Heavy Industry
Candlefocus EditorHeavy industry is cyclical, meaning that its output and profitability are affected by economic cycles and stages of business. As the economy begins to recover, investment is made into larger, more expensive and longer-term undertakings and activities, giving a boost to this form of business. Examples of heavy industry include automobile manufacturing, steel production, shipbuilding, and aerospace.
Heavy industry involves many trade skills, such as welding and machining. The industry is also responsible for the production of major infrastructure products, such as bridges and dams, as well as the manufacture of durable consumer goods, such as refrigerators and washing machines. Heavy industry also includes those that produce energy, such as nuclear, oil and gas, and electricity, as well as those that produce weapons.
In addition to the employment opportunities that come with heavy industry, the sector has a vital role in the economy, as it produces necessary consumer goods, infrastructure, energy, and weapons.
Heavy industry also provides a boost to small enterprises, as they help create an environment of investment, technological advancement and innovation in the local and national economies. The sector also endows investors and entrepreneurs with a greater understanding of complex engineering and production processes.
The current status of heavy industry has been affected adversely by weak global demand and an unstable economic environment, leading to reduced investments and increased cost of production. Various governments have implemented measures to counter this, such as investment incentives and subsidies to promote investments in the sector, to help ensure its future viability.