Difference between Equipment and Materials

The industrial production is currently at its peak and we are seeing products being produced at a phenomenal rate. This has to do with the fact that the industrial production methods have improved and the population of the world has gotten out of control in the last few decades. To cater to the needs, the industries are working non stop. We often come across terms such as materials and equipment when there is a discussion about the production of goods. Both play an important role in the manufacturing process and in the absence of any one of the two, the production will simply not be possible. Materials are the input that is done in the production process so that the products can be manufactured. They are the building blocks of the production and are generally referred to as raw materials which are made into finished goods. The equipment is the machinery and the allied tools that are engaged in order to convert the raw materials into the finished goods. Without the help of the right equipment, it will indeed be very hard to produce good quality products.


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    These are the tools that are used in order to produce the finished goods. They generally have a long shelf life and may need to be replaced or repaired every once in a while.

    These include machinery and tools that are required for production as well as the production aides such as the computer programs that control the actual production.

    These are treated as assets in the books of accounts and depreciated over a period of time. Necessary updates in equipment are a must for any industry to thrive as this equipment is the backbone for any industrial production.

    - Image Courtesy: made-in-china.com

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    Materials are the raw products that are transformed into finished goods. This is done through an industrial process and it varies with each type of product. A certain product may need several kinds of materials in order for it to be manufactured. These materials can be anything from to your basic raw materials all the way to more sophisticated items that are crucial in putting together a particular product.

    These also include the essentials for production that run the industry such as gasoline and other fuels. The term is also used for office equipment that is an indirect resource in production.

    The materials are perishable in nature and either they are consumed or their form is changed after the production process.

    - Image Courtesy: finweek.info

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