Industrial Sales

Types of industrial goods and product groups

Types of industrial goods are purchased by industrial companies for further processing or usage in manufacturing and other business activities.

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Marketers have divided products into two categories based on the types of customers that purchase them. Types of these products are; consumer goods and industrial goods. Consumer goods are items purchased for personal consumption. However, types of industrial goods are bought for further processing in a business operation rather than for personal usage.

Industrial goods segment

Instead of producing products and services that are directly consumed by individuals, the industrial goods sector produces assets that are used by other industrial companies in manufacturing, technology and business services.

Aerospace and defense, residential construction, electrical equipment, manufacturing, construction, engineering, industrial technology and industrial services segments are the constant customers for types of industrial goods.

The industrial goods business is cyclical in nature. Demand for industrial producing is the primary driver of the sector’s performance. During recessions, economic activity in these areas decreases dramatically, limiting requirement for industrial goods.

However, because to the sector’s diversity of subsectors, not all enterprises in the sector reduce production at the same time. Certain subsectors may lag behind economic cycles, while others may outperform them. Resilience is frequently demonstrated by waste management companies and industrial conglomerates. They maintain reasonably stable revenue streams throughout economic downturns.

types of industrial goods depends on the industry segments

Three types of industrial goods

The primary distinction between a consumer good and an industrial good is the purpose for which it is purchased. Even the same object might be labeled as both consumer and industrial depending on why a buyer is purchasing it.

If you buy a vehicle for personal use, it is a consumer good; however, if you buy it for use in your commercial organization, it is an industrial good. Materials and parts, capital items, and supplies are the three types of industrial goods.

Materials and parts

Raw Materials : Natural types of industrial goods

Raw materials are the base group of industrial goods. Natural and agriculture -farm- products are the most common raw materials. Small producers mostly produce agriculture products such as wheat, cotton, fruits, vegetables, and cattle. They sell their goods through distribution channels. These farm goods are processed and sold by the intermediaries.

Natural industrial products, on the other hand, have a bigger volume but a lower unit price because manufacturing costs are split by the amount produced. These types of industrial goods naturally exist on the earth and have to be extracted.

Natural goods are the high-volume types of industrial goods

Moreover, natural industrial goods require a lot of transportation. Natural industrial goods like petroleum, iron and copper ore, etc have to be transported from one corner of the world to another. They are produced by few but large scale producers. Leading natural product producers of the world market their products to industrial buyers directly.

Manufactured materials and parts

Manufactured materials and parts are the most common group of the types of industrial goods. Component materials and parts are the most common products of manufactured materials and parts classification. Component materials such as copper or cotton are further processed, such as cotton being woven into clothes for sale.

Manufactured parts, on the other hand, do not require further processing and are included into the finished product. For example, a tire purchased by Mercedes becomes a part of one of their vehicles. The majority of manufactured materials and parts are sold directly to industrial users.

In terms of selling manufactured materials and parts, the most important factors are pricing and service. In such a scenario, branding and advertising activities become less crucial.

manufactured parts and capitals

Capital items

Capital items are the major group of the types of industrial goods that support the buyer’s production operations or industrial business activities. This category primarily includes installations and accessory equipment.

Buildings and fixed equipment are examples of installations. Buildings such as factories, offices, and warehouses are classified as installations, as are stationary equipment such as lifts, generators, and so on.

Installations are among the most major purchases undertaken by a business, thus there may be a substantial decision-making process before the final purchase. Because the purchase of installations requires a significant expenditure, corporations or purchasers assess a number of criteria before making the purchase.

The most expensive types of industrial goods

Furthermore, purchasers acquire them straight from the producers. Portable factory equipment, tools, and office equipment have a shorter life cycle than installations. They do not form a part of the finished product, but rather aid in the manufacturing process.

Vendors of accessory equipment rely on intermediates such as distributors and wholesalers to sell their items. It is mostly due to the fact that, while clients are geographically separated, they are numerous, and purchase amounts are often small.

industrial goods warehouse

Industrial supplies

Industrial supplies are one of the types of industrial goods that do not enter the product at all. Supplies include operating supplies as well as repair and maintenance items. In some ways, supplies are similar to convenience items (consumer goods), which implies that their acquisition does not necessitate a great deal of thought and comparison on the part of the buyer.

