Levels of Industry

By Melissa Mapes


In the Agriculture level of industry, raw materials are gathered and processed.

Example: Commercial Farming--peanut

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In the Manufacturing level of industry, a raw material is turned into a product.

Example: Turning peanuts into peanut butter. (Jif would be the manufacturer)

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The wholesaler sells products to the retailer. Example: products are stored in a warehouse until they are bought by the retailer.

Transportation takes products from the wholesaler to the retailer. Example: Trucks

The retailer sells products to the consumer. Example Jif peanut butter is taken to Kroger where it is sold to customers.


In Service, a product is marketed or advertised.

Example: Commercial advertising Jif peanut butter

1996 Jif Commercial


There are four levels of industry--agriculture; manufacturing; wholesale, transportation & retail, and service. These levels trace a raw material through the pathway it takes to become a product for consumer purchase. In the agriculture industry, a raw material is gathered & processed. This could include commercial farming, mining, or logging. Then that raw material enters the manufacturing industry where it is turned into a product for a consumer to buy. This could be a bakery, factory or furniture maker. Once the product is packaged for sale, it enters the third level--Wholesale, Transportation & Retail. A wholesaler is the warehouse that stores the products until they are ordered by a retailer; the wholesaler then sells this product to the retailer. It is put on some form of transportation to be taken to the retailer. This could be a truck, boat, or train. Finally, the retailer is the one who sells these products to us, the consumer. A retailer would be any store we buy products from--Kroger, TJ Maxx, GameStop, Famous Footwear, etc. Then, service is the final industry. Here, an item is marketed and advertised, so consumers know it is in the store. Examples are commercials, billboards, pop up ads, magazines, etc. The path of a raw material is a long one, but one consumers couldn't live without.