An economic activity where a significant portion of the resources invested are allocated to fixed assets, such as machinery, equipment, and infrastructure, relative to other factors of production like labor. Industries involving manufacturing, resource extraction (like mining), and transportation typically require substantial investments in such assets to initiate and maintain operations. This contrasts with activities reliant more on human skill and effort, where labor costs represent a larger share of total expenses.
Such a characteristic offers the potential for enhanced productivity, as automation and advanced technologies can increase output per worker. Furthermore, it can foster economies of scale, leading to lower per-unit costs as production volume rises. Historically, shifts toward this model have driven industrial revolutions and fueled economic growth by enabling the mass production of goods and services, contributing to increased living standards and societal development.