Deutsch: Abhängigkeit / Español: Dependencia / Português: Dependência / Français: Dépendance / Italiano: Dipendenza

Dependency in the industrial context refers to a situation where a company, industry, or economic system relies on certain resources, components, technologies, or external factors to function effectively. This reliance can affect everything from production capabilities to strategic decision-making.


In industry, dependency often implies a potential vulnerability due to the reliance on specific inputs or external conditions. This could involve dependency on a single supplier for critical components, reliance on global markets for raw materials, or technological dependencies in production processes. Understanding and managing these dependencies are crucial for maintaining stability and operational continuity in industrial operations.

Application Areas

Dependency can manifest in various forms across different sectors of the industry:

  • Supply Chain Dependency: Reliance on particular suppliers for essential raw materials or components can create bottlenecks and vulnerabilities.
  • Technology Dependency: Dependence on specific technologies or software for production processes.
  • Market Dependency: A situation where a significant portion of a company’s revenue depends on a particular market or type of customer.
  • Resource Dependency: Dependence on critical natural resources, such as oil, gas, or rare earth metals, which can influence everything from production costs to geopolitical strategy.

Well-Known Examples

Examples of dependency in the industrial context include:

  • Automotive Industry’s Dependency on Steel and Aluminum: This dependency can make the industry vulnerable to price fluctuations and supply chain disruptions.
  • Tech Industry’s Dependency on Rare Earth Elements: Used in everything from batteries to electronics, these materials are critical and often sourced from geopolitically sensitive regions.

Treatment and Risks

Managing dependencies involves several strategies:

  • Diversification: Reducing risk by diversifying suppliers, markets, and resource sources.
  • Strategic Stockpiling: Maintaining reserves of critical materials to buffer against supply disruptions.
  • Investment in Technology: Developing or investing in alternative technologies to reduce reliance on certain processes or materials.
  • Supply Chain Optimization: Enhancing flexibility and responsiveness in the supply chain to handle disruptions more effectively.

Similar Terms

  • Interdependence: A mutual dependence between things where each party requires the other to function effectively.
  • Vulnerability: Often associated with dependency, it refers to the susceptibility to suffering harm due to reliance on external factors.



In the industrial or industry context, dependency is a key concern that involves reliance on necessary resources, technologies, or markets. Effective management of these dependencies is crucial to reduce vulnerabilities and ensure sustainable and stable industrial operations.


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