‘Factory’ vs ‘Industry’
Our economy is dependent upon several factors, namely; labor, capital, resources, and other economic agents that are necessary for the production, exchange, distribution, and consumption of goods and services.
It is likewise dependent on several economic sectors or industries. In ancient times, the economy was primarily based on subsistence farming until the advent of the industrial revolution which paved the way for extensive forms of agriculture and the development of the mining, construction, and manufacturing industries.
Today’s economy is more complex and involves technology which makes it more advanced and modern. Services and finance still play major roles in its development and progress, but industry is the most essential.
‘Industry’ refers to the production of economic goods whether material or service. A place is set for the production of these economic goods, and it is called a factory. Also known as a manufacturer or a manufacturing plant, it is where laborers process products either manually or with the help of machines.
Ancient economies like China, Rome, and the Middle East had large mills and workshops where they produced goods. The Venice Arsenal, a factory in the Republic of Venice founded in 1104, was a location which was known to first mass produce ships in manufacturing plants.
Today there are many manufacturing plants or factories that produce products ranging from the smallest computer chips to the largest ships and aircraft. A typical factory involves people and laborers, capital to start it running, and the plant itself where goods are produced.
Factories are part of the economy’s four key industrial sectors which are as follows:
ï¿½ Primary, which includes farming, mining, and logging and involves the extraction and production of raw materials.
ï¿½ Secondary, which includes factories that process products from primary industries. It is here that metals are refined, wood is made into furniture, steel is made into cars and other vehicles, and farm products are packaged and readied for consumption.
ï¿½ Tertiary, which includes people who provide services like teachers, doctors, lawyers, sales clerks, nurses, and other service providers.
ï¿½ Quaternary, which include people who are involved in scientific research and in the development of new technology. It aims in helping in the production of new products that will benefit both the environment and the consumers.
Factory and industry are very important in the development and growth of an economy. One cannot exist without the other, and an economy will likewise be lacking if these two are not present.
1. ‘Industry’ is the production of economic goods and services while ‘factory’ is a place where goods are produced or manufactured.
2. Both are involved in the economic process but an industry is broader in scope while a factory is not.
3. Both involve people, money, and raw materials, but an industry also involves services like those being offered in hospitals, stores, transportation, and other service sectors while a factory is only involved in the production of goods like the processing of food, production of vehicles, and the production of building materials for our homes, among other things.