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What is industry?

News & Blog

We are all familiar with different parts of the industry;
But do you know what the role of industry is in each country and what areas it is actually limited to?

In this article, we will examine the industry and its different levels.Join us to get acquainted with it.

 1- What is industry? (industry)

Many people think of industry as the mass production of goods in well-organized factories with a high degree of automation and expertise.

Although this is a common example in the industry; But the industry can include other business activities that
Offers goods and services such as agriculture, transportation, hospitality and much more.

In fact, industry is a group of manufacturing institutions or organizations that
Produce or supply goods, services or sources of income.

 The importance of identifying the industry at the beginning of the activity

 we will explain to you with an example why it is important for you to know the industrial branch of your work in the most basic steps and
What are the benefits of knowing it?

2- What are the industry levels?

Industry can be classified into different categories or levels for better understanding of different types and for ease of study. Many school textbooks, however, list only three levels, But more advanced books categorize the industry into five levels Terms related to each level are derived from Latin words referring to numbers from one to five But placing a company in any of these sectors is based on its largest sources of revenue

For example, a car manufacturer may have a financial division that 10% contributes to the overall revenue of the company; But it determines the level of the industry
Provides the main income of the company

2/1: Primary Industry

This part of a country’s economy includes agriculture, forestry, fishing, mining and mineral extraction.

This level may be divided into two categories:

Genetics industry, including the production of raw materials that may increase with human intervention in the production process.
Extraction industry, including the production of raw materials that can not be increased through cultivation.

Genetic industries include agriculture, forestry, and livestock and fishing management.

Of course, all this depends on the scientific and technological improvement of renewable resources.

Extraction industries also include ore mining and mineral fuel extraction.

But in short, what is this level of industry?

Primary industries are industries that extract or produce raw materials
Useful items can be obtained from them.

Primary industry tends to dominate the economies of underdeveloped and developing countries;
But with the development of secondary and tertiary industries, its share of economic production decreases.

Secondary industries can be divided into large-scale or small-scale industries.

1) Large scale industry

Large-scale industry requires heavy investment in factories and machinery
It serves a large and diverse market, including other manufacturing industries.

The industry has a complex industrial organization and often has a skilled workforce
Produces a large volume of production required.
Examples include:

Oil refining
Steel and iron production (modern forging)
Manufacture of motor vehicles and heavy machinery
Cement production
Refining of ferrous metals
meat package
Electricity and water production

2) Light industry or small scale

Light industry or small scale may with
Determine the unsustainability of manufactured products and less capital in factories and equipment
May include non-standard products such as custom crafts or handicrafts.

In this industry, the workforce may have little skill.
For example, jobs such as textiles and clothing production, food processing and plastic production require less skills.

Of course, sometimes highly skilled products are also at this level, some of which are:

Electronics and computer hardware products
Build precision instruments
Cutting precious stones
Handicraft work

3-2 # What is the third level of industry? (Tertiary Industry)

Third-class industries are called industries that
Provide essential services and support for other levels of industry.

This industry is one of the low-cost and high-income industries; But what is the importance of this industry?

The industry does not produce tangible goods, though; But offers intangible services or profits that
They usually generate significant wealth based on initial capital.

The third level of industry

This level, often referred to as the service industry, includes private and public companies
These include:

Transportation
financial department
City Services
Education
Wholesale trade
Retail and resale
Professional Services
Consulting, legal and personal services
Repair and maintenance
Housing
Medicine and Health
Official
Security and Defense

Since the primary and secondary levels of the industry cannot function without these services,
They are sometimes called “rotating” industries.

For example, most of Thompson (Iowa) is made up of high-end industries or services rather than
Support the primary mining industry.

4-2 # Quaternary Industry

At first glance, they cover the first three levels of the whole industry;
So you might be interested to know what the fourth level of the industry is.

As mentioned, the third tier industry has expanded significantly due to its unique feature (lower cost).

The fourth level industry, like the third level, is a combination of private and public efforts.

Level 4 industry

But the industries and activities of this sector include information systems and information technology (IT)
Some of them include the following:

Research and Development
Technology development and scientific research
Financial and strategic analysis and consulting
Media and communication technologies and services
Education
Training and educational technologies and services

Level 4 industries for information production and transmission include research and education.

This level, often called the information industry,
As a result of advances in technology and electronic display and transmission of information, there has been significant growth.

5-2 # Level 5 Industry (Quinary Industry)

Level 5 industries are those industries that control industrial and government decision-making processes.

This level includes executives and industry managers and government officials and elected government officials.

Policies and laws are made and implemented at this level, which refers to different levels of industry.

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