What are the contemporary factors of production

Industrial production includes several stages: preparation of the equipment, processing of raw materials, direct manufacturing of industrial products, their storage and transportation to the consumer. An important place in the production process are also project activities and marketing research. At any stage of the manufacture of the products require certain resources, which are the main factors of production.

The most important factor of modern production continues to be human labor as the sum of the abilities of the person. This economic category has a direct impact on the efficiency of production activities. Through the labor of workers exposed to source materials, convert them, turning in the final product. The labor process is characterized by the performance and intensity. In modern conditions of production decreases the share of physical labor as the most difficult and monotonous operations are transmitted to machines and mechanisms.

In terms of market management is another factor of production is capital. Under the human capital is meant the knowledge and skills of employees. Physical capital is embodied in structures, industrial equipment, raw materials. This also includes certain production assets, which are necessary for the organization of the production process. Still of crucial importance for industrial plants is the ground.

Manufacturing in the twenty-first century depends more on information than a few decades ago. Accurate data requires the entrepreneur to identify the competitors, assess market position and dynamics of the environment. Timely and accurate information gives you the opportunity to establish a production that will use certain demand. This factor of production is often called information capital.

For business organizations, producing goods and services requires the ability to entrepreneurship. This category is also related to modern factors of production. For the entrepreneur, important organizational skills, knowledge of the industry and personal qualities: a tendency to reasonable risk-taking, resistance to stress, ability to be a leader. For the success of modern production the entrepreneur's personality is sometimes crucial.

Current production is impossible without fresh technological solutions without the use of the latest achievements of science and technology. The decisive factor here are not fundamental and applied research that are explicitly designed to solve practical problems. Large enterprises are widely used scientific research and development to improve the competitiveness of products.