capital intensive

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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 ?
By contrast, the portion of the decline in the growth of capital intensity resulting from structural changes does not generate a rebound.
Finally, consistent with recent theories of outsourcing which note that the effects of costs may be diminished by procedural difficulties that are present in outsourcing relationships, the results show that cost responses are in fact largest for outsourcing that involves low capital intensity production in non-OECD locations.
The capital intensity of such a hydrogen refueling infrastructure is probably less than the capital intensity of sustaining the existing gasoline fueling infrastructure, according to Lovins.
Finance director Andrew Higginson said the move would allow Tesco to maintain a balance between the capital intensity of holding a growing freehold portfolio and "an element of leasehold", at the same time as making money available for investment in improving stores.
The extended data series gives estimates of relative levels and growth rates of labour productivity, capital intensity, skill intensity and total factor productivity (TFP) from 1950 to 1999.
To improve earnings growth with lower capital intensity, Eastman Chemical Company, Kingsport, TN, has announced changes in its business portfolio.
Mr Dube lamented the fact that manufacturing production levels had continued to fall below their peak in the late 1980s when the sector was less capital intensive: "It is from this point of view that the argument for increased capital intensity becomes futile.
The goals in this area are to achieve a 35% reduction in manufacturing costs through a focus on significant process change, a 50% reduction in capital intensity through a focus on simplifying or eliminating process steps, and a 50% increase in fiber/product properties through a better understanding of chemistry, biochemistry and physics.
Compensation rates within given industries vary among the establishments of the six investing countries largely because of differences in plant scale, capital intensity, and location.
Economists blame weaker productivity on lack of business investment in new equipment, which they say has led to an unprecedented decline in capital intensity.
The ten best performing stocks among current constituents are ARM, Ashtead, Next, Hikma, Babcock, Compass, Shire, Admiral, easyJet and Whitbread, and there are some themes that permeate - a scalable business model, relatively low capital intensity, low financial leverage and good cashflow generation.
About the Report The Dell'Oro Group Carrier Economics Report provides in-depth coverage of carriers' revenue, capital expenditure, and capital intensity trends.

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