pääomaintensiiviset

Pääomaintensiiviset is a Finnish term that translates to "capital-intensive" in English. It refers to industries or businesses that require a significant amount of capital investment to operate or produce goods and services. This high capital requirement is typically associated with the need for expensive machinery, advanced technology, large-scale facilities, or extensive research and development.

Industries often characterized as capital-intensive include manufacturing, energy production (oil, gas, and electricity), telecommunications, transportation (airlines, shipping), and mining. In these sectors, the initial outlay for fixed assets is a substantial portion of the total costs. Consequently, companies operating in capital-intensive industries often have high fixed costs and may require substantial economies of scale to achieve profitability.

The nature of capital-intensive businesses means they can be more susceptible to economic downturns, as the fixed costs remain even when demand decreases. Conversely, once the initial investment is made, the marginal cost of producing additional units can be relatively low, leading to significant profit margins if capacity is fully utilized. Furthermore, the high barriers to entry, due to the substantial capital needed, can sometimes lead to less competition within these markets.