Industrial company – What is it, definition and concept

An industrial company is one that buys goods or extracts raw materials and sells them after transformation.

Usually, industrial companies transform goods using technology, machinery, tools and / or energy. The key to these types of companies and what differentiates them from others is transformation. That is, the product that they finally sell is not the same one that entered the company. For example, aluminum enters and a bicycle leaves.

Thus, the type of goods with which it works can proceed, fundamentally, in two ways: extraction or purchase. In the first case, we could cite a company that has a marble quarry, extracts it, transforms it into slabs and sells it. In the second case, it buys a good (oranges) from another company and transforms it into bottled juice.

As expected, industrial companies belong to the industrial sector or secondary sector. A sector that began to develop seriously in the middle of the 18th century. First, thanks to the First Industrial Revolution and, later, towards the middle of the 19th century with the Second Industrial Revolution.

Characteristics of an industrial company

The characteristics of an industrial company can be summarized as follows:

  • They transform goods.
  • Use machinery, tools or technology for the transformation process.
  • They usually produce a large number of units.
  • They produce in chain.
  • They are located in industrial estates or areas that facilitate the entry and exit of their inputs and products.

Additionally, they have another series of singularities. However, the above will already depend on the type of industrial company to which we are referring.

Types of industrial companies

Taking into account the above, we can say that the most significant classification of this type of companies is usually the one that distinguishes extractive companies from manufacturing companies. Of course, this is not the only classification. Different classifications are shown below:

  • According to the manufactured product:
    • Light: Produces consumer goods.
    • Heavy: Produces capital or capital goods and uses large amounts of raw materials or energy.
  • According to the obtaining of inputs:
    • Extractive: They extract natural resources and transform them.
    • Manufacturing: They transform raw materials and turn them into semi-finished or finished products.

With the above in mind, it is worth delving further. Which industrial companies are considered manufacturing and extractive? A fairly complete classification could be the following:

Extractive industrial companies

  • Anthracite.
  • Crude oil and natural gas.
  • Extraction of metallic matters.
  • Stone, sand or clay.
  • Activities that offer support to the previous ones.

Manufacturing industrial companies

  • Feeding.
  • Drinks.
  • Tobacco.
  • Textile.
  • Clothing.
  • Leather and footwear.
  • Oil refinery.
  • Graphic arts and reproduction of recorded media.
  • Chemistry.
  • Pharmaceutical.
  • Rubber and plastics.
  • Non-metallic minerals.
  • Metallurgical.
  • Siderurgica.
  • Automotive.
  • Weapons.
  • Robotics
  • Computing.
  • electronics
  • Aeronautics.
  • Aerospace.

Examples of industrial companies

Examples of companies that are engaged in industrial activity could be General Motors, Boeing, Arcelormittal or Arca Continental.

General Motors was founded in 1908. So, without a doubt, it is one of the companies with the most history. It is dedicated to the automotive sector. Therefore, it is included within the heavy industry and manufacturing.

For its part, Boeing is an American multinational that began operating in 1916. Although it is widely known for its aircraft models, the truth is that it also manufactures other goods such as missiles and satellites. For this reason, it is considered a company in the aeronautical, aerospace and arms industry. While it is true, all be said, that it also has a division focused on computer systems. It is part of the heavy and manufacturing industry.

Third, Arcelormittal is one of the largest steel companies in the world. It is specialized in the production of steel that it sells to different sectors. Among them are automotive and construction. However, Arcelormittal is a heavy industrial, extractive and steel company.

Lastly, Arca Continental is the largest Coca Cola bottler in Mexico. It also has licenses in other countries on the continent such as Argentina, Ecuador or Peru. It is classified as a light industrial, manufacturing and beverage company.

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