Economy

What is industry? »Its definition and meaning

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The concept of industry is used basically in three interpretations. On the one hand, the term is known as the operations used to obtain, modify and transfer raw materials. From another point of view, the word is used to refer to physical facilities, the site that is intended for the execution of the aforementioned operations and finally, to qualify the set of this archetype of facilities that contain some characteristic belonging to this branch.

What is the industry

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It is the fundamental economic activity of the secondary sector, whose objective is the transformation of raw material into already manufactured or semi-finished articles. In addition to materials, it requires mechanisms and human resources regularly structured in companies for its development due to its job distinction. One of the related professions is industrial design, which is responsible for planning the production of capital and consumer goods.

Currently there are various types by virtue of the entire foundational design that circumscribe it in sectoral precincts according to the merchandise manufactured. By way of example is the food industry which is responsible for the manufacture of food products such as canned food, sausages, etc.

Industry history

To overcome physical decay, man was able to resort to different means that undoubtedly made his tasks possible. Over the years, he used rudimentary utensils that were improved and a subsequent technical improvement in old machines and utensils operated, in this way, his growing needs gave rise to the creation of mechanisms and tools. These already represented a substantial period in industrial evolution, so that man was slowly moving away from the slavery that manual labor entailed.

Industrial Revolution

It is the movement that begins in a society when its economy ceases to be based on agriculture and commerce to fall into the hands of manufacturing. Its evolution lasted almost two centuries and its origin dates back to England around the 18th century, giving way to Western Europe and beginning with France and the Netherlands, to later advance in countries such as Germany, Spain, etc.

During this cycle there was a series of economic and technological transformations in which the transition from an agricultural economy to an urban and industrialized economy was observed.

This revolution is made up of two characteristic periods. The first was carried out around the years 1750 and 1840 and the second was carried out between 1880 and 1914, managing to be examined by means of specific changes that took place in societies.

Initially, a demographic transformation was found with the transfer of rural populations to cities and international migration, and then there was economic change with mass production and the emergence of large companies, which evidently contributed to guaranteeing capitalism.

The first was in the period that originated in the United Kingdom and, despite this, it was a process that caused alterations in all countries based on economic liberalism.

One of the main reasons why it started in this nation is probably because it was an open society willing to change, which had iron mines, with which it was able to develop the necessary mechanisms to start it.

One of the things that spurred the industrial revolution was the automation of textile activities and manufacturing in iron production.

The creation of the first steam device by the industrial designer James Watt was another of the definitive alterations, since it was possible to facilitate the transfer of goods. The second period was the inference of the first industrial revolution and the leading countries were the United States, Belgium, France, Russia and Germany, it was also characterized by laying the economic foundations that were to direct the course of societies from the nineteenth century in ahead.

This stage established capitalism as the predominant doctrine of the commercial relations of the whole world and caused technological advances for the improvement of certain machinery.

Among its causes are the increase in agricultural production and for it to grow, it was vitally important to have sufficient agricultural resources so that the populations could be fed, on the other hand, there are abundant labor, capital to face new projects, the expansion of trade, technical innovation, the entrepreneurial mentality and the policy that favors the production of all these changes.

The consequences of it can be studied from two perspectives, the social and the economic.

The social consequence has as a result a genuine demographic revolution, in this stage the cities were increasing all over the world, as well as their size, it was also calculated that in a century there were many migratory movements between America and Europe with approximately 50 million people.

The economic consequence brought capitalism with it, making banks perfect, private properties strengthened, and nations became increasingly wealthy.

Industry types

It can be classified according to its production process, the volume of raw materials that have been used, the capacity, the development and the type of product. Each raw material used is the one that begins the various types that exist and globally, it can be classified into four large groups.

According to its production process

  • Basic: it is the one that acts to start the production procedures, modifying the raw material in a semi-finished production that is usually used by others, with this it is meant that they are the basis for the development of different industries.

    A clear example of this is the steel industry, which deals with transforming iron into steel so that it can be reused by other industries in the manufacture of machinery or daily consumption funds.

  • Capital goods: these are also considered a type of steel industry due to their dedication to transforming semi-finished products from basic manufacturing into lucrative elements for other companies.

    In the same way, they include the manufacture of infrastructure and economic or metallurgical goods in order to equip companies with substantial goods that will help in the development of other economic activities.

  • Construction: they are in charge of developing goods such as buildings, roads, airports and other components that are used in other construction processes, such as ceramics and glass.
  • Metallurgical companies: they manufacture products suitable for consumption but not for the common population but for those who are dedicated to the productivity of goods that society will use later, to have a clearer idea you can think about the cranes that are used for reconstruction of buildings and assembly lines that are used in factories.
  • Consumer goods: responsible for manufacturing those products that are assigned for direct consumption by the entire population and for this reason it is considered to be an industry built almost at the culmination of manufacturing.

