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An
industry (from
Latin industrius, "diligent, industrious") is the
manufacturing of a
good or
service within a category.
Although industry is a broad term for any kind of economic production, in
economics and
urban planning industry is a synonym for the
secondary sector, which is a type of economic activity involved in the
manufacturing of raw materials into goods and products.
There are four key industrial
economic sectors: the
primary sector, largely raw material extraction industries such as
mining and
farming; the
secondary sector, involving
refining,
construction, and
manufacturing; the
tertiary sector, which deals with services (such as
law and
medicine) and distribution of manufactured goods; and the
quaternary sector, a relatively new type of knowledge industry focusing on technological
research, design and development such as computer programming, and biochemistry. A fifth
quinary sector has been proposed encompassing nonprofit activities. The economy is also broadly separated into
public sector and
private sector, with industry generally categorized as private. Industries are also any business or manufacturing.
Industry in the sense of manufacturing became a key sector of production and labour in
European and
North American countries during the
Industrial Revolution, which upset previous
mercantile and
feudal economies through many successive rapid advances in technology, such as the
steel and
coal production. It is aided by technological advances, and has continued to develop into new types and sectors to this day. Industrial countries then assumed a
capitalist economic policy.
Railroads and
steam-powered ships began speedily establishing links with previously unreachable world markets, enabling private
companies to develop to then-unheard of size and
wealth. Following the
Industrial Revolution, perhaps a third of the world's economic output is derived from manufacturing industries—more than
agriculture's share.
Many developed countries (for example the UK, the U.S., and Canada) and many developing/semi-developed countries (People's Republic of China, India etc.) depend significantly on industry. Industries, the countries they reside in, and the economies of those countries are interlinked in a complex web of interdependence.
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History
Proto-industry
Early industries involved manufacturing goods for trade. In medieval Europe, industry became dominated by the guilds in cities and towns, who offered mutual support for the member's interests, and maintained standards of workmanship and ethical conduct.
Industrial development
The
industrial revolution led to the development of factories for large-scale production, with consequent changes in society. Originally the factories were steam-powered, but later transitioned to electricity once an electrical grid was developed. The mechanized
assembly line was introduced to assemble parts in a repeatable fashion, with individual workers performing specific steps during the process. This led to significant increases in efficiency, lowering the cost of the end process. Later
automation was increasingly used to replace human operators. This process has accelerated with the development of the
computer and the
robot.
Declining industries
Historically certain manufacturing industries have gone into a decline due to various economic factors, including the development of replacement technology or the loss of competitive advantage. An example of the former is the decline in
carriage manufacturing when the
automobile was mass-produced.
A recent trend has been the migration of prosperous, industrialized nations toward a
post-industrial society. This is
manifested by an increase in the
service sector at the expense of manufacturing, and the development of an information-based economy, the so-called
informational revolution. In a post-industrial society, manufacturing is relocated to more economically-favorable locations through a process of
offshoring.
Industrial technology
There are several branches of technology and engineering specialised for industrial application. This includes mathematical models, patented inventions and craft skills. See automation, industrial architecture, industrial design, industrial process, industrial arts and industrial applicability.
Industry and society
An
industrial society can be defined in many ways. Today, industry is an important part of most societies and nations. A government must have some kind of
industrial policy, regulating
industrial placement,
industrial pollution,
financing and
industrial labor.
Industrial labor
In an industrial society, industry employs a major part of the population. This occurs typically in the manufacturing sector. A labor union is an organization of workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions, forming a
cartel of labor. The trade union, through its leadership, bargains with the employer on behalf of union members (
rank and file members) and negotiates labor contracts with employers. This
movement first rose among industrial workers.
Industry and war
The industrial revolution changed warfare, with
mass-produced weaponry and supplies, machine-powered transportation,
mobilization, the
total war concept and
weapons of mass destruction. Early instances of
industrial warfare were the
Crimean War and the
American Civil War, but its full potential showed during the
world wars. See also
military-industrial complex,
arms industry,
military industry and
modern warfare.
Industry and the environment
Organization, management, and economics
Economic views of industry
Philosophers and economists have developed many different views of industry. See
physiocrats,
Adam Smith,
capitalism,
Marxism and
Colin Clark's
Sector model.
Industry sectors and classification
There are many other different kinds of industries, and often organized into different classes or sectors by a variety of
industrial classifications.
Industry classification systems used by the government commonly divide industry into three sectors: agriculture, manufacturing, and services. The
primary sector of industry is
agriculture,
mining and
raw material extraction. The
secondary sector of industry is
manufacturing. The
tertiary sector of industry is
service production. Sometimes, one talks about a
quaternary sector of industry, consisting of intellectual services such as
research and development (R&D).
Market-based classification systems such as the
Global Industry Classification Standard and the
Industry Classification Benchmark are used in
finance and
market research. These classification systems commonly divide industries according to similar functions and markets and identify businesses producing related products.
Industries can also be identified by product:
chemical industry,
petroleum industry,
automotive industry,
meatpacking industry,
hospitality industry,
food industry,
fish industry,
software industry,
paper industry,
entertainment industry,
semiconductor industry,
cultural industry,
poverty industryISIC
stands for
International Standard Industrial Classification of all
economic activities, the most complete and systematic industrial classification made by
United Nations Statistics Division.
ISIC Rev.4 is a standard classification of economic activities arranged so that entities can be classified according to the activity they carry out. The categories of ISIC at the most detailed level (classes) are delineated according to what is, in most countries, the customary combination of activities described in statistical units, and considers the relative importance of the activities included in these classes.
While ISIC Rev.4 continues to use criteria such as input, output and use of the products produced, more emphasis has been given to the character of the production process in defining and delineating ISIC classes.
See also
