Industry (economics)

This article is about a categorized branch of economic activity. For large-scale production and its effects, see Manufacturing and Industrial society. For other uses, see Industry (disambiguation).

Economic branch that produces raw materials, goods or services

Cement factories, part of the manufacturing industry, produce product for the construction industry (also known as the building industry). This factory was in Malmö, Sweden. Burj al Arab as a symbol for the hospitality industry An image of the motor industry (automotive industry), a supplier to the transport industry. Economists may regard the manufacture of vehicles as a foundational industry and as a bellwether industry.[1]

In macroeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or services.[2] For example, one might refer to the wood industry or to the insurance industry.

When evaluating a single group or company, its dominant source of revenue is typically used by industry classifications to classify it within a specific industry.[3] For example the International Standard Industrial Classification (ISIC) – used directly or through derived classifications for the official statistics of most countries worldwide – classifies "statistical units" by the "economic activity in which they mainly engage". Industry is then defined as "set of statistical units that are classified into the same ISIC category".[4] However, a single business need not belong just to one industry, such as when a large business (often referred to as a conglomerate) diversifies across separate industries.

Other industry classification systems include the North American Industry Classification System (NAICS), which was developed through partnerships with North American countries such as the United States, Canada, and Mexico, in order to standardize the comparison of business activities in North America.[5] There is also the Global Industry Classification Standard (GICS), which is used to assign companies to specific economic sectors and industry groups.[6]

There are many industry classifications in the modern economy, which can be grouped into larger categories called economic sectors. Sectors are broader than industry classifications. For example, the retail trade sector contains industries such as clothing stores, shoe stores, and health and personal care stores. Companies are not limited to one sector or industry. They can reside in multiple sectors and industries.

Industries, though associated with specific products, processes, and consumer markets, can evolve over time. One distinct industry (for example, barrelmaking) may become limited to a tiny niche market and get mostly re-classified into another industry using new techniques. At the same time, entirely new industries may branch off from older ones once a significant market becomes apparent[citation needed] (as the semiconductor industry became distinguished from the wider electronics industry).

Industry classification is valuable for economic analysis because it leads to largely distinct categories with simple relationships. Through these classifications, economists are able to compare companies within the same industry to evaluate the attractiveness of that industry. Companies within the same industry can also have similar stock price movements due to their similarity and macroeconomic factors that affect all members of an industry.[7] However, more complex cases, such as otherwise different processes yielding similar products, require an element of standardization and prevent any one schema from fitting all possible uses.

## See also

[edit]

* Outline of industry
* List of countries by GDP sector composition

## References

[edit]

1. ^ Norton, Norton (26 March 2015) [2007]. "General Motors: Lost Dominance". In Tremblay, Victor J.; Tremblay, Carol Horton (eds.). Industry and Firm Studies (4 ed.). London: Routledge (published 2015). p. 271\. ISBN 9781317468028. Archived from the original on 10 October 2021. Retrieved 10 October 2021. "It was noteworthy that GM's dominance was in an extremely important industry. In simplest economic terms, it is a foundational industry. [...] The motor vehicle industry is a bellwether industry—its success has long been a signal of the state of the American economy."
2. ^ Compare: "Industry". Merriam-Webster Dictionary. 4 August 2020. Archived from the original on 6 January 2006. Retrieved 11 August 2020. "1 b: a distinct group of productive or profit-making enterprises [...]
c: a department or branch of a craft, art, business, or manufacture"
3. ^ "'Definition of Industry' Investopedia". 2003-11-20. Archived from the original on 2017-07-22. Retrieved 2015-05-22. "Individual companies are generally classified into an industry based on their largest sources of revenue. For example, while an automobile manufacturer might have a financing division that contributes 10% to the firm's overall revenues, the company would be classified in the automaker industry by most classification systems."
4. ^ International Standard Industrial Classification of All Economic Activities (ISIC), Rev.4 (PDF). New York: United Nations Publication. 2008. p. 3\. ISBN 978-92-1-161518-0. Archived (PDF) from the original on 2022-06-22. Retrieved 2022-06-21. "6\. The classification is used to classify statistical units, such as establishments or enterprises, according to the economic activity in which they mainly engage. At each level of ISIC, each statistical unit is assigned to one and only one ISIC code, as set out below. The set of statistical units that are classified into the same ISIC category is then often referred to as an industry […]"
5. ^ Kenton, Will. "North American Industry Classification System (NAICS)". Investopedia. Archived from the original on 2023-05-01. Retrieved 2023-05-01.
6. ^ Hayes, Adam. "What Is the Global Industry Classification Standard (GICS)?". Investopedia. Archived from the original on 2023-05-01. Retrieved 2023-05-01.
7. ^ Gorton, David. "Industry Definition in Business and Investing". Investopedia. Archived from the original on June 3, 2022. Retrieved May 30, 2022.

