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 ?
Dr Karim El Solh, CEO of Gulf Capital, said, 'This strategic investment in ACCUMED is an exciting one for Gulf Capital, as it offers our investors exposure to the fast-growing healthcare industry in the GCC, but without the capital intensity or regulatory risks usually associated with investments in the industry.
While he acknowledges concerns around increasing capital intensity and pricing pressure for Sandbox, flattish realized pricing on raw sand in Q1 and some delays in fully ramping expansion projects, he thinks the biggest change is a positive one, as U.
Annual labor productivity growth can be viewed as the sum of three components: multifactor productivity growth, the contribution of capital intensity, and the contribution of shifts in labor composition.
a best-in-class electronic materials company with solid growth, high margins, low capital intensity, and strong free cash flow.
Now, he will choose a lower capital intensity and higher employment.
This paper explores the possibility that the labour productivity enhancing effects often ascribed to capital intensity may partly act through some mediating variable.
I argue that if this is caused by changes in capital intensity and labour quality, then it is not appropriate to call the negative correlation a trade-off since it is due to the changes in inputs or their combination and does not affect the overall production efficiency (i.
However, some analysts claim that Free Cash Flow better captures capital intensity, and is a better measure of performance in capital intensive industries (Tole, McCord, & Pugh, 1992).
25) When competitor counts are defined by OECD membership, as shown in rows (2)and (3), the negative association between competitor counts and industry capital intensity is found to be especially strong for OAP assembly imports from developing countries.
Another concern is SCPL's high working capital intensity and regional concentration risk due to its focus on the state of Karnataka.
These were for annual changes in union saturation, export intensity, capital intensity, industrial employment, wages, and inflation.
It differs from previous studies on two fronts; 1) it studies possible associations between industry variables and the export performance of firms by focusing on all possible industry characteristics, namely, R & D intensity, capital intensity, labor productivity, life cycle of the industry and concentration ratio and 2) it is a comparative study of exporting firms in three major economies; the US, Germany and Japan.

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