Physical Capital
Jonathan Poland
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Physical capital refers to the tangible assets that are used to produce goods and services. This term is commonly used in economics to describe one of the three factors of production, along with labor and natural resources. Examples of physical capital include machinery, equipment, buildings, and infrastructure.
These assets are essential for businesses to be able to carry out their operations and create value for their customers. Unlike financial capital, which is a measure of a company’s financial resources, physical capital refers to the tangible assets that the company owns and uses to generate revenue. The following are common examples of physical capital.
| Agricultural Equipment | Aircraft |
| Appliances | Buildings |
| Computers | Containers |
| Energy Infrastructure | Equipment |
| Facilities | Factories |
| Fixtures | Furniture |
| Heating, Ventilation and Air Conditioning | Inventory |
| Land Improvements | Machines |
| Materials | Media Equipment |
| Mobile Devices | Musical Instruments |
| Purchased Software | Robots |
| Safety Gear | Satellites |
| Ships | Signs |
| Supplies | Technology Infrastructure |
| Theme Park Attractions | Tools |
| Transportation Infrastructure | Unfinished Goods (work-in-progress) |
| Uniforms | Vehicles |