## External links

[edit]

Look up industry in Wiktionary, the free dictionary.

* Media related to Industries at Wikimedia Commons
* Quotations related to industry at Wikiquote

* v
* t
* e

Major industries

Natural sector

| Biotic|

| Agriculture|

* Arable farming
* Cereals
* Legumes
* Vegetables
* Fiber crops
* Oilseeds
* Sugar
* Tobacco
* Permanent crops
* Apples et al.
* Berries
* Citrus
* Stone fruits
* Tropical fruit
* Viticulture
* Cocoa
* Coffee
* Tea
* Nuts
* Olives
* Medicinal plants
* Spices
* Horticulture
* Flowers
* Seeds
* Animal husbandry
* Beef cattle
* Dairy farming
* Fur farming
* Horses
* Other livestock
* Pig
* Wool
* Poultry
* Beekeeping
* Cochineal
* Shellac
* Silk
* Hunting
* Fur trapping

|

Forestry|

* Silviculture
* Bamboo
* Logging
* Firewood
* Rattan
* Tree tapping
* Frankincense
* Gum arabic
* Gutta-percha
* Maple syrup
* Mastic
* Natural rubber
* Palm sugar, syrup, & wine
* Pine resin
* Wild mushrooms
* Fungiculture
* Truffles

Aquatic|

* Fishing
* Anchovies
* Herring
* Sardines
* Cod
* Haddock
* Pollock
* Mackerel
* Shark
* Swordfish
* Tuna
* Crabs
* Lobsters
* Sea urchins
* Squid
* Whaling
* Aquaculture
* Carp
* Catfish
* Tilapia
* Abalone
* Mussels
* Oysters
* Pearls
* Microalgae
* Seaweed
* Both
* Clams
* Sea cucumbers
* Scallops
* Salmon
* Shrimp

Geological|

* Fossil fuels
* Coal
* Peat
* Natural gas
* Oil shale
* Petroleum
* Tar sands
* Mining of ores
* Aluminum
* Copper
* Iron
* Gold
* Silver
* Palladium
* Platinum
* Lithium
* Rare-earth metals
* Uranium
* Other minerals
* Gemstones
* Phosphorus
* Potash
* Salt
* Sulfur
* Quarrying
* Gravel
* Sand
* Chalk
* Clay
* Gypsum
* Limestone
* Dimension stone
* Granite
* Marble

