Industry
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Industry refers to the production of an economic good or service within an economy.[1]
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[edit] Industrial sectors
Farming- The secondary sector,involving refinery 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 R&D 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. Industries can be classified on the basis of raw materials, size and ownership.
- Raw Materials: Industries may be agriculture based, Marine based, Mineral based, Forest based.
- Size: It refers to the amount of capital invested, number of people employed and the volume of production.
- Ownership: Industries can be classified into private sector, state owned or public sector, joint sector and co-operative sector
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 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.
Industry is divided into four sectors. They are:
| Sector | Definition |
|---|---|
| Primary | This involves the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit. |
| Secondary | This group is involved in the processing products from primary industries. This includes all factories—those that refine metals, produce furniture, or pack farm products such as meat. |
| Tertiary | This group is involved in the provision of services. They include teachers, managers and other service providers. |
| Quaternary | This group is involved in the research of science and technology. They include scientists. |
As a country develops people move away from the primary sector to secondary and then to tertiary.
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[which?] 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, electronic industry, meatpacking industry, hospitality industry, food industry, fish industry, software industry, paper industry, entertainment industry, semiconductor industry, cultural industry, poverty industry
- labor-intensive industry - capital-intensive industry
- light industry - heavy industry
[edit] Proto-industry
The term "proto-industry" refers to a form of manufacturing production and organization, and the process of protoindustrialization refers to a historical process and to an economic theory of development. Historians have generally accepted the central features of proto-industrialization as an economic process with deep social ramifications that began around 1650 (there is much more disagreement about when it ended), but they have been more skeptical about the theory as an explanation for the emergence of the industrial revolution.
A System of Rural Manufacturing
As a historical process, proto-industrialization refers to an intensification of rural manufacturing that occurred in various parts of Europe after 1650, above all producing textiles for national and international markets. In other words, quickening demand beyond the immediate vicinity of production, and even overseas, was the fundamental stimulus for expanded production. Production was organized in cottage workshops, and the primary unit of production was the household. Merchants distributed raw materials like wool or flax (for making linen) to peasants. Men and women would spin the raw material into yarn, and merchants would then put the yarn out to weavers working looms in their cottages to produce cloth. Merchants would then distribute the cloth to other cottage workers for bleaching and dyeing and collect it a final time for sale to a wholesaler in a near or distant city. The peasant workers were paid piece rates.
This type of rural manufacturing, sometimes called "the putting-out system," existed at least from the sixteenth century, notably in the Netherlands, as merchants sought cheaper labor than what was available in towns, where cloth workers were well organized to defend their economic interests. Initially peasants engaged in cottage manufacturing to supplement their income from farming, spinning, and weaving in their homes in the intervals between planting and harvesting. As demand for textiles grew after 1650 and above all in the eighteenth century, however, merchants sought more and more cottage workers to produce more and more goods. Proto-industrialization took hold often, although not exclusively, in areas with poor soil, hilly terrain, or concentration of land in a few hands. It reached an unprecedented scale in the eighteenth century, even dominating particular regions in the Netherlands, northern France, the German Rhineland, Belgium, and above all England. Proto-industrialization had important economic ramifications. It strengthened marketing networks as the volume of textiles multiplied and contributed to the accumulation of profit to entrepreneurial merchants who in turn sought further outlets for reinvestment. Moreover, because workers were paid cash for their products, they became increasingly integrated into a cash- and wage-based manufacturing economy. Each of these factors further prepared Europe to make the leap into industrialization.
Contributing to the expansion of proto-industrialization in the eighteenth century were population growth and an increased and better supply of food. More rural workers became available, and expanding commercial farming provided markets with food for them. Proto-industry employed far more people than the traditional cottage industry had, and in some areas peasants gave up farming entirely and became dependent upon "wages" paid by urban merchants. In some rural regions, a majority of the population worked for urban merchants. In England, as commercial and capitalistic farmers purchased and enclosed more and more fields, the population of propertyless rural workers grew more dramatically than anywhere else in Europe.
As proto-industrialization advanced, more peasants were driven into poverty, and landless peasants were more inclined to work for low wages than urban artisans. Merchants, driven by increasing competition in the market and the capitalistic motive to maximize profit by minimizing costs, exploited this source of cheap, unorganized labor. Some historians refer to this process as proletarianization, referring to the transformation of once independent farmer-manufacturers into a class of propertyless, impoverished wageworkers totally reliant upon the merchant-capitalist—and the vagaries of demand in distant markets—for their livelihood. Such developments had deep social, even demographic, consequences. Recent empirical studies show that populations in proto-industrial regions looked very different from those in other rural areas or towns. Marriage ages dropped lower in proto-industrial communities than anywhere else, and fertility rates rose the most and the fastest. Because of the impoverishment that came with proletarianization, poor public health, and rising levels of occupational disease, mortality rates were the highest among these communities as well.
