Small-Sized Industries – What Is an Industry?

Industry

Small-Sized Industries – What Is an Industry?

In macroeconomics, a industry is a productive branch of any economy which produces a closely related group of goods, materials, or Services. For instance, one may refer to the real estate industry or the steel industry. In microeconomics (also known as micro-ecology), on the other hand, an industry is an isolated and self-sustaining economic unit that is focused on a defined set of environmental requirements. For instance, the grassland diet is an environmentally sustainable agricultural model practiced by farmers who live in close proximity to nature and the natural biodiversity. Economists define industries according to three major categories: primary production, secondary production, and demand process oriented.

Primary production refers to those industries that directly provide raw materials and energy required to create finished products. Some examples include oil refineries, steel plants, mining, chemical processing, metal production, pulp and paper mills, electricity generation, packaging, and agriculture. Secondary production includes those industries that indirectly provide raw materials and energy through factories, including the manufacture of automobiles, trucks, shoes, and other goods. The third type, demand process oriented, refers to the indirect process by which goods are bought and sold. Major industrial regions include the Northeast, Southwest, and Pacific northwest.

In the last two decades, globalization and rapid economic development within developed countries such as the United States, Canada, and Western Europe has led to a relative restructuring of most industries. These changes have affected all industries, including manufacturing, retailing, services, and financial activities. In addition, technological advancements and globalization have contributed to increased competitiveness and decreased opportunities for new entrants. These changes have also affected consumer preferences in both the retail and purchasing industries, with more preference for less-processed goods and services and increased purchases of customized and exclusive brands.