What is the difference between factory and industry?
The economy of any country depends on two important factors – factory and industry. Therefore the two are intertwined even though they have different meanings and uses. A factory is a building where manufacturing takes place. An industry is the production of products that contribute to an economy.
Factories are warehouses and are very visible. Industry is an abstract concept of which factories are a part. Huge amounts of products are stored in these warehouses for sale and this brings money into the economy.
In order for a factory to function it needs to have human resources and machinery, as well as funds for the start up and continuation of the production. There are four main sectors in industry – primary, secondary, tertiary and quaternary. Economics and industry have a closer relationship than do factory and industry. This is because people move through various sectors of industry depending on the economy of a region or a country.
Factories are responsible for creating the growth that develops in an economy. Industry makes use of this growth to advance the economy and the quality of life for the people of the country. There needs to be a blend of both factories and industries in order for an economy to flourish and be prosperous.
The development of a factory in a region will lead to a growth in industry because there will be spin-off industries develop as a result of the products manufactured in the factory. For example, trucking companies will have more business as a result of the transportation of the products and there will be other companies needed to produce the packaging for the products. In this way the development of one factory can create many jobs and bring people into the region.
As long as industry continues to grow and develop, factories will develop to meet the needs. When an industry stops growing this affects the growth of factories and in some cases many of them will have to shut down when supply exceeds demand. As long as an industry is growing this means there is more need for factories to keep up with the demand.
Industrial development has its roots in production and it is the factories that provide this production.