A Theory of Economic Development
Proto-industrialization describes a historical process, but it also refers to a theory of economic development first advanced by Franklin Mendels in a seminal article in 1972. This theory, subsequently championed by such historians as Peter Kriedte, Hans Medick, and Jürgen Schlumbohm, argues that proto-industrialization had a direct and causal relation to the emergence of factory production, assumed to be the key characteristic of the industrial revolution. Moreover, it focuses almost exclusively upon the woolen, linen, and cotton industries. Empirical studies confirm, as the theory attests, that the first factories were in the countryside and often concentrated the decentralized cottage production in a single building. It is also true that in some areas proto-industrial merchants acquired substantial resources which they later invested in the building of new machines and factories. One can plausibly draw the conclusion, as the proponents of the theory of proto-industrialization have, that cottage manufacturing in both its small traditional form and as proto-industrialization was eventually replaced by factory production. And, of course, it is well known that the cotton industry was the leader in factory-based industrial development.
The theory of proto-industrialization has as many critics as champions, however, among the earliest being Maxine Berg, Pat Hudson, and Michael Sonenscher. Recent research has demonstrated that industrialization was a slow and protracted process, certainly not complete by 1800, that it did not occur exclusively or even primarily in the countryside, and that it had multiple causes. Moreover, historians are much more inclined today to see the connections between proto-industry and factory production as more geographically limited than the theory originally asserted. Furthermore, studies of the economic functions of cities have shown that, contrary to the assumptions of the theory, cities and towns were not just centers of trade and finance, but were in fact also important manufacturing centers where productive artisans engaged in myriad industrial activities (increasingly supplementing their manual labor with mechanized sources of power as the nineteenth century unfolded), few of which were organized in proto-industrial fashion and even fewer of which evolved into factories.
Perhaps the weakest feature of the theory of proto-industrialization is its overemphasis on the factory in the emergence of industrialism. Research in the last ten years points out that it was only in the second half of the nineteenth century that factory production in textiles truly came to dominate, largely as a result of the widespread installation of power looms. In 1841 in England, for example, scarcely more than half (53 percent) of all cotton workers were employed in factories.
Recent empirical studies have prompted historians to conclude that there were many roads to industrialization, proto-industry and factory production in the countryside being but one, textiles being an important but certainly not the only industry. In fact, much industrialization occurred outside of the factory, notably in metal smelting and mining. A theory like proto-industrialization, therefore, is not so much wrong as limited in its applicability. Indeed, there were many areas of Europe where proto-industries thrived yet did not evolve into factories, nor did these areas sink into "deindustrialized" backwaters, the only two trajectories entertained by the theory of proto-industrialization. Even as some textile manufacturing moved into factories, out-work or cottage work expanded as manufacturers sent work home to be done by workers' families. This was particularly the case in the garment industry, where women did fine needlework and cloth finishing in their homes. Moreover, many other industries besides textiles were proto-industrialized (notably in metalware production), and continued to thrive throughout much of the nineteenth century, even as factory-based industrialization took hold. Indeed, as late as 1851 in England, only 5 percent of the overall industrial workforce worked in factories. Artisanal workshops in the countryside continued to exist and even expand, often as ancillary businesses supplementing the work being done in factories. Skilled machinists and tool and die makers, necessary for the functioning of the machines in the factories, are an illustrative case in point.
Bibliography
Berg, Maxine, Pat Hudson, and Michael Sonenscher, eds. Manufacture in Town and Country before the Factory. Cambridge, U.K., and New York, 1983.
Clarkson, Leslie A. Proto-Industrialization: The First Phase of Industrialization? Basingstoke, U.K., 1985.
Kriedte, Peter, Hans Medick, and Jürgen Schlumbohm. Industrialization before Industrialization: Rural Industry in the Genesis of Capitalism. Translated by Beate Schempp. Cambridge, U.K., and New York, 1981.
Leboutte, René, ed. Proto-industrialisation: recherches récentes et nouvelles perspectives: Mélanges en souvenir de Franklin Mendels=Proto-Industrialization: Recent Researches and New Perspectives: In Memory of Franklin Mendels. Geneva, 1996.
Mendels, Franklin F. "Proto-Industrialization: The First Phase of the Industrialization Process." Journal of Economic History 32, no. 1 (1972): 241–261.
Ogilvie, Sheilagh C., and Markus Cernan, eds. European Proto-Industrialization: An Introductory Handbook. Cambridge, U.K., and New York, 1996.
Read more: http://www.answers.com/topic/proto-industry#ixzz1jyRdP8iq
[edit] 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.
[edit] 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 economically more favourable locations through a process of off-shoring.
