If you want to know what companies are in the basic industries field. This article is for you. Companies in the basic industries field supply raw materials for other companies to manufacture or produce goods. This is one of the most important industry sectors in the United States, and it is vital to the global economy.
If you’re looking for a new job, deciding on a college major, or considering companies for your investment portfolio, you’ve probably come across the term “basic industries.”
According to the U.S. Bureau of Labor Statistics, there were over 6 million American firms classified as “basic industries” by the NAICS (North American Industry Classification System) in 2019, employing over 136 million people. Companies in this industry are key industries, accounting for over 300 stock mutual funds, index funds, and exchange-traded funds on the market.
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But what companies are in the basic industries field? This article explains what qualifies a company for the basic industries sector, deconstructs industry subcategories, and investigates the question, “Is a job in basic industries a good career path?”
What qualifies a company for the basic industries sector?
In a nutshell, companies in the basic industries field provide raw materials for other industries to fabricate or manufacture goods. Fundamental industries begin with the exploration or discovery of raw materials and end with their extraction and processing.
Basic industries are one of the most important sectors in both underdeveloped and developing economies, as they provide the majority of materials for the goods and services that people use.
What types of industries are classified as basic industries?
Companies classified as basic industries include mining, basic chemical production, agriculture, and forestry, as well as metal ore, oil, and gas extraction. These firms account for a wide range of raw materials required for global manufacturing.
For example, grain grown and processed in the Midwest is a product of the United States’ basic industries that has an impact on the global market. Although some of this product is consumed in the United States, the vast majority of corn, soy, and wheat grown in the United States is destined for export. These “raw materials” are sold to countries with insufficient grain production, netting $396 million in total export sales in 2020.
Are all businesses that work with raw materials considered basic industries?
All basic industry companies work with raw materials, but not all raw materials companies are considered basic industry companies.
A mining company, for example, would be classified as a basic industry company because it produces raw materials. Despite the fact that a jewelry company works with raw mined metals, the company manipulates those raw materials to create a finished product that is sold to consumers. As a result, the jewelry store would be classified as a business retailer, a non-basic industry.
Another example would be the manufacture of certain chemicals. A basic industries company is one that manufactures basic chemical solutions that do not require engineering or complex processes.
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Companies that manufacture and process basic chemicals to create end products, on the other hand, are not considered basic industries. One example is the manufacture of industrial fertilizers and paint additives, both of which require complex manufacturing.
Company types in the basic industries field
The following are some examples of basic industry companies in various subindustries.
- Oil and gas extraction
- Basic chemical production
- Mining and metal extraction
- Agricultural
- Forestry and logging
Oil and gas extraction
Oil and gas extraction businesses operate and develop oil and gas. These operations also include crude petroleum production, mining, oil extraction from oil shale and oil sands, natural gas production, and hydrocarbon liquid recovery.
These companies job descriptions may include the following:
- Understanding the crude petroleum exploration and feasibility stage
- Well-drilling, completion, and equipping
- Separators, emulsion breakers, desilting equipment, and field gathering lines are all in use.
- All other activities in oil and gas preparation up to the point of shipment from the producing property
The extraction of oil and gas is a critical basic industry. Some aspects of this subsector require highly specialized processes performed by trained engineers or petroleum geologists.
The three oil and gas industry segments
The extracted gas and oil are processed and refined by three different types of companies, each of which is responsible for a different step in the refinement process.
- Upstream. The primary focus of an upstream company is the search for oil and gas deposits, as well as the use of extraction processes such as drilling or other methods. Upstream companies also provide related services such as rig operations, feasibility studies, and chemical supply extraction.
- Midstream. Midstream companies operate pipelines that transport gas or oil from wells (upstream) to homes and businesses (downstream) (downstream). Midstream operations are classified as non-basic industries.
- Downstream. This stage of the process also includes non-basic industries. The oil and gas are almost ready to be sold at this point. However, before the fuel is sold, downstream companies purify the oil and gas even further.
Basic chemical manufacturing
The extraction of organic and inorganic raw materials is required for the production of basic chemicals. The production of basic chemicals distinguishes this subsector. These industries generate new and valuable compounds that are essential to the chemical industry as a whole.
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Not all chemical manufacturers are classified as basic industries. Synthetic chemists create chemicals that are complex in nature and are classified as non-basic industries. Pharmaceuticals and numerous other subsectors would be excluded from the definition of basic chemicals.
Chemicals and natural resources are two intertwined industries that are critical components of modern economies. The chemical industry has a large impact on many other industries, including plastics, food, automobiles, and glass, to name a few.
The mining industry
Minerals are extracted from naturally occurring underground sources in the mining industry. Underground or surface mining, well operation, and seabed mining are examples of extraction methods.
