What are Goods and capital goods?
What are goods, the dictionary defines ‘goods’ as ‘the items that satisfy human wants. What then are capital goods, capital goods are the items that make up the items that satisfy human wants. Capital goods are manufactured solely to be used to manufacture consumer goods, consumer goods being the items that satisfy human wants or rather the goods that humans consume. Capital goods are an essential industry without which the human society will be halted.
What decides which goods are capital and which are consumer in nature?
Some goods that may be consumer may also be used as capital in nature. But there are four categories that help classify the goods. The interchanging nature of capital and consumer goods makes it particularly important to have this distinction, and so for the sake of understanding, there are four levels that can be used to identify the nature of goods.
The quantity that a product is bought in is the key distinguishing feature of whether a product is consumer or capital in nature. For instance, anyone buying fifty gallons of honey is more likely to using is as an ingredient in something rather than consuming it directly.
The second distinguishing feature is the buyer. A person buying fifty gallons of honey is more likely to use it as an ingredient in some consumer goods but that does not eliminate the possibility that the person could be doing a honey give away. Most companies are required to register and get a licence in for producing consumer goods. This distinction also is able to classify the goods.
Another point of consideration is who the end user is going to be of the honey, if the end user is one or a smaller amount of number than it is likely that it is not a capital goods. If the end user is numerous and spend money to get the honey then the honey is capital goods, even if it is just honey that is sold further.
The final distinguishing feature is investment. Consumer goods are usually bought with personal investment whereas capital goods are procured through outside investments. By looking at the flow of cash, one can determine the nature of the goods.
What are the capital goods industries sectors?
The capital industry produces goods that become consumer goods, now that we can distinguish them, let us look at the main sectors in the capital goods industry. The industry is divided into six basic sectors that feed all the consumer goods sectors and thus are directly related to every human’s day to day activities.
Automotive industry is responsible for making all the parts that go inside any automobiles. From the engines of a train to the chains on a bicycle, the automotive industry is a diverse industry with a number of very lucrative job opportunities of various descriptions.
The chemical industry, as understood by the name, makes the wide variety of chemicals that fuel multiple industries in any country. From chemicals used in soaps shampoos and toothpastes, to chemicals used in engines and air conditioners, to chemicals used in both western and herbal medicine. This is a very wide industry with not just making or perfecting chemicals but extracting them from various plants and animals and making them consumable for humans. It is the perfect industry for people who think creatively.
The electronics industry is the biggest part of the capital goods industry. The electronics industry supplies parts to other industries for them to be assembled by the other industries and utilized to become consumer electronics. These parts vary from household electronics parts to even parts for electronic cars. This is an ever-growing industry with widening branches and versatile needs.
This is an industry that makes parts for and sometimes entire machines that are categorized as heavy machinery. This industry focuses on creating machines such as the textile mill or, the paper mill, this machinery is instrumental in turning capital goods into consumer goods. This is a competitive industry that is greatly appreciates creative minds and willing to invest in innovative ideas.
The steel industry is just as if not more diverse industry as the others. The industry mainly deals with producing and creating steel bodies to be used in various industries infrastructure. But its not limited to that, the industry actively recycles steel bodies from various parts to be used again.
The textile capital industry focuses on the production of organic and synthetic fabrics. Creating fabrics from cotton, wool, silkworms, or nylon. The industry is also responsible for colouring the substances and to mix and match to create new threads to be made into fabrics. The textile industry is responsible for creating all raw material that becomes fabric.
What are the jobs available in the capital goods industry?
Better capital goods result directly in better and cheaper consumer goods which has a direct impact on every human’s life. The capital goods industry is a multi-layered industry with a whole spectrum of jobs to offer. The industry is ever evolving and always looking for fresh, young, innovative minds to help raise the competition bar further. Following are some of the most common jobs in the industry.
Assemblers are multi levelled positions for people who are crucial to the process of production, they assemble everything that the engineers design and technicians produce in pieces.
Business development managers
They are assigned with making sure that the business is not only functioning efficiently but also that the long-term goals of the business are being met. They create strategy for businesses to expand in a sustainable manner.
Computer aided design technicians
They are specialized people with high understanding of the computer aided design system and use it to not only create but plan, project, and propose designs to the company.
