Industrial Areas: Key Concepts and Definitions
Item 7. Industrial Areas
Relocation
Relocation is when a company moves all or part of its production and services to other countries or less developed regions to obtain greater benefits, consequently closing workplaces in the country of origin. Typically, marketing and R&D departments remain in their home countries.
Power Source
Power sources are the natural resources from which useful energy can be obtained for various applications.
Alternative or Renewable Energies
These are related to natural energies, which have a continuous feedback cycle, so they are endless while experiencing fluctuations in intensity. Types include:
- Solar
- Wind
- Hydro
- Geothermal
- Tidal
- Biomass
Industrial Base
An industrial base is a set of facilities for processing raw materials into finished products, which are then used in industrial processes (e.g., steel). This group includes steel, metallurgy, petrochemicals, cement, etc.
Capital Goods Industry
Capital goods industries are engaged in producing machinery and apparatus necessary for the production of goods and services by other industries.
Consumer Goods Industry
Consumer goods industries produce goods that directly satisfy needs for immediate use, without requiring any additional processing of the final product. These can be durable or nondurable.
R&D (Research and Development)
A set of activities undertaken systematically to increase the flow of scientific and technical knowledge, used to introduce new technologies.
Raw Material
A raw material is a material of animal, vegetable, or mineral origin derived directly from nature that becomes the property of industry.
Technology Park
Technology parks are spaces where there is a notable presence of the lead official (state or local government) to attract companies to the tech sectors and generate innovation. They are also called science parks or high-tech complexes.
Industrial Sites
An industrial site is an area of land intended, through urban planning, for the installation of industrial buildings, and most of the time with tax advantages.
Industrial Restructuring
Industrial restructuring is the adaptation of a production system (which had become obsolete due to technological change) to new market requirements, provided under competitive conditions. It occurs in traditional sectors such as textiles, footwear, steel, metallurgy, construction, shipbuilding, etc.
Outsourcing
Outsourcing is a type of cooperation in which a company (the contractor) charges another (the outsourced company) with the manufacture or delivery of any component of their products or services, or all of their current production. Outsourcing is also known as “subcontracting” and includes the outsourcing of services such as stationery, cleaning services, catering, etc.
Advantages for the Subcontracted Firm
- Fixed income, enabling better production planning.
- Ability to focus on technical and production work rather than marketing.
Advantages for the Contracting Business
- Potential reduction of production costs, labor, storage, etc.
- Access to specialists.
- Facilitates the production of goods or services in the short term.
- Ability to devote more attention to the commercial area.