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 ?
'These production processes could be moved to relatively less capital-abundant countries such as Malaysia and Thailand, while the least capital-intensive processes could be moved to Indonesia, Philippines, India and Vietnam,' according to Oxford Economics.
Sami bin Salem Al Sahib, Director General of the Directorate General of Industry in the Ministry, said, "The industrial strategy will focus on three main areas: the sectors that rely on local resources; the capital-intensive sectors, such as the manufacture of electrical equipment, machinery, cables, electrical connectors, furniture, etc; and the sectors that rely on knowledge, research and development." "The different sectors were chosen on the basis of several variables, such as exports, added value, import substitution, employment, labour efficiency, the relative advantage of the Sultanate and the attractiveness index of Omani exports," said Al Sahib, adding, "All the industrial sectors were examined globally.
Because life insurance is a capital-intensive product that spans decades and needs to be viewed through a long-term lens, true profitability can be determined only after policy obligations have been fulfilled.
Economic development in Pakistan has entailed transfer of resources from agriculture to the urban organised sector or from a labour-intensive to a capital-intensive sector.
"88% of leaders in capital-intensive industries say that digitalisation would increase their revenues*", said Craig Hayman, Chief Executive Officer at AVEVA.
"The data showed that as telcos and developers aggressively embark on increasing capital expenditures, they must be able to generate enough cash flow to sustain the needed investments in capital-intensive industries," the statement said.
The brownfield is less of a challenge but is a capital-intensive project that requires billions of dollars in investment, which once completed will benefit Oman.
They said the significance of PSEs could not be ignored in view of the fact that they remained the most employment-intensive and capital-intensive organisations.
The bank said that it is pursuing the sale because returns in the capital-intensive insurance industry were falling.
The structure and evolution of the exports and imports of Romania in the last years have indicated an increase in the intra-industry trade, and concurrently, a shift towards the commerce in predominantly capital-intensive commodities.
TEI maintains that the elimination of the deduction will adversely impact businesses with capital-intensive operations, complicate their financial reporting obligations, break the promise made to the business community when combined reporting was enacted and undermine the Commonwealth's credibility with taxpayers.
Firms operating in capital-intensive industries require significant investments in capital to start and maintain operations.