In 2021, revenue from the top 40 global mining companies, which account for the vast majority of the industry, was $925 billion (all figures are in US dollars). Mining and quarrying revenue is expected to be $103 billion in 2023, implying a 3.93% annual growth rate in this subsector (CAGR 2023-2025).
The rare earth
Various industries around the world rely on the availability of unearthed minerals and rare earth commodities. Precious metals such as gold and silver are frequently the only material options for many high-tech companies; these metals continue to be a driving factor in global finance.
China was the world’s largest producer of rare earth in 2021, accounting for 60% of the global market. This figure has increased slightly in comparison to the country’s 2020 market share of 58.3%. The United States rare earth production share, while second in the world, was much lower in 2021, accounting for 15.35% of the global market share.
Production of crude steel
The world crude steel production for the 64 countries reporting to the World Steel Association in 2021 is expected to exceed 158 million metric tonnes. Although the Covid-19 pandemic, which began in 2020, did not cause a significant drop in output, a drop in steel prices impacted revenues at companies such as ArcelorMittal and Nucor Corporation. Although the Covid-19 pandemic did not cause a significant drop in output, a drop in steel prices impacted revenues at companies such as ArcelorMittal and Nucor Corporation.
Much of the world’s steel production does not come from the United States, but rather from China, which continues to be the world’s largest steel producer. China produced 86.2 metric tonnes of crude steel in 2021, compared to only 7.2 metric tonnes in the United States.
Examples of mining and metal extraction careers
A geologist is an example of a common job in this basic industries subsector. The work of a geologist entails collecting samples from mining sites. All aspects of the mining life cycle necessitate sampling and monitoring.
Other basic metal production companies use metallurgic techniques to smelt or refine ferrous and precious metals, as well as other nonferrous metals (from ore or scrap). Smelting and refining produce material for rolling, drawing, and extruding into plates, sheets, strips, bars, rods, wire, tubes, and other basic metal products.
Agricultural and food sectors
Farming is one of the oldest industries, involving tasks such as cultivating crops and raising livestock for food or biofuels. Corn, soybeans, hay, rice, and wheat are major crop commodities in this industry subsector.
Cattle and dairy farming, hog and pig farming, poultry and egg production, and sheep and goat farming are the mainstays of the livestock industry.
Global agricultural supply chains
Because of the rising global population and the resulting demand for food and agricultural products, agricultural productivity is becoming increasingly important to ensure a sustainable global food supply. Agriculture is also a significant export industry, contributing to a thriving economic chain.
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The Russian invasion of Ukraine in February 2023, as well as the effects of the COVID-19 pandemic, have both had an impact on global food commodity production. Prices have nearly doubled compared to the global food crisis of 2010-2011 due to supply and demand.
Smart farming
Recent technological advancements have increased agricultural productivity. Smart farming and agri-robotic techniques have emerged as two of the most influential agricultural trends in decades.
These techniques assist farmers in increasing efficiency and providing more sustainable resource use. Furthermore, the demand for methods such as vertical farming is expected to rise, reducing the amount of land required for agricultural purposes.
Forestry and logging subsector
Timber is grown and harvested by industries in the forestry and logging subsector. This can be on a long production cycle (ten years or more) or on a short production cycle. Short-cycle forestry or logging companies (such as Christmas tree growers) use different production processes than long-cycle forestry or logging companies, resulting in those that are similar to crop production.
The forest and logging subsector contributes significantly to the US economy. These collected raw materials can then be processed for use by other paper or pulp companies.
In contrast to other industries, each region of the United States typically specializes in different aspects of this subsector. Softwood lumber is primarily produced in the Western and Southern United States, whereas hardwood lumber is primarily produced in the Eastern states. The paper and pulp industries rely on the purchase of these products.
Examples of Forest and Logging Career Pathways
The forest industry includes a wide range of occupations, from natural resource experts working in the field to statistics and financial professionals working in offices. A good career in the forestry and logging industries could involve the study of timber resources.
What companies are in the basic industries field?
There are many companies in the basic industries field that would make for good career options if you are looking for a thriving career path.
- The oil and gas industry: The basic industries sector includes three of the largest companies in the United States, all of which are in the oil subsector. ExxonMobil, Chevron, and Marathon Petroleum are the three companies. ExxonMobil’s revenues were nearly $307 billion in mid-June 2023.
- Mining Industry: The mining industry Newmont, Southern Copper, and Freeport-McMoRan are three of the largest mining companies. In 2021, US mines produced approximately $90.4 billion in mineral commodities, a $9.7 billion increase from the previous year’s total of $80.7 billion.
- Chemical Industry: The chemical industry In the chemical industry, Dow led the market in 2020 with $38.5 billion in sales and projected a 22% increase to $55 billion in 2021. LyondellBasell Industries and DuPont are two other industry leaders.
- Agriculture and Forestry: Forestry and agriculture Cargill, Archer-Daniels-Midland, and Bayer Crop Science were the top three agricultural producers in the United States as of 2021. Cargill earned nearly $5 billion in net income, a 63% increase over the previous year.
