The difference between backward industry and sunset industry

Backward industries are backward in the quality or variety of products produced by factories, while sunset industries are facing factory closures, workers' unemployment and so on.

Backward industry

1, production capacity: production capacity.

2. Production capacity refers to the number of products or raw materials that an enterprise can produce under the given organizational and technical conditions for all the fixed assets that it participates in the production during the planning period.

3. Production capacity is a technical parameter reflecting the processing capacity of an enterprise, and it can also reflect the production scale of an enterprise.

The reason why every enterprise executive is very concerned about the production capacity is that he needs to know whether the production capacity of the enterprise can meet the market demand at any time.

5. When the demand is strong, he needs to consider how to increase production capacity to meet the growth of demand; When the demand is insufficient, he needs to consider how to reduce the scale, avoid overcapacity and minimize losses.

6. There are many different expressions of production capacity in practical use, including process design ability, effective ability and utilization ability. The state will promote the elimination of production capacity by strengthening the policy restraint mechanism and improving the policy incentive mechanism.

declining industries

1, the market demand drops.

The biggest feature of the sunset industry is that the market is saturated, and even there is a significant decline. For example, black-and-white TVs and functional mobile phones used by the elderly all belong to the sunset industry.

The number of employees has decreased.

When the overall market demand of an industry decreases, fewer and fewer enterprises enter this industry and fewer and fewer people are employed in this industry.

3. Lack of technological innovation.

When the technological innovation of an industry is weak, it is possible that a technology has been used for decades and innovation has not progressed. Everyone uses outdated technology, so the goods have not changed for many years.

There are better substitutes in the market.

The so-called sunset industry is actually a sunrise industry from the beginning. The emergence of this industry is because there is demand in the market, but when other more competitive alternative products appear in the market, these traditional products will be gradually replaced and then become sunset industries.