The major difficulty for people looking to measure manufacturing industries outputs and economic effect is finding a measurement which is stable historically. Traditionally, success has been measured in the number of jobs created. The lowering of employee numbers in the manufacturing sector has been assumed to be caused by a decline in the competitiveness of the sector. The truth however is that it has been caused by the introduction of the lean manufacturing process. Eventually, this will lead to competing product lines being managed by one of two people, as is already the case in the cigarette manufacturing industry.
Related to this change is the upgrading of the quality of the product being manufactured. While it is easy to produce a low tech, low skill product, the ability to manufacture high quality products is limited to companies with a high skilled staff.
[edit] 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.
[edit] Industrial labour
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. 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.
[edit] 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.
[edit] ISIC
ISIC (Rev.4) stands for International Standard Industrial Classification of all economic activities, the most complete and systematic industrial classification made by United Nations Statistics Division.
ISIC 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.
[edit] List of countries by industrial output
| Rank | Country | Output in billions of US$ | Composition of GDP (%) | % of Global Industry |
|---|---|---|---|---|
| — | World | 21,913.656 | 31.3% | 100.0% |
| — |  European Union |
4,508.012 | 25.1% | 20.6% |
| 1 |  United States |
3,329.324 | 22.1% | 15.2% |
| 2 |  China |
3,291.569 | 47.1% | 15.0% |
| 3 |  Japan |
1,405.292 | 24.0% | 6.4% |
| 4 |  Germany |
1,019.643 | 28.1% | 4.7% |
| 5 |  Russia |
697.414 | 37.0% | 3.2% |
| 6 |  Brazil |
677.322 | 26.9% | 3.1% |
| 7 |  Italy |
565.918 | 25.2% | 2.6% |
| 8 |  United Kingdom |
535.891 | 21.6% | 2.4% |
| 9 |  France |
519.529 | 18.5% | 2.4% |
| 10 |  India |
484.809 | 26.3% | 2.2% |
| 11 |  Canada |
476.602 | 27.1% | 2.2% |
| 12 |  South Korea |
458.556 | 39.4% | 2.1% |
| 13 |  Spain |
396.412 | 25.8% | 1.8% |
| 14 |  Mexico |
388.751 | 32.8% | 1.8% |
| 15 |  Australia |
385.895 | 25.6% | 1.8% |
| 16 |  Indonesia |
383.794 | 46.0% | 1.8% |
| 17 |  Saudi Arabia |
378.759 | 67.6% | 1.7% |
| 18 |  United Arab Emirates |
212.700 | 59.4% | 1.0% |
| 19 |  Netherlands |
207.704 | 24.2% | 0.9% |
| 20 |  Turkey |
205.273 | 26.9% | 0.9% |
| - | Remaining Countries | 5,872.860 | 26.8% |
| Rank | Country | Output in billions of US$ | Composition of GDP (%) | % of Global Industry |
|---|---|---|---|---|
| — | World | 24,680.946 | 31.3% | 100.0% |
| 1 | China |
5,329.942 | 47.1% | 21.6% |
| — | European Union |
3,962.935 | 25.1% | 16.1% |
| 2 | United States |
3,329.324 | 22.1% | 13.5% |
| 3 | India |
1,175.548 | 26.3% | 4.8% |
| 4 | Japan |
1,054.944 | 24.0% | 4.3% |
| 5 | Russia |
879.294 | 37.0% | 3.6% |
| 6 | Germany |
868.141 | 28.1% | 3.5% |
| 7 | Brazil |
621.158 | 26.9% | 2.5% |
| 8 | South Korea |
613.104 | 39.4% | 2.5% |
| 9 | Mexico |
544.157 | 32.8% | 2.2% |
| 10 | Indonesia |
516.413 | 46.0% | 2.1% |
| 11 | United Kingdom |
486.774 | 21.6% | 2.0% |
| 12 | Italy |
460.807 | 25.2% | 1.9% |
| 13 | Saudi Arabia |
458.100 | 67.6% | 1.9% |
| 14 | France |
410.102 | 18.5% | 1.7% |
| 15 |  Iran |
377.676 | 40.6% | 1.5% |
| 16 | Canada |
376.992 | 27.1% | 1.5% |
| 17 | Spain |
364.561 | 25.8% | 1.5% |
| 18 | Turkey |
283.677 | 26.9% | 1.1% |
| 19 |  Taiwan |
283.676 | 32.0% | 1.1% |
| 20 |  Thailand |
282.180 | 45.3% | 1.1% |
| - | Remaining Countries | 5,948.108 | 24.1% |
[edit] See also
 |
Look up industry in Wiktionary, the free dictionary. |
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Wikimedia Commons has media related to: Industries |
- North American Industry Classification System
- North American Product Classification System
- Standard Industrial Classification
- Industry information
[edit] References
Subhranil
