Capital-intensive Industry
Capital-intensive industries use a large portion of capital to buy expensive machines, compared to their labor costs. The term came about in the mid- to late-nineteenth-century as factories such as steel or iron sprung up around the newly industrialized world. With the added expense of machinery, there was greater financial risk. This makes new capital-intensive factories with high tech machinery a small share of the marketplace, even though they raise productivity and output. Some businesses commonly thought to be capital-intensive are railways, airlines, oil production and refining, telecommunications, mining, chemical plants, electric power plants, etc.
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“Bankers, nepotists, contracts and talkies: on four fingers one may count the leeches which have sucked a young and vigorous industry into paresis.”
—Dalton Trumbo (1905–1976)