capital goods

Factory tools, machines

Capital goods are the machines, equipment, buildings, and tools that businesses use to produce other goods and services.

Unlike consumer goods, which are purchased for direct use, capital goods are investments in productive capacity—factory equipment, delivery trucks, computer systems.

Economists distinguish capital goods from raw materials and labor as one of the key factors of production.

The company invested heavily in capital goods to expand manufacturing capacity.

durable

machinery

Collective mechanical equipment

appliances · tractors · engines · aircraft · ships · locomotives · heavy machinery · construction equipment · medical devices · robots

investment

depreciation

Asset value reduction over time

acquisition · leasing · ROI · valuation · procurement · budgeting · write-off · useful life · residual value · payback period

manufacturing

factory

Industrial production facility

foundry · forge · mill · fabrication · tooling · automation · robotics · mass production · machining · stamping

infrastructure

bridges

Structures spanning obstacles

  • roadsPaved paths for vehicles
  • damsWater-blocking structures
  • portsShip berths or device jacks

airports · railroads · pipelines · power plants · transmission lines · water treatment · highways · tunnels · utilities · public transit

Categories
Opposites
economic use and durability

capital goodsconsumer goods

Products bought by individuals

consumables · perishable goods · perishables · soft goods · expendables

production vs. consumption purpose

capital goodsfinished goods

Manufactured items ready for sale

end products · consumer products · household goods

role in production process

capital goodsraw materials

Unprocessed production inputs

component parts · supplies · work-in-progress · inputs

Family

capital, goods

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Rated G