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Heavy Industry

Definition

Heavy industry is industry that involves one or more characteristics such as large and heavy products; large and heavy equipment and facilities; or complex or numerous processes. Because of those factors, heavy industry involves higher capital intensity than light industry does, and it is also often more heavily cyclical in investment and employment.

What is a 'Heavy Industry'

Relates to a type of business that typically carries a high capital cost (capital-intensive), high barriers to entry and low transportability. The term "heavy" refers to the fact that the items produced by "heavy industry" used to be products such as iron, coal, oil, ships, etc. Today the reference also refers industries that cause disruption to the environment in the form of pollution, deforestation, etc.

Explaining 'Heavy Industry'

Industries that are typically considered heavy include:

1. Chemicals and plastics
2. Steel and oil refining, production
3. Mining
4. Industrial machinery
5. Mass transit (railways, airlines, shipbuilders)

Another trait of heavy industry is that it most often sells its goods to other industrial customers, rather than to the end consumer. Heavy industries tend to be a part of the supply chain of other products. As a result, their stocks will often rally at the beginning of an economic upturn and are often the first to benefit from an increase in demand.


Further Reading


Heavy Industry and Economic Development: The Chinese Planning Economy Revisited [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200804004.htm'>PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

Effect of Light-heavy Industry Structure Changes on Energy Consumption <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY200702004.htm' />Effect of Light-heavy Industry Structure Changes on Energy Consumption [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY200702004.htm'>PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

The Relation Between Light and Heavy Industry of China's Industrialization Since 1949The Relation Between Light and Heavy Industry of China's Industrialization Since 1949
en.cnki.com.cn [PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

The macro impacts of Korea's Heavy industry drive re‐evaluatedThe macro impacts of Korea's Heavy industry drive re‐evaluated
www.tandfonline.com [PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

How efficient is China's heavy industry? A perspective of input–output analysisHow efficient is China's heavy industry? A perspective of input–output analysis
www.tandfonline.com [PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

Heavy Industry, the State, and Economic Development in the Basque Region, 1876-1936Heavy Industry, the State, and Economic Development in the Basque Region, 1876-1936
www.jstor.org [PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

SomeIdeas about the Development of Heavy Industry in the Western Regions <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-MZYJ200304003.htm' />SomeIdeas about the Development of Heavy Industry in the Western Regions [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-MZYJ200304003.htm'>PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

Externalities and the Development of Heavy Industry <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-NKJJ200702004.htm' />Externalities and the Development of Heavy Industry [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-NKJJ200702004.htm'>PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …

The Reindustrialization of Heavy Industry Unequal to the Extensive Economic Growth and the Traditional Road to Industrialization——The Doubts About Some …The Reindustrialization of Heavy Industry Unequal to the Extensive Economic Growth and the Traditional Road to Industrialization——The Doubts About Some …
en.cnki.com.cn [PDF]
… CCER,Peking University,100871);Externalities and the Development of Heavy Industry[J];Nankai … Economics and Management,Shanghai University of Finance and Economics,Shanghai 200433 … of Chinese Farmers' Social Security System under the Dual Economic Structure[J …



Q&A About Heavy Industry


What does heavy industry relate to?

Heavy industry relates to a type of business that typically carries a high capital cost, high barriers to entry and low transportability.

Why do you think heavy industries tend not sell their goods directly to consumers?

Heavy industries tend not sell their goods directly because they most often sell its goods to other industrial customers rather than end consumer. Heavy industries tend be part supply chain other products so stocks will rally at beginning economic upturns often first benefit from increase demand.

What are examples of heavy industries?

Examples of heavy industries include chemicals and plastics, steel and oil refining, production, mining, industrial machinery and mass transit (railways, airlines, shipbuilders).

How is the term "heavy" used in reference to these businesses?

The term "heavy" refers to the fact that the items produced by "heavy industry" used to be products such as iron, coal, oil ships etc. Today the reference also refers industries that cause disruption to the environment in the form of pollution deforestation etc.