When it comes to heavy industries, there are important aspects that people need to be aware of. These industries are often characterized by a number of features that appear the same regardless of the varied products and services that come from these industries. Some of the characteristics include;
- Raw materials
Most of the heavy industries are characterized by raw materials. Close to 70% of the products that come from this industries are made of raw materials. This is unlike the other industries that require less percentage of raw materials. Therefore for it to be classified as a heavy industry then it must be based on the production and use of raw materials.
- Less competition
Since these industries are classified as being heavy in their production and even their products, they are deemed not to have competition. The reality of the matter is that very few companies or even industries would want to engage in heavy products. The bottom line is the starting capital is very high and very few people would afford. When it comes to the other industries, there is so much competition since every other business falls in this category.
- High competencies
The other thing that clearly characterizes these industries is the highly competent people that they require to run effectively. Most of the other mid level companies can actually survive with people of all levels when it comes to competencies, but for heavy industries, the personnel must be competent.
- Limited fragmentation especially at the top
In most cases, other companies have fragmentation running form the top to the bottom. This enables them in running the business at every level as authority and power are shared among all the staff. There is also delegation of duties in mid level companies which is not the case with heavy industries. Mostly those at the top usually have the required skills for running the production of the required products and therefore do not require extra people to help in. this is the reason as to why very specialized and highly competent people are required in these industries.
Looking at all this, it clearly brings out the difference between mid level industries and heavy industries as well as engines.