Smokestack Industry

Basic manufacturing industries, such as autos, chemicals, steel, paper, and rubber, which typically have smokestacks on their plants. The fate of these industries, when viewed by Wall Street analysts, is closely tied to the ups and downs of the economy-they are therefore called Cyclical stocks. Many smokestack industries are located in what is known as the Rust Belt.

Heavy industry, typified by the steel and auto industries. The term originates in the fact that these industries usually have large smokestacks for their operations. U.S. Smokestack industries are facing intense international competition.