Any firm that combines several raw materials to make a single product is referred to as the synthetic industry. You can find manufacturing firms that do this around you. Starting from cake baking to paint making.
Definition of Synthetic Industry
Synthetic industry means a group of manufacturing firms that combine more than one raw material in the making or processing of a product.
A synthetic firm is a manufacturing firm that utilizes various ingredients to make one product.
There are different firms in this industry. However, the main purpose is that they are making one product by mixing two or more raw materials. This is different from the analytical industry where one raw material can be used to make several products. Let’s just say, this is the opposite of the analytical industry.
One example of a synthetic industry is bread-making. To make bread (a single product), several ingredients are combined. You need flour, sugar, salt, butter, yeast, flavor, and so on. These ingredients are mixed and covered in an oven to bake a single product, bread.
Another example is soap making. Soap is produced by mixing water with other chemicals. The end product becomes soap. Other products from this industry include paper, brick making, food production, and more.
Importance of Synthetic Industry
It provides jobs. This industry employs many individuals either as manual laborers or professionals.
It is a source of entrepreneurship. Unlike the analytical industry, the synthetic industry does not involve a huge capital base. Many individuals with a spirit of entrepreneurship have pursued establishing small businesses in this industry.
It adds to the Gross domestic product. GDP is the total output/revenue from all firms in a country. Companies in the industry have earned revenue and have supported the gross domestic product of the country.
The synthetic Industry combines different raw materials to make a single product. Examples of products in this industry are paper making, brick making, food production, and more. Moreso, this industry has been a source of entrepreneurship for small businesses.