Industry is an important part of a country’s economy. With the existence of a field that is identical to this manufacturing term, it is possible to form a chain of efforts to meet needs. In this case, including processing agricultural products, plantations, and mining.
Industry Is An Important Part In The Economy
Understanding the industry can be interpreted as the use of skills by using the tools in the field of processing crops and their distribution as the basis. This field has two types. The first is the goods industry and the second is the service industry.
This field is an effort to process raw materials into semi-finished goods or ready-made goods. In its activities there are various types of goods. For example, clothing, shoes, cars, and various drugs. In addition there are still many types of goods from this industry.
Unlike the goods industry. For the service industry, there are services provided to the public or consumers. For example, bus, train, shipping services and various other services.
There is also a service industry that provides services to assist the production process. in this case for example bank services, warehousing, and various other services. There are still more types of industries with service products that you can meet in everyday life.
Industrial History in the World
The existence of industry is inseparable from the development of human civilization. People used to work by hunting, farming and living by moving around. Then humans began to settle down and build houses. Finally, the processing of agricultural land began.
Of all these human activities, the earliest industry emerged. For example, artisans and services providing agricultural equipment. Next began to develop with the emergence of craft products that are used by the community at that time.
Whereas for iron and steel mining began to develop in the middle ages. This continued with the mining of fuels and energy such as coal and petroleum. The development of the industry itself is growing very rapidly marked by the establishment of mass factories.
The existence of this factory relies on large-scale labor in the effort to create goods or services. From there emerged the classification of industries that are spread throughout the world until now.
An industry is very related to factories. This is where all the processes of making goods and services take place. This factory is at the same time a place for people, machines, and production systems that together produce something in the form of goods or services.
Economy Principles in Industrial Activities
In running an industry, there is an application of economy principles in it. Examples of the application of this economy principle are:
- An increase in service quality
- Timely distribution of goods
- Use of easy and inexpensive distribution facilities
- Purchase of goods from producers directly
- Provision of goods and services for consumers of interest
- Determine the location of the company that is between the location of producers and consumers
With all these efforts various benefits will be generated. One of them is maximum profit. In addition there is the possibility of losses that are getting smaller due to certain mistakes. And no less important is the maximum use of capabilities and capital.
Industry is one of the activists of economy activity. Especially in producing products in the form of goods and services. With this field, human needs will be met, especially for basic needs that are needed daily. For example, clothing, food, shelter and transportation.