Micro Industry Sectors – Which Ones Are Facing Major Challenges?
In microeconomics, an industry is any division of a market that produces a similar group of goods, raw materials, or services in close proximity. For instance, one could look to the banking industry or the manufacturing industry. When we say micro, it is very small in comparison to the macro. It therefore makes sense to look at the different industries within this micro-industry and determine the problems they are experiencing as compared to an entire industry.
One good example is the car manufacturing industry. A recent survey showed that the auto parts manufacturing sector was feeling the pinch due to lower sales of certain car models. The other auto-related industry sectors, like the oil refining and pipeline sector also saw declines in sales. This means that each of these car manufacturing industry sectors is facing a problem of reduced demand. The manufacturing industry, therefore, needs to look at the demand in each of these sectors and determine if there is going to be enough work to keep these companies in business.
Another important aspect of analyzing any specific industry within a micro-industry is looking at how well the industry functions. For instance, does it have enough manufacturing jobs? Is the level of overall unemployment less than 10%? These questions are important to consider as they will give insight into the health of the economy as a whole. By examining industry categories from a macroeconomic perspective, a company can get a better idea of what the state of its economy is doing. This will allow a company to develop plans for growth and improve its operations.