Operating supplies such as coal, printing paper, pencils, or repair and maintenance products such as nails and brooms do not necessitate a significant amount of purchasing effort on the part of the buyer.

examples for types of industrial goods

Examples for types of industrial goods

Types of industrial goods are the products used to produce other products, whereas consumer goods are completed goods bought and used by consumers. They consist of machinery, manufacturing facilities, raw materials, and any other material or component that is used by industries or businesses.

Abrasives & Abrasive Products Drums & Barrels Lifting Equipment Robots
Acids Dryers Locks Rolling Bearings
Actuators Electric Generators Lubricators & Lubricating Systems Rolls & Rollers
Adhesives Electric Motor Components Machine Feeders Rubber
Aircraft Parts & Components Electric Motors Machine Knives & Blades Rubber Making & Rubber Working Machinery
Alcohols, Ethers & Epoxides Electrical & Electronic Cables Machine Tool Attachments Rubber Products
Alloys Electrical & Electronic Connectors Machine Tooling Safety Equipment
Applicators Electrical Components Machining Services Saw Blades
Bags Electronic Components & Devices Magnets & Magnetic Assemblies Saws
Balls Electroplating Services Measuring Instruments & Gauges Scales
Batteries Enamels Metal Finishing Services Screening & Filtering Screens
Bearings Engines Metal Foil Seals & Gaskets
Boilers Esters Metal Forming Machinery Sensors & Transducers
Bolts & Screws Fans & Blowers Metal Powder Separators
Bottles, Cans & Jars Fasteners Metal Sections & Extrusions Shoe Parts & Accessories
Boxes, Bins & Containers Filling Machinery Metal Treating & Finishing Machinery Software
Brakes Filters, Strainers & Related Products Metal Tubes & Tubing Solder & Solder Products
Brushes Flooring Metalworking Machinery Spindles & Shafts
Burners Flow Meters Microwave Components Springs
Bushings Food Machinery & Equipment Milling Machinery Steam Handling Components & Devices
Capacitors Food Processing Chemicals & Additives Mixers Steel
Caps, Plugs & Closures Forgings Monitoring Equipment Steel Sheet, Plate & Strip
Castings Foundry Machinery & Equipment Nails Switches
Ceramic Powder Furnaces, Ovens & Kilns Nozzles Tanks
Chemicals Furniture Components & Fittings Nuts Tapes
Chucks Gas Plants & Equipment Packaging Technical Ceramics
Clamps Gauges & Indicators Packaging Machinery Test Chambers
Cleaning Devices & Accessories Gears Packing Textile Machinery
Clutches Glass Paints Textile Machinery Parts & Accessories
Coating Machinery Gloves Pallets & Related Items Textiles, Fabrics & Cloth
Coating Services Grinders Paper Thermal Insulation Products
Compressors Grinding Mills Pipe & Tube Fittings & Accessories Thermometers
Computers Hand Tools Plastic & Rubber Foam Timers
Controls Heat Exchangers Plastic Manufacturing Chemicals Tools & Dies
Converters & Inverters Heaters & Heating Elements Plastic Materials (Semi-Finished Products) Transformers
Conveyor Components Hinges Plastics Machinery Transmitters, Transponders, Receivers
Conveyors & Conveyor Systems Hoists & Winches Pneumatic Tools Tubes & Tubing
Coolers & Coolant Systems Hooks Pneumatics & Pneumatic Components Ultrasonic Equipment
Cordage (Rope & Twine) Hydraulics & Hydraulic Components Polymers & Resins Valve Components
Cranes Indicators Power Supplies Valves
Cutting, Shearing & Slitting Machinery Industrial Alarms Power Tools (Electric) Washers
Cutting, Shearing & Slitting Services Industrial Gases Presses Wax
Data Loggers & Recorders Infrared Components & Devices Pulleys Webbing
Detectors Inks Pumps Welding Accessories & Supplies
Dies & Cutters Knobs & Handles Racks & Shelving Welding Services
Dispensers Labels & Tags Rectifiers Wheels & Castors
Doors Lamps & Bulbs Relays Wire
Drill Bits Lasers Resistors Wire Cloth
Drilling & Boring Machinery Lathes Rings Wood & Wood Related Products
Drives, Gearing & Gearboxes Lead Rivets Woodworking Machinery