In Market Research
Let's discuss this economy sector and companies operating in basic industry field.
Basic industries, such as oil, steel production and mining, are essential to production.
- Basic industries provide the materials and energy sources essential to production.
- Basic industries produce raw materials such as petroleum, steel, and chemicals.
Companies in these sectors often sell to manufacturers rather than consumers. These industries offer diverse, well-paid, and sought-after jobs.
In 2019, the United States exported a total of $1.6 trillion in goods, making it the world's second largest exporter. Basic industries, including key sectors such as mining, agriculture, and energy, are some of the largest US exports.
For example, the country's largest export is mineral fuels, including petroleum. These fuels account for a large percentage of total US exports and billions of dollars in annual revenue. Organic chemicals are also a major export, with annual sales in the billions of dollars.
The basic industries field: Growth rates by industry in percentage change compared to previous year, Quarter III 2022. Source: UNIDO
What are basic industries
The basic industry, also called the base industry, is the industry responsible for obtaining and processing raw materials from their most primary phase and thus creating semi-finished products that will later be used by other industries to produce final consumer goods.
These tend to be heavy industries as they consume very large quantities of raw materials. In addition, this type of industry usually requires a very large capital investment given the amount of resources they have to convert.
Basic industries characteristics
There are some aspects to be considered in relation to this type of industry. Despite the wide range of products and services that are produced in the underlying industries, there are some common characteristics
What companies are in the basic industries field: Raw materials
The vast majority of these industries are characterised by the use of different raw materials at the outset.
Basic industries are responsible for the production of semi-finished products, so that other industries use them later to produce final products.
Greater investment, less competition
These industries are designed to produce heavy equipment, so the initial investment is very high. Very few companies are interested in entering this type of industry (or cannot afford to do so), so there is little competition.
Highly skilled personnel
While other simpler industries can survive and function with any level of skill, workers in these industries must be well trained to work efficiently.
Basic industries field: Environmental impact of steel production
Because of the amount of waste they produce, whether it is gases released into the air or waste entering rivers, these industries can pose the greatest threat to the environment.
Types of basic industries
There are many basic industries; however we can divide them into mining, steel, iron and steel and chemicals.
Extractive industries are those which, as the name suggests, are responsible for extracting raw materials directly from nature. This group includes industries such as mining, oil or forestry.
What companies are in the basic industries field: Mining
Mining is an industry dedicated to the extraction of minerals that are found directly in the ground or subsoil.
It can be divided into metal mining and non-metallic or quarry mining. Metal mining is usually used for the manufacture and production of industrial products, while quarrying is used for building materials, finishing, etc.
Number of persons employed in Mining industry in European Union by enterprise size class. Source: Eurostat, 2019
Well-known companies in Basic Industries field
- BHP Group Limited
- Southern Copper
- Dow Chemical Company
- Newmont Mining Corporation
- PPG Industries
- Procter and Gamble
- Valero Energy
- Schneider Electric
- John Deere
Examples of companies in the basic industries field
Basic industries jobs F.A.Q.
How many jobs are there in the basic industry?
The Bureau of Labor Statistics (BLS) reports that 173,070 people will work in mining, 106,440 in the oil and gas industry and 348,500 in the paper industry in 2021.
Essential industries can offer a variety of opportunities for technical professionals. In 2021, there were 2,660 jobs in the paper industry and 3,790 in computer and math jobs in the oil and gas industry. According to the BLS, in the same year, 10,780 people were in construction and engineering jobs in the oil and gas industry and 4,240 in mining.
How much do basic industry pay?
Many basic industries pay their professionals competitive wages. For example, in the paper industry, the median software developer salary in 2021 was $102,190, while the median engineer salary was $95,310.
In the same year, according to the BLS, a median computer and information analyst in the oil and gas industry earned him $125,450, a computer network support specialist he earned $90,500, and a computer network architect $128,960. In mining, software developers earned a median of $95,990 and computer systems analysts earned $102,360.
Jobs in the basic industries field
Is working in a basic industry a good career path?
Basic industries produce goods, materials, and services essential to economic growth and stability. Industries such as energy and manufacturing are evolving as technology improves and the demand for clean energy increases, but the backbone industry is essential for manufacturing, which is a virtually integral part of the economy.
Many basic industry careers are well paid and always in demand. Job seekers can find jobs in industries such as metalworking, oil and gas exploration, non-metallic mineral products manufacturing, agriculture, and chemical manufacturing.