Which aspect is highlighted in capital-intensive industries?

In capital-intensive industries, the defining characteristic is the heavy investment in physical capital. These industries require substantial financial resources to purchase and maintain expensive equipment, machinery, and infrastructure to produce goods or services. This high level of investment is necessary because the production processes often involve large-scale operations that cannot be efficiently executed with minimal equipment.

For example, industries like manufacturing, oil extraction, and transportation typically need significant upfront capital for buildings, machinery, and technology systems. This reliance on physical assets affects how the business operates, pushing towards efficiencies gained through the utilization of advanced machines rather than labor-intensive operations. A robust physical capital base is crucial for achieving economies of scale and remaining competitive.

In contrast, areas like low overhead costs, high human resource utilization, and minimal reliance on technology do not align with the nature of capital-intensive industries, where the focus is predominantly on capital assets and equipment rather than labor or low-cost structures.