Capital-intensive


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Capital-intensive

Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive.

Capital Intensive

Describing a company or industry requiring a great deal of capital to maintain operations. For example, the automobile industry is capital-intensive because, in order to make cars, it requires a lot of workers and expensive equipment that must be properly maintained. Another, smaller scale example is a dentist office, which requires expensive equipment and materials. In order to stay afloat, capital intensive companies need either consistently large profits or inexpensive credit.
References in periodicals archive ?
More significantly, high capital-intensive industries evidently require high margins to be viable.
In most capital-intensive industries, millions of dollars must be invested.
Its intent is to shift some of the tax burden from capital-intensive businesses to service-based ones, and also to out-of-state businesses that sell into Ohio.
The West's numerically dominant "pea santries" faded into small, government-subsidized minorities practicing capital-intensive and land-intensive agriculture.
The company is focusing its energies on the Internet play,'' said DeMattos, ``and divesting away from the capital-intensive side of the business.
CONWAY: The disallowance of the compensation deduction creates a major disparity between industries that are capital-intensive, such as chemicals and pharmaceuticals, and those that are not, such as heavy manufacturers.
The proposed restriction on federal income tax deductibility for these taxes will increase their economic cost to corporations operating in capital tax jurisdictions, thereby increasing the existing incentive to move capital-intensive businesses to jurisdiction where such taxes are not imposed.
VPS' Virtual Workspace gives lawyers access to a highly secure collaborative environment for creating, storing and retrieving documents and records without the commitment of a capital-intensive technology investment.
One of the goals of the group is to create reliability-focused programs at the PIMA International Management Conference each summer Our name expresses the contribution the critical support function of maintenance contributes to the bottom line of our capital-intensive industry, first, through reducing costs, second, through increasing plant capacity, and finally, through extending the life of our working assets.
With an extremely low capital-intensive model, we've been able to expand our network quickly and cost-effectively, resulting in improved performance and scalability for customers.
It said it's divesting capital-intensive divisions and using the funds to relieve debt and improve liquidity.
Although the proposed capital gains tax cut in the House Republican Contract with America has received much attention, a less noticed item in the contract could garner major tax savings for capital-intensive businesses.