Capital Intensive and Labour Intensive Operations
What is the difference between capital intensive and labor-intensive operations?
Capital-intensive operations rely heavily on machinery, automation, and technology to carry out production processes. Labor-intensive operations, on the other hand, require a significant amount of manual labor and rely less on machinery and automation. The choice between capital-intensive and labor-intensive operations depends on factors such as the nature of the industry, cost considerations, technological advancements, and the availability of skilled labor.
What are some industries or sectors that typically have capital-intensive operations?
Industries or sectors that typically have capital-intensive operations include manufacturing (e.g., automotive, aerospace), energy (e.g., oil and gas, power generation), infrastructure (e.g., construction, transportation), telecommunications, and heavy machinery. These industries require significant investments in fixed assets such as plants, machinery, and infrastructure to carry out their operations.