the processes that involve the production of automobiles, from their design, development, manufacture to their assembly, marketing and sale.

Automotive metallurgy is one of the great generators of employment, not only because it requires direct labor but also because of the influence it exerts in all sectors that are related to it, such as auto parts.

Real estate

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The real estate industry refers to all activities related to the purchase, sale or rent of real estate or real estate. These assets can be houses already built or that are under construction.

But they can also be buildings, hotels, apartments and even land, among others. That is to say, all those fixed assets that cannot be converted into cash, but that over time generate income. The mediators in the real estate industry are the so-called real estate agencies.

References

1. Apaza, J. (undated). Definition and characteristics of heavy industry. Recovered from es.scribd.com.
2. Geography and History 3rd ESO (no date). Industrial activities. Recovered from recursostic.educacion.es.
3. Industrial activities (2014). Definitions. Recovered from iesgaherrera.com.
4. Tait, K. (undated). Encyclopedia of Health and Safety at Work. Pharmaceutical industry. Recovered from insht.es.