An electrical engineer collaborates with various technicians to formulate, plan, and supervise the construction of any electrical capital goods. They are the bane of the electronics industry and highly skilled individuals.
Engineering managers are senior level engineers who oversee the engineers’ efforts, they have high knowledge about their area of expertise and approve of any new plans that the engineers want to implement.
Industrial designers take the available prototypes and fit them to the market requirements to make them their most efficient versions. Their job description entails planning, collaborating, and executing those plans.
The marketing manager looks at the proposals and the product and makes sure that it is advertised to highlight its best capabilities. The main task of a marketing manager is to make sure that people choose his companies products over the rest.
A manufacturing technician make sure that the machinery that is used to manufacture is maintained. Manufacturing technicians also make sure that the equipment is up to date and regularly serviced so as to ensure no accidents or delays.
Quality control inspector
A quality control inspector makes sure that nothing falls behind the established standards of the industry. Quality control officers make sure that any product being released is not harmful or expired or can lead to complications. Their presences help build trust with the companies.
Research and development manager
Every company has a research and development sector, a sector based solely for the addition of new products to the company. A research and development manager oversees the entire research and development division, their jobs include evaluating different proposals to select the products to invest in and ensuring that those proposals come to fruition.
Warehouse workers are the most important aspects of any industry or company, they ensure that the products are wrapped, and ready for delivery. Warehouse workers also maintain an extensive inventory and deal with all the orders and delivery schedules.
Best paying jobs in the capital goods industry
the capital industry is a fascinating workplace with a diverse set of needs but above all, it is a very well-paying industry. Even the low paying jobs usually pay over 25,000 dollars a year, following are the top five most paying jobs in the industry.
Engineer manager 150,000 dollars
An engineer manager, a senior level position that oversees the activities of all other engineers is arguably the most well-paying job in the industry. The job is an office job and pays over 150,000 dollars a year.
Marketing manager 140,000 dollars
Marketing managers an essential to any companies’ success. A company can make amazing products but as long as they are not marketed well, it will be useless as the growth and development of a company is directly dependent on the marketing managers strategies. Marketing managers make about 140,000 dollars on average per year.
Sales manager 135,000 dollars
The sales manager leads the sales department, and the sales department is the ground force that makes the sales happen. The sales department has business and economics major who use past sales trends to predict future sales trends. The job of the sales manager then is to produce a strategy to create sales trend in the company’s favour. Sales managers make around 135,000 dollars annually.
Software developer 110,000 dollars
In the 21st century, everything is increasingly turning cyber, but that means that employees can use company resources to waste time, to counter this and many other computers related issues, companies hire software developers. At the moment, companies use software to check the productivity, block access to idle websites, keep an eye on online activity, check to see what time an employ clocked in and clocked out and such. Software developers make around 110,000 dollars per annum.
Engineers’ mechanical and electric 100,000 dollars
Engineers are possibly the most commonly found jobs in capital goods industries. The nature of the capital goods industry is such that engineers are vital to run it and although most high paying positions in any industry can only be achieved through experience, engineers even of a starting level are highly paid in the industry. Engineering jobs starting pay starts around 100,000 dollars every year and only goes up from there.
Is capital goods a good career path?
Capital goods industry is always on the lookout for new talented minds to help them evolve to be able to provide other industries better capital goods. It is a cutthroat industry with a huge available budget to fund its endeavours. The capital goods industry has a wide set of needs so there is usually a well-compensated position for everyone.
From the most unskilled labour to vocationally educated people to highly skilled individuals, all have a place in the capital goods industry. And the best thing about this industry is that there is equal opportunity for all to rise in this sector.
Growth in the capital goods industry is based on capability alone, as long as an individual is competent, they are likely to succeed in the industry
If you are someone looking to grow extensively in a short period of time while being heavily compensated for your contributions, if you are someone who is eager to widen their horizon, if you are someone who can multitask and is self-motivated to create new goods, and if you are quick on your feet and able to improve existing products into better ones then there is no place better for you than the capital goods industry.
It should be noted however, that the capital goods industry is a high paced industry and not suitable for individuals who are easily stressed and more likely to not leave your comfort zone, then the capital goods industry is not the right match for you. It is a sector best suited for ambitious self-motivated individuals who are eager to learn and revolutionize the consumer market.