- For other uses of this term, see Industry (disambiguation)
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 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.
Industry in the sense of manufacturing became a key sector of production 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.
Early industries involved manufacturing goods for trade, including weapons, clothing, pottery. In medieval Europe, industry became dominated by the guilds in cities and towns, who mutual support for the member's interests, and maintained standards of workmanship and ethical conduct.
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
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
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.
There are several branches of technology
specialised for industrial application. This includes mathematical models
, patented inventions
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
and 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
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
and Colin Clark
's Sector model
Industry sectors and classification
There are many other different kinds of industries, and they are usually divided into different classes or sectors.
The primary sector of industry
and raw material extraction
. The secondary sector of industry
- which is what is colloquially meant by the word "industry". The tertiary sector of industry
production. Sometimes one talks about a quaternary sector of industry
, consisting of intellectual services such as R&D
- light industry - heavy industry
- labor-intensive industry - capital-intensive industry
- By product: chemical industry, petroleum industry, meatpacking industry, hospitality industry, food industry, fish industry, software industry, paper industry, entertainment industry, semiconductor industry, cultural industry, poverty industry
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 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.
Industry Center by Yahoo!Finance is also very useful (shows Trends of all industrial sectors).