    As an example, there are foods such as dairy and meats, tools such as hammers, clothing such as pants, textiles such as tablecloths, electronics such as industrial ovens and sound equipment, publishers such as notebooks and books., necessities such as medicines, etc.

According to the production quantity

Among the types that use raw materials in the production process according to their tonnage, are:

  • Heavy: This is the kind of manufacturing that usually works with huge amounts of raw materials that are later transformed into semi-finished products. It is practically in charge of manufacturing the machines, the inputs and the possible solutions that other industries may require in order to function. The heavy steel companies are basic and also capital goods.
  • It is distinguished by requiring a large investment to operate, which suggests that the movement of its capital is generally massive. Furthermore, the procedures generated by it are often complex and involve many threads. On the other hand, it is the type that causes the greatest impact on nature and, for this reason, is the target of environmentalists.

    Some of the heavy industrial products are energy (which implies nuclear and natural energy), shipbuilding, steel, mining, chemicals, oil, among others.

  • Semi light: it works with semi-finished goods in the course of its production and the raw material used in this classification is in diminished proportions compared to heavy. This archetype is dedicated to the automotive section and the manufacture of machines and other equipment.

    Some examples of the results achieved in this are household appliances (such as the domestic stove, refrigerator, and extractor hood) and some machinery (such as the backhoe, paver, and compactor).

  • Light: the amount of raw material used is very low, for that reason they do not require mechanisms or large facilities to carry out the production processes. This is the type of manufacturing that can make final consumer goods, that is, products purchased first-hand by the user. It is located in places close to the destination market, because the goods are usually considered as having the maximum added value and also, they are less polluting than heavy ones.
  • It manufactures perishable products, for example, food (flour, preserves and wine), textiles (fabrics and clothing), household appliances (televisions, blenders), automotive, etc.

    The programs that are used to start lightly are characteristic of underdeveloped regions and have an apparent virtue that comes from the external economy that is given by the high probability of supplanting eventual imports, but, despite this, these programs have restrictions on the supply of foreign exchange to support the importation of capital goods essential for these production processes.

According to its development

  • Tip: they are located in full expansion and growth of their productivity, using the most advanced technologies. They are distinguished by having a highly qualified staff and by having research machines that require a constant capital investment. The leading companies are in developed countries and are located near large university institutions, a good example of this type are the technology companies of Silicon Valley.
  • Mature: they have a maximum development. It is generally considered mature when its growth tax decreases and when its growth measures are little or no.

    In these cases, when there is a stagnation in productivity levels, the probability that the company will grow is diminished. This stagnation is usually related to increased competition or the inappropriate use of technology. They belong to the heavy industry such as shipyards, metallurgies, among others.

According to its size

In this classification are:

  • Small: it is distinguished by having a number of employees less than fifty. This time it does not require much investment and it is practically an independent community whose annual demand does not exceed a defined limit. In small companies there is a great investment of work due to the complexity of the employees' tasks.

    The coordination of personnel and material and financial goods need a good organization, on the other hand, it is characterized by using direct labor and that in the same way it can use mechanized resources.

  • Medium: it is also part of this category and in this type the number of employees varies between fifty and a thousand, therefore, their investments are larger than those of the small ones.

    It is said that the economic unit that develops its ability to compete based on the progress of its procedures and its ordering is known as the median. This normally has levels of complexity with regard to the coordination and control of productions and therefore trained personnel are attached to assume this type of functions.

  • Large industry: employees usually exceed a thousand and require very large capital investments and operations at very high productivity capacity. They are responsible for the manufacture of products that cannot be made by the medium-sized company and in this production cannot be stopped because it can generate large losses, in addition, it is usually the type of manufacturing that has the greatest impact on the environment.

In addition to the aforementioned classification, there is also a category according to the type of product. As a primary factor, food is explained and often uses agricultural products to convert them into food. For these goods to reach the final consumer, it is imperative that they go through a procedure in which they are transformed, prepared, preserved and packaged.

It is mainly interested in agriculture and livestock, on the other hand, its progress has been increased thanks to technology and has made it possible to increase the numbers of foods that are added in the intake.

In addition to the food industry, there is also the pharmaceutical industry, this is defined as that which discovers, manufactures, prepares and markets chemical products for purely medical purposes for the prevention and control of diseases, on the other hand, there is the iron and steel company that transforms iron ore to obtain various types of iron or its mergers.

