What Is a Commercial Industry?

A commercial industry is an industry that focuses on widespread production with the goal of selling the maximum amount of products possible to consumers. Production typically occurs in factories with many workers.

In a commercial production factory, each worker is usually responsible for one part of the manufacturing process. These factories often use new or cost-effective technology.

The assembly lines that were developed by Henry Ford are an early example of the production involved in a commercial industry. Each worker was assigned to a station in which to perform a task on a chassis, after which the chassis was hauled to another station. After going through every station, a completed car was ready. This method allowed cars to be produced more quickly and at a lower cost.

A cottage industry also produces items for consumers, but the approach contrasts with that of a commercial industry. A cottage industry has a small number of employees, sometimes only one or two. It may be based out of a home. An employee may make the entire product himself using more traditional methods instead of the most cost-effective methods.

Homemade textiles and jewelry are cottage industries. Products from cottage industries are often more expensive than those from commercial industries.