Pääomamainen

Pääomamainen is a Finnish adjective that translates to "capital-intensive" in English. It describes an industry, process, or business that requires a significant amount of capital investment relative to its labor input. This means that substantial financial resources are needed to acquire and maintain the necessary machinery, equipment, technology, and infrastructure.

Industries often characterized as pääomamainen include manufacturing, mining, energy production, and telecommunications. These sectors typically involve large-scale operations, expensive specialized machinery, and extensive research and development. The high upfront costs are a defining feature, and companies operating in these areas often rely on substantial borrowing or equity financing.

Conversely, labor-intensive industries, such as services, agriculture, and handicrafts, require a greater proportion of human labor compared to capital. In pääomamainen industries, automation and technological advancements often play a crucial role in production, leading to higher output with fewer workers. The long-term profitability of such enterprises often depends on efficient capital utilization and economies of scale.