Likewise, the metallurgical company is located and it is responsible for modifying metals other than iron, while the chemistry extracts and processes natural and / or synthetic raw materials, using solid, liquid and gaseous fuels.

The petrochemical industry is the one that obtains products from hydrocarbons; Textile is the one that includes the manufacture of certain garments and other varieties of articles; The automaker is in charge of the production of automobiles, paying special attention to their design, development and manufacture, to their packaging and marketing; and the real estate, which is responsible for the purchase or sale of real estate, which may be assets such as apartments, hotels and even land.

To know some terms, it is being pointed out as a glossary that the industrial property law is capable of providing industrial security that protects the interests of the founders of images, symbols, drawings and brands.

On the other hand, if you want to show an example, it can be taken as a reference to the Querétaro industrial park, an ideal ecological space for hiking and mountain biking, whose maintenance is important due to the presence of species that are in danger of extinction and that they are cared for in that space once they are rescued.

What is industrialization

This refers to the production of goods in high proportions, and in the same way, it refers to the process in which a society goes from an agrarian economy to an industrialized economy.

This is triggered in a specific sector and is based on the development of mechanisms, methods and labor processes in order to increase production in less time, as well as economic development that seeks to increase the benefits and consequences of the Gross Domestic Product. Thanks to industrialization, a new economic, social, political, cultural and geographical order was born.

The development of modern industrialization is due to the industrial revolution, the phenomenon that managed to mark the transfer from agricultural society to industrial society, taking place between the end of the 18th century and the beginning of the 19th century.

During many years of existence, a large number of human populations managed to survive based on a survival economy and their productions did not generate surpluses with which they could be traded. The manufacture of certain goods used to be done in the houses with simple tools.

Over the years the machinery began to be more useful and allowed the increase in volume along with the variety of products, beginning to be mass produced and deploying the primitive factories as they are known today. In this way, labor centers of coal, iron and steel mines, textile factories, among others, were opened.

Manufacturing time and shipping values ​​were decreased and the magnitude of surpluses allowed the start of large-scale trade, helping the economic development of industrialized countries.

Not all countries managed to industrialize in the same century, in fact, many of the Asian countries developed it in the 20th century. On the other hand, despite the fact that industrialization brought improvements from an economic perspective, it also brought with it some problems such as the concentration of populations and the pollution of the environment.

In some of the countries that were previously heavily industrialized, the opposite is occurring today; even deindustrialization in Great Britain is declining.

Among the characteristics of this are the mechanization of manufacturing procedures and work, as this indicates that objects that used to be made by hand today can be made through the use of machinery that reduces effort and production time.

On the other hand, the procedures are concentrated in factories, since the industrial work is carried out in a closed place where the necessary mechanisms can be found to carry out the elaboration of the goods.

Another peculiarity of industrialization is the advancement of agrarian society to industrial society, because this changed the character of rural societies to industrial societies. On the other hand, it is found that the expansion of markets for goods and services stimulated the economic growth of various nations and in the same way, certain impulses were witnessed that developed in sectors through paths that differed from each other, modifying habits and locations. geographical areas that were already established.

Industrial zone

It is where there are a number of factories in order to and / or manufacture products. These areas are generally cut off from the populations due to the noise and pollution they produce. They have a series of benefits: they bring with them sources of employment for the locals, helping them to improve themselves at work. Given that workers increase their income, it has social implications, since large cities are formed around them.

The place where it is established must have all the services to function: water, electricity, toilet, transportation, access roads, among other facilities, as well as availability of spaces for possible extensions.

There are different methods for selecting sites, the most common being:

  • A short list of potential sites
  • Description of each site in terms of ecological and sociocultural weaknesses
  • Analysis of the capacity of each site to assimilate impacts in terms of a common set of criteria for the prevention of the degradation of natural and socio-cultural resources
  • Elimination of sites with serious environmental limitations
  • Description of the measures necessary to mitigate impacts and comply with environmental regulations, including consideration of technical and institutional feasibility, reliability, and long-term cost
  • Consultation with affected communities
  • Classification of the alternatives and selection of the proposed site.

Competitive industry

It is based on the capacity of the industrial sector to plan, produce and sell products, whose characteristics manage to form a much more interesting package than that of similar goods offered by the competition and where the market will make the decision.

Industry represents one of the most important pillars of the economy of any country, since it contributes in a valuable way to economic development, job creation and technological innovation. However, due to increased competition from new markets, they must adapt to changes and take advantage of global market opportunities.

Its main objective is to innovate and recover its market. However, it is necessary for the country to have government policies that provide the right conditions that allow the freedom it needs to have competitive prices.