Industrial sector

| Manufacturing|

| Light industry|

* Food
* Animal feed
* Baking
* Canning
* Dairy products
* Flour
* Meat
* Prepared
* Preserved
* Sweets
* Vegetable oils
* Beverages
* Beer
* Bottled water
* Liquor
* Soft drinks
* Wine
* Textiles
* Carding
* Dyeing
* Prints
* Spinning
* Weaving
* Carpets
* Lace
* Linens
* Rope
* Clothing
* Accessories
* Dressmaking
* Furs
* Hatmaking
* Sewing
* Shoemaking
* Tailoring
* Printing
* Bookbinding
* Embossing
* Engraving
* Secure
* Typesetting
* Media reproduction
* Cassette tapes
* Phonographs
* Optical discs
* Metal fabrication
* Boilermaking
* Builders' & household hardware
* Cutlery
* Gunsmithing
* Locksmithing
* Machining
* Other smithing
* Powder metallurgy
* Prefabrication
* Surface finishing
* Other fabrication
* 3D printing
* Blow molding
* Drawing
* Extrusion
* Glassblowing
* Injection moulding
* Pottery
* Sintering
* Stonemasonry
* Woodworking
* Furniture
* Other goods
* Baggage
* Bicycles
* Jewellery
* Medical supplies
* Musical instruments
* Office supplies
* Outdoors & sports equipment
* Personal protective equipment
* Toys

|

Electrical
& optical|

* Electronics
* Components
* Circuit boards
* Semiconductors
* Computers
* Computer systems
* Parts & peripherals
* Blank storage media
* Communications equipment
* Mobile phones
* Network infrastructure
* Consumer electronics
* Televisions
* Video game consoles
* Instrumentation
* Clocks and watches
* GPS devices
* Scientific instruments
* Medical imaging systems
* Optical instruments
* Cameras
* Gun & spotting scopes
* Laser construction
* Lens grinding
* Microscopes
* Telescopes
* Electrical equipment
* Batteries
* Electrical & fiber optic cables
* Electric lighting
* Electric motors
* Home appliances
* Transformers

Chemicals|

* Coal & oil refining
* Bitumen
* Coke
* Diesel fuel
* Fuel oil
* Gasoline
* Jet fuel
* Kerosene
* Mineral oil
* Paraffin wax
* Petrochemicals
* Petroleum jelly
* Propane
* Synthetic oil
* Tar
* Commodity chemicals
* Fertilizers
* Industrial gases
* Pigments
* Pure elements
* Speciality chemicals
* Adhesives
* Agrochemicals
* Aroma compounds
* Cleaning products
* Cosmetics
* Explosives
* Fireworks
* Paints & inks
* Perfumes
* Soap
* Toiletries
* Fine chemicals
* Pharmaceuticals
* Antibiotics
* Blood products
* Chemical & hormonal contraceptives
* Generic drugs
* Illegal drugs
* Supplements
* Vaccines

Materials|

* Leather
* Liming & deliming
* Tanning
* Currying & oiling
* Wood
* Drying
* Sawmilling
* Engineered
* Lumber
* Composite
* Paper
* Sizing
* Cardboard
* Pulp
* Tissue
* Rubber
* Tires
* Vulcanized rubber
* Plastics
* Commodity
* Engineered
* Specialty
* Pellets
* Synthetic fibers
* Thermoplastics & thermosets
* Glass
* Borosilicate
* Fused quartz
* Soda-lime
* Float glass
* Glass fiber
* Glass wool & fiberglass
* Safety glass
* Ceramics
* Brick
* Earthenware
* Porcelain
* Refractory
* Tile
* Cement
* Mortar
* Plaster
* Ready-mix concrete
* Other mineral
* Abrasives
* Carbon fibers & advanced materials
* Mineral wool
* Synthetic gems
* Metal refining
* Iron
* Aluminum
* Copper
* Alloys
* Steel
* Formed metal
* Rolled
* Forged
* Cast metal

Heavy industry|

* Machinery
* Conveyors
* Heavy
* Hydraulic
* Machine tools
* Power & wind turbines
* Automobiles
* Other heavy vehicles
* Aerospace & space
* Rail vehicles
* Ships & offshore platforms
* Weapons

Utilities|

* Power
* Electric
* Gas distribution
* Renewable
* Water
* Sewage
* Waste management
* Collection
* Dumping
* Hazardous
* Recycling
* Remediation
* Telecom networks
* Cable TV
* Internet
* Mobile
* Satellite
* Telephone

