industrial goods

Definition:
Goods destined for use in producing other goods or rendering services, as contrasted with goods destined to be sold to ultimate consumers. Certain goods which fall into this category may also be classified as consumer goods, e.g. paper, typewriters, chairs, fuel oil etc. Where such an overlap exists, the purpose for which the product is bought determines its classification. Industrial goods fall into four main categories: (a) Raw materials: those industrial materials which in part or in whole become a portion of the physical product but which have undergone no more processing than is required for convenience, protection, economy in storage, transportation or handling. Threshed grain, natural rubber and crushed ore fall into this category. (b) Equipment: those industrial goods which do not become part of the physical product and which are exhausted only after repeated use, such as major installations or installations equipment, and auxiliary accessories or auxiliary equipment. Installations equipment includes such items as boilers, presses, power lathes, bank vaults etc., while auxiliary equipment includes trucks, office furniture, hand tools and the like. (c) Fabricated materials: those industrial goods which become a part of the finished product and which have undergone processing beyond that required for raw materials but not so much as finished parts. Steel, plastic moulding powders, cement and flour fit this description. (d) Supplies: those industrial goods which do not become a part of the physical product or which are continually exhausted in facilitating the operation of an enterprise. Examples of supplies include fuel, stationery and cleaning materials.

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