Some industries commonly thought of as capital intensive include oil production and refining, telecommunications and transports such as railways and airlines.
In all of the above industries, a large financial commitment is required just to get the first unit of good or service produced. Once the upfront investments are made, there may be economies of scale with regards to ongoing expenses and sales growth. But the initial hurdle to get into the business tends to keep the list of competitors small, creating high barriers to entry.
Companies in capital-intensive industries are thus often marked by high levels of depreciation and fixed assets on the balance sheet.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
capital-intensive — [kap′ət lin ten′siv] adj. requiring a large investment in capital goods and a relatively small labor force [a capital intensive industry or plant] … English World dictionary
capital-intensive — capital in tensive adj a capital intensive business, industry etc needs a lot of money in order to operate properly →↑labour intensive … Dictionary of contemporary English
capital-intensive — capital in tensive adjective a capital intensive business or activity needs to have a lot of money invested in it ─ compare LABOR INTENSIVE … Usage of the words and phrases in modern English
capital intensive — adj. Requiring a large amount of equipment for production. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
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. Bloomberg Financial… … Financial and business terms
capital-intensive — ¦ ̷ ̷ ( ̷ ̷ ) ̷ ̷ (ˈ) ̷ ̷ ¦ ̷ ̷ ̷ ̷ adjective : having a high capital cost per unit of output ; especially : requiring greater expenditure in the form of capital than of labor * * * adj [more capital intensive; most capital intensive] business … Useful english dictionary
capital-intensive — adjective Needing a relatively large expenditure on capital, especially when compared to that spent on labour. Petroleum is the most productive and capital intensive industry while apparel is the least productive and least capital intensive … Wiktionary
capital-intensive — ADJ Capital intensive industries and businesses need the investment of large sums of money. Compare labour intensive … English dictionary
capital intensive — adjective a capital intensive business, industry etc needs a lot of money for it to operate properly compare labour intensive … Longman dictionary of contemporary English
capital-intensive — UK / US adjective business a capital intensive business or activity needs to have a lot of money invested in it • See: labour intensive … English dictionary