The factors that define the level of competitiveness are internal and external. Internal factors are immediately subject to the organization and over which it has control; while external factors are those that are beyond the scope of the organization.

The internal factors are grouped into three areas:

  • Quality: it has to do with the satisfaction patterns that the customer obtains from a product or service.
  • Efficiency: from an economic approach, efficiency means having higher productivity at lower cost. It is well known that to be efficient it is necessary to have the proper use of management techniques and technologies.
  • Innovation: refers to the creation of new products that satisfy new needs. Good innovation requires a lot of research and development. For the industrial sector, this will become a reality through strategic agreements between them, government and universities. A good will be competitive if it is novel, has an accessible price and has an acceptable quality.

The external factors that intervene directly or indirectly in competitiveness are: foreign trade policy, legal framework, monetary and inflation policy, tax incentives, economic investment, among others.

Industrial Security

It is a necessary and mandatory field in any company in which the processes by which the risks are minimized in it are constantly studied, applied and renewed. They must have safety and industrial hygiene measures, to comply with a series of standards and conditions that they must provide to their workers in order to provide them with industrial safety equipment.

For example, in a company where chemical products are made, the employee must be protected against radiation, any leakage of a toxic liquid or inhalations of polluting gases. Every chemical company must provide its workers with the maximum protections to avoid an accident, this being the function of industrial safety.

A very important aspect of it is the use of statistics, which allows you to warn in which sectors accidents usually occur in order to exercise extreme caution. Technological innovation, machinery replacement, worker training and regular controls are some of the activities linked to it. However, this is relative, since despite the fact that a company offers the highest quality standards, it is impossible to determine when an accident will happen, and it is also unlikely to know if the safety that that company has will be adequate to restrict the effects of the damage caused, so it will depend on the magnitude of the loss.

Its use in environmental matters is also noteworthy, since it not only protects and defends the integrity of the employee, but also advocates the environmental conditions of the space in which the factory or company is located. Industrial safety is responsible for implementing filters to minimize the emission of polluting gases or products that may be toxic to the flora and fauna near the structure.

Study industrial engineering

The industrial engineering profession teaches various teachings about optimization when applying the resources of organizations or companies, so that the results obtained are not only desirable but also the most profitable in each area.

This professional designs and applies services for the execution of the different tasks that must be faced, being able to form part of an industrial safety team. It should be noted that it is not the same as industrial design, since this is the design of the products themselves.

The industrial engineering degree has a duration of five years and includes different subjects that will guide and incorporate in the student the necessary terms to carry out the design, the calculations and also the administrative, economic and human resources management that the trained person must obtain at the time of exercising their profession.

For this reason, many of the educational entities incorporate disciplines related to financial management within their study plan, so that the graduates of this career have the skills to overcome difficulties of various kinds.

On the other hand, studying this career can enter topics that are related to environmental management, which will undoubtedly provide the professional with knowledge of different areas that will allow them to carry out a more complete job, being able to use them in future work related to the environment environment and with the most efficient management of natural resources.

This profession also offers the student the possibility of obtaining knowledge and practices related to their mechanical matters, being useful for the activities that they will have once they are professional and within an organization.

The future of the Industry in the world

If people imagined what the factories of the future would be like, they would probably envision more agile and versatile machines that respond correctly to the demands of their customers. These would surely have more advanced technology and industrial maintenance, to be able to produce products that are of higher quality and that almost do not contaminate the environment, in this way awareness would be created and the ecosystem that will surround the area would be the one in the factory, thinking about the processes through which it can be subjected in order to recycle and obtain a better environment.

With the passing of the years, the product will be able to adapt to the client and will be able to provide a too useful service, in this way it will avoid the acquisition of continuous equipment that as soon as it loses its good condition and is transformed into polluting agents or better known as "scrap" and at the same time they will personalize various products to satisfy users, making the brand more attractive. These products will be used strategically and will achieve to deepen Industry 4.0 that is still trying to revolutionize what is the industrial technical world.

Frequently Asked Questions about Industry

What is the importance of the industry?

It is based on the fact that it generates a significant number of jobs, being a fundamental engine of the economies of the countries; in addition, they generate consumer goods.

What is called the industrial revolution?

It was the process in which the economy migrated from the support of agriculture to the production of mass goods with the automation of machines.

What is industrial engineering about?

It is about the administration of human and economic resources of the industries, designing processes for the optimization of production.

What does the agricultural industry do?

It is the one that uses automated processes for the processing and subsequent commercialization of local products such as food, among these are legumes, fruits and vegetables.

What is the manufacturing industry?

It is the one in charge of the process of raw materials for the production of products for final consumption.