Is working in the basic industries a good career path?
Most positions in a basic industry sector can be a great option for a growing career, as many of these positions involve a wide range of work types rather than just one. Many of these companies offer a wide range of positions, giving you plenty of options.
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The tables below show employment data from various subindustries. These tables contain information that can help you decide whether a basic industry career path is right for you.
Basic industry |
Subsector |
Firms |
Establishments |
Employed individuals |
Agriculture, forestry, fishing, and hunting |
Forestry and logging |
8,252 |
8,366 |
51,928 |
Fishing, hunting, and trapping |
2,925 |
2,944 |
7,316 |
|
Support activities for agriculture and forestry |
10,962 |
11,507 |
105,323 |
|
Mining, quarrying, and oil and gas extraction |
Oil and gas extraction |
4,874 |
6,139 |
108,128 |
Mining (except oil and gas) |
3,284 |
5,857 |
177,656 |
|
Support activities for mining |
10,601 |
13,081 |
340,956 |
Is it difficult to get a job in the basic industries?
Because of the variety of job opportunities available, career paths in basic industries do not have a set timeline. The time it takes to find work is determined by the type of job and the rate at which you learn. Entry-level jobs may require little training, whereas more technical jobs may require more than eight years of education.
Petroleum geologists, for example, typically require at least a bachelor’s degree for entry-level positions. Furthermore, geoscientists may be required to obtain a license in order to provide public services in some states. It will take several years to complete the necessary education and licensing.
Certain positions in some companies require on-the-job knowledge that cannot be learned in educational institutions. A career path of this nature necessitates company experience in order to gain the in-depth understanding required to fill the position.
How many jobs are created in the United States by the basic industry sectors?
The tables below are from the United States Bureau of Labor Statistics and provide statistics on employment, job creation, openings, and hires in basic industry firms.
Data series |
Average hourly wage |
Average annual wage |
2021 employed individuals |
Agricultural equipment operators |
$16.54 |
$34,410 |
14,910 |
Farmworkers and laborers, crop, nursery, and greenhouse |
$14.98 |
$31,150 |
210,380 |
First-line supervisors/managers of farming, fishing, and forestry workers |
$25.33 |
$52,680 |
13,960 |
Logging equipment operators |
$21.85 |
$45,460 |
19,290 |
Truck drivers, heavy and tractor-trailer |
$21.55 |
$44,820 |
14,160 |
In addition to the increase in the number of jobs available in basic industries, the unemployment rate has dropped from 9.4% in February 2023 to 3.1% in May 2023.
How to Get a Job in a Basic Industry Company?
If your career interests align with the positions listed above, you might want to consider working in one of the basic industries. Here’s a step-by-step guide to help you get started.
- Select the type of basic industry in which you are interested. There are various types of basic industry companies, so do your research to find one that matches your interests or skill set.
- Get a good education. Find out what education is required for the job type you’ve chosen in the industry. You can get an education either online or in person. Some jobs require only entry-level qualifications, whereas others in basic industries require highly trained personnel with a business background.
- Make connections with people in your industry. Attending seminars, workshops, or industry-specific events will help you build and maintain relationships with people who can help you advance your career. You can also network on social media sites like LinkedIn and GitHub.
- Customize and target your resume. Your resume is an important part of your success in obtaining a job interview. Rewrite your document to correspond with each job description, incorporating keywords and phrases from the job postings. Do your homework to determine what specific skills you already have to include in your resume, and don’t use the same resume for every job you apply for.
- Understand the responsibilities of your future position. Confidence is an asset if you want to work in the basic industry field. Prepare for the interview so you can confidently answer questions about the job you’re applying for. This will demonstrate to your potential employer that you are prepared to start your new job right away.
Conclusion – What Companies Are in The Basic Industries Field
- Companies in basic industries supply the raw materials required for other industries to operate.
- Oil and gas extraction, basic chemical production, mining, metal and mineral extraction, agriculture, forestry, and logging are the major subsectors in basic industries.
- A job in the basic industries is potentially a good career choice because it contributes significantly to employment in the United States and is a growing source of revenue for many businesses.
FAQs – What Companies Are in the Basic Industries Field?
Are engineering skills required for jobs in basic industries?
Although some fields of work in basic industries companies require engineering skills, most jobs do not require an engineering education. Many positions in management, administration, finance, information technology, computer numerical control, health and safety officers, and hands-on laborers do not require such knowledge.
What are the most easily obtained jobs in the basic industries field?
In the basic industries field, entry-level jobs are typically the easiest to obtain. These positions are available in a wide range of basic industries. Keep in mind, however, that you will almost certainly need to pursue some form of higher education in order to be promoted to certain positions.
What Companies Are in The Basic Industries Field?
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