capital intensive


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Related to capital intensive: Labour Intensive

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.

capital intensive

Of or relating to a firm or industry that requires large amounts of fixed assets and/or cash to operate. Steel, automobile manufacturing, and mining are capital intensive industries.
References in periodicals archive ?
The satellite business is also highly capital intensive, and the combined company has spent over $3.
Leading reliability authority Terry O'Hanlon, will deliver the Summit's first keynote where he will discuss challenges of the aging workforce and skills shortage facing today's capital intensive industries.
Leonetti: "the rework and flood programs using existing wells provides more profit potential to investors than new drilling; it is less capital intensive, there is a higher probability of success as a result of historical records of oil production, and, the return on investment is achieved earlier.
In the mid-1970s, the global pulp and paper industry began to realize that the energy conversion equipment of that time was inefficient, capital intensive, and had safety and environmental issues.
Gap 3--The process is capital intensive and complicated: A modern chemical pulp mill cannot exist without systems for cooking, washing, recovering, and re-using chemicals.
First, there is a significant barrier to entry, as life reinsurance is very capital intensive.
As real estate operating companies typically must distribute all of their net income, and they operate in a capital intensive business, growth must be funded externally.
The life reinsurance business is a highly capital intensive business that typically requires access to the capital markets for collateral and to fund growth.
If they become easier and less capital intensive to process, then that will certainly help the smaller operators work profitably," he says.
Results show that all the top five exporting industries are capital intensive ones thus indicating that export share of capital intensive industries increased (at double digit) during the whole period but wage share of all these industries also increased (single digit) with maximum increase in wage share of petroleum products (5.
As capital intensive manufacturing companies strive to get the most from their investments, they can use technology to take an integrated approach to operation, monitoring, and control of their manufacturing facilities.
The business of operating an auto retailing business has become much more capital intensive with respect to facilities requirements today," said Brodie L.

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