capital-intensive
The semiconductor industry is highly capital-intensive.
It requires significant financial investment to establish and operate.
Requiring substantial investment in physical or financial capital to operate or produce goods/services.
Manufacturing plants are often capital-intensive due to the cost of machinery and infrastructure.
They require large upfront investments in equipment and facilities.
Renewable energy projects like wind farms are capital-intensive but have low operating costs.
They need significant initial funding but are cheaper to maintain.
Often contrasted with labor-intensive industries, which rely more on human labor than capital.
Collocations
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Related Phrases
Pro Tip
Industry Context
This term is often used to describe sectors like manufacturing, energy, or technology, where large upfront investments are needed.
Contrast with Labor-Intensive
While capital-intensive industries focus on machinery and infrastructure, labor-intensive ones rely more on human workers.
Gold Rule
Economic Analysis
Capital-intensive industries typically have high startup costs but lower marginal costs per unit produced.
Word Origin
From 'capital' (financial assets) + 'intensive' (requiring concentrated effort/resources). Coined in economic and business contexts.
Usage Notes
Common in discussions about industry economics, business models, and investment strategies. Often used to describe sectors like manufacturing, infrastructure, or technology.