Construction|

* Buildings
* Commercial
* Industrial
* Residential
* Civil engineering
* Bridges
* Railways
* Roads
* Tunnels
* Canals
* Dams
* Dredging
* Harbors
* Specialty trades
* Cabinetry
* Demolition
* Electrical wiring
* Elevators
* HVAC
* Painting and decorating
* Plumbing
* Site preparation

Service sector

| Sales|

* Retail
* Car dealership
* Consumer goods
* General store
* Grocery store
* Department store
* Mail order
* Online shopping
* Specialty store
* Wholesale
* Auction
* Brokerage
* Distribution

|

Transport
& Storage|

* Cargo
* Air cargo
* Intermodal
* Mail
* Moving company
* Rail
* Trucking
* Passenger transport
* Airlines
* Car rentals
* Passenger rail
* Ridesharing
* Taxis
* Warehousing
* Self storage

Hospitality|

* Foodservice
* Drink service
* Cafés
* Catering
* Fast food
* Food delivery
* Restaurants
* Teahouses
* Hotels

Asset management|

* Financial services
* Banking
* Credit
* Financial advice
* Holding company
* Money transfer
* Payment cards
* Risk management
* Securities
* Insurance
* Health
* Life
* Pension funding
* Property
* Reinsurance
* Real estate
* Brokerage
* Property management

Professional|

* Accounting
* Assurance
* Audit
* Bookkeeping
* Tax advice
* Architecture & engineering
* Inspection
* Surveying
* Physical, product, & system testing
* Design
* Fashion
* Interior
* Product
* Legal services
* Management
* Consulting
* Public relations
* Marketing
* Advertising

Healthcare|

* Medicine
* Dentist offices
* Hospitals
* Nursing
* Residential care
* Veterinary medicine

Entertainment
& leisure|

* Gambling
* Online
* Sport
* Venues
* Arcades
* Amusement parks
* Fairgrounds
* Nightclubs

Other|

* Administrative
* Customer service
* Leasing
* Renting
* Staffing
* Private investigation & security
* Maintenance
* Janitors
* Landscaping
* Repairs
* Personal services
* Beauty
* Dry cleaning
* Funeral
* Maid service
* Pet care
* Sex
* Poverty
* Travel
* Business travel
* Cruise lines
* Tourism

Information sector

| Publishing
& Mass media|

* Written
* Books
* Periodicals
* Software
* Audio-visual
* Film
* Music
* Video games
* Broadcasting
* News
* Radio
* Television
* Internet
* Hosting
* Social networks
* Streaming
* Websites

|

Education|

* Primary
* Secondary
* Tertiary
* Vocational school
* University
* Testing
* Tutoring

Other|

* Creative
* Language
* Research and development
* Basic research

Related

| Classification
standards|

* Production-based
* ANZSIC
* ISIC
* NACE
* NAICS
* SIC
* UKSIC
* Market-based
* GICS
* ICB
* TRBC

|

Inputs
& outputs|

* Externalities
* Community
* Crime
* Culture
* Pollution
* Well-being
* Funding
* Goods
* Commodities
* Final
* Intermediate
* Raw material
* Innovation
* Primary inputs
* Labor
* Natural resources
* Physical capital
* Services
* Technology

Organization|

* Centralization
* Cartel
* Conglomerate
* Horizontal integration
* Mergers and acquisitions
* Monopoly
* Monopsony
* Vertical integration
* Decentralization
* Enforced breakup
* Freelancing
* Homesteading
* Outsourcing
* Putting-out system
* Spinning-off
* Temporary work
* Ownership
* Cooperative
* Joint-stock company
* Nationalization
* Nonprofit organization
* Partnership
* Privatization
* Sole proprietorship
* State-owned enterprise

* Category
* Commons
* Outline

Portals:

* Business
* Technology
* Society
* Capitalism

Authority control databases

International|

* FAST

National|

* Germany
* Japan
* Czech Republic

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