What is physical capital ?

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The term physical capital refers to all non-human assets created by humans and used in the production and manufacturing process . Physical capital also referred to as a twitch themselves have been manufactured and I use for the production of other goods and services . examples of physical capital include machinery and equipment used directly in the production process . buildings are also classified as physical capital as long as they are used in business operations . Manufacturing plants that contain all production equipment and facilities and warehouses that contained finish or work-in-progress products are all part of the physical capital of man .

an important point to note is that physical and human capital must go hand in hand for a business to run it operations successfully . the right human capital can enhance the value of physical capital and influence the right physical capital . Human capital cannot contribute to its full extent . human capital and physical capital are what type of capital resources that are essential to the smooth running of any business . companies can invest in their human capital by offering training and education facilities to it workers , training and developing employees can help them develop a broader set of skills and abilities and reduce cost of hiring additional employees with necessary skills .