Industrial Development and Economic Growth
Industrial developments have historically led to periods of economic growth. New technologies make jobs easier, faster and better, which can lead to an increase in a business’ output and an increase in profits. Industrialization in the workforce has many benefits that are more far-reaching as well. Below, we explore many of the benefits of industrial development and its positive impacts on the economy.
Industrialization Improves Profits
Adding industrial development to a business can increase the scale of production, reduce the cost of production, make improvements on the products being developed and widen the market for products and services being sold. These improvements have a great impact on the profit margin of goods and services that a business sells. It is also easier to expand or cut down on the product development or output as the market dictates.
Industrial Development = Modernization
Many industries have improved greatly over the years thanks to developments in industrialization. Adding technology or improving upon industrial methods increases output and productivity.
To provide a few broad examples, the agriculture industry has improved greatly over the years with improvements to equipment such as tractors and harvesters, as well as products such as fertilizers and pesticides. Transportation industries have allowed many businesses to sell their products too far greater distances. The Internet and related technologies have increased the speed at which many businesses operate. All of these industrial developments have led to more output, which leads to economic growth.
Industrial Development Leads to Urbanization
When an area sees an increase in industrialization, urbanization tends to follow. Industrializing a region will inspire a growth in communication and transport, which leads to more people occupying a smaller space, increasing and improving the workforce. Many other establishments set up near industrial bases, including educational institutions and schools, banking and health facilities, and restaurant and entertainment complexes. These establishments thrive due to the added population from an industrialized area, which leads to more business occurring overall.
Industrial Development of One Industry Leads to Growth in Others
Businesses need to invest in order to operate, so the increase in industrialization will leads to investments which support other industries. Additionally, an industrialized business can put out products or services which will lead to other businesses improving their own output. For example, a dairy company that adds industrial advances to increase their milk processing output will have a positive impact on nearby businesses that specialize in producing yogurt, cheese and ice cream.
Industrialization Reduces Unemployment & Poverty
An increase in industrialization can lead to lower rates of unemployment and poverty in a given region. Industrial developments lead to more jobs in both large- and small-scale businesses, which allows for more opportunity for those who may be unemployed otherwise. It also brings in employment from people near the industrialized regions, such as the suburbs and outskirts.
Industrialization Leads to a Higher Standard of Living
Industrialization leads to the development of a skilled workforce, one that includes specialized laborers skilled in specific trades and tasks. This specialization attributes to greater output, which will increase the incomes of the workforce. The increased incomes lead to a higher standard of living for the workers and their families.