If you want to understand why some industrial companies quietly compound wealth for decades while others burn through shareholder capital like it’s jet fuel, you have to start with one unglamorous concept: Capital intensity. Not brand awareness. Not “AI integration.” Not vibes. Capital intensity. Industrial businesses live and die by how much capital they require to generate revenue—and how well they convert that capital into durable competitive advantage. It’s not sexy. It’s not viral. It’s steel, concrete, tooling, plants, logistics networks, and depreciation schedules. But if you care about durable returns—especially if you write or invest in this space—you ignore capital intensity at your own peril. Let’s break this down properly. What Is Capital Intensity? Capital intensity refers to how much capital—fixed assets, working capital, infrastructure—is required to produce a dollar of revenue. In industrial businesses, that often means: Manufacturing plants Heavy mac...