• What is an industrial company?
• Characteristics of an industrial company
• Types of industrial companies
• Examples of industrial companies
• Benefits of the industrial plant
• Difference Between Business and Industry

We explain what an industrial company is, its characteristics and types. In addition, examples of industrial companies from around the world.

An industrial company produces value-added goods through labor and technology.

What is an industrial company?

An industrial enterprise is a type of organization with profit whose productive activity focuses on the activities of obtaining, processing and transforming the raw material in finished goods (going straight to the consumer) or in intermediate goods (which serve as input to others Business of the sector). Industrial companies are part of the secondary sector of the economy, the manufacturing sector.

However, industrial companies are distinguished from other manufacturing companies in that their work involves the profound transformation of the raw material, in highly mechanized and/or automated facilities, in which more or less specialized workers work. The work of the industry is, precisely, to produce through the worked and the technology different goods with added value.

Industrial companies arose with the Industrial Revolution, in 18th century Europe, and since then they have been a fundamental economic actor in the capitalist world, without which the modern way of life would not have been possible. The transformation of the peasantry into the working class, the mass production of goods and the construction of a consumer society they were only made possible by the success of the industry.

Characteristics of an industrial company

An industrial company is broadly characterized by the following:

• It is dedicated to the production of finished or semi-finished goods, from raw material extracted from nature (or also processed by other industries). Its production can be on a large scale, or in a minority way.
• They are for-profit organizations that produce goods with added value, that is, whose commercial value is greater than the total value of its components separately.
• Since their appearance in the eighteenth century, industrial companies have been among the leading employers in the contemporary world.
• They are usually located in large spaces that house the machinery and labor necessary to produce. For production, they also require capital of investment, raw material and energy.

Types of industrial companies

Light production companies use little energy and require light machinery.

Industrial companies can be, fundamentally, of two types:

• Extractive companies. They are companies that are dedicated to obtaining the raw material and its management so that it serves as an input for other secondary companies. These companies normally have a permit or tender from the Condition (owner of the natural reserves of a country) to exploit the resources available in the soil or subsoil. For example: mining companies that extract lithium, copper and/or precious metals from the subsoil.
• Manufacturing companies. They are companies that are dedicated to the transformation of raw materials and the production of finished or semi-finished goods. For this they often require raw material extracted by other companies. For example: the companies that receive the iron plates from an extractive company and with them produce nails and screws. Some of them will go for direct sale to the public, and some will go to other manufacturing industries that they will use them to produce furniture.

However, manufacturing companies can be, in turn, of two types:

• Light production companies.They are companies that produce consumer goods or poorly processed intermediate goods. For this they use little energy and require light machinery. For example: an agricultural company that harvests barley.
• Heavy production companies. They are companies that produce capital goods (equipment and machinery) or complex goods. For this they use a lot of energy and heavy machinery. For example: an auto parts factory.

Examples of industrial companies

Some examples of industrial companies are:

• Nokia. Finnish multinational company dedicated to the field of technology and the telecommunications, that is, to manufacture electronic devices.
• PDVSA. Venezuelan state company dedicated to the field of extraction oil company and the refining of crude oil to obtain important derivatives.
• General Motors. American company created in 1908, dedicated to the manufacture of automobiles and automobile parts.
• Boeing. Multinational company of American origin dedicated to the production of aircraft (planes), satellites and weapons.
• Arcelormittal. Multinational company considered to be the largest steel company on the planet and leader in steel production.
• International Business Machines Corporation (IBM). Multinational company of American origin dedicated to the manufacture of electronic and computerized equipment.
• IKEA. Multinational company based in the Netherlands, dedicated to the manufacture and sale of furniture, mattresses and other supplies for the home.
• Tramontine. Internationally renowned Brazilian company, dedicated to the field of supplies for the kitchen and dining room.
• LEGO. Danish children's toy company, famous for its plastic building blocks.
• Bayer. Chemical-pharmaceutical company of German origin, pioneer in the world of aspirin, recognized for the quality of its vaccines and medicines.
• Huawei.Multinational company of Chinese origin, dedicated to the field of technology and telecommunications, especially to the manufacture of smartphones.
• Ford Motor Company. American company specializing in the production of automotive goods, named after its founder, the legendary Henry Ford.
• Penguin Randomhouse. Multinational company dedicated to the publishing sector, that is, to the printing of books, emerged from the merger of Penguin Books and Random House.
• ExxonMobil Corporation. American oil company founded in 1870 under the name of Standard Oil Company.
• Procter & Gamble (P&G). Multinational company of American origin, dedicated to the production of personal hygiene consumer goods.
• Heyi Wood Industry Co. China's timber company, producing intermediate goods for construction and furniture manufacturing.
• Compagnie Generale des Établissements Michelin. French company dedicated to the manufacture and sale of tires for cars and motorcycles.
• VW. Multinational company of German origin, dedicated to the manufacture of automobiles and spare parts.
• Panasonic. Japanese multinational company founded in 1918, which is among the leading manufacturers in the technology and electronics sector in the world.
• SanCor. Argentine company dedicated to the production and marketing of milk and dairy products.

Benefits of the industrial plant

Industrial plants are usually located on the outskirts of cities.

Industrial plants are called specialized locations for industry, that is, locations dedicated to industrial work. Industrial plants are usually located on the outskirts of cities, so that they do not negatively affect the quality of life of the residents. Among the virtues of this type of location are:

• They have the infrastructure suitable for productive work.
• They have basic services (such as electricity, gas and water) exclusively dedicated to the industry.
• provide greater industrial Security, physical and legal investors.
• They allow the organization of productive work in suitable spaces, which results in a better work environment.
• provide minors costs operations by centralizing everything in the same space.
• They often have tax exemptions.

Difference Between Business and Industry

The terms "company" and "industry" often go very hand in hand today, but that does not mean that they are synonymous or interchangeable. A company is a human organization with productive and profit purposes, that is, a legal form of organization of people that allows them to invest money in the development of a profitable activity.

Companies can be of many different types -industrial, for example-, depending on the type of activity they carry out. For example, an importing company is one that buys goods abroad and then sells them within its country.

On the other hand, "industry" is a much more specific term, which has to do with the transformation of matter into consumer goods, using labor, machinery and energy. It is a modern economic activity, typical of the world of capitalism, whose appearance transformed humanity forever.

In fact, we associate this work with companies because the industry emerged precisely in the private sector of 17th century Europe, more specifically in the great textile factories of England. However, as has been seen recently, not all companies are dedicated to industry, but within the capitalist model of production, all industries necessarily make up a company, whether public or private, dedicated to the industrial exploitation of a specific item. .