Payyanur is much backward in industrial development like other parts of North Malabar. The main industrial establishments of this area are

1. Baliapattam Tile Works  , which is located at Kotty, near Payyanur Railway Station .  The main products of this firm are bricks and tiles. There are about 200 employees working in this factory.

2. Traditional Oil Industry: This industry was started at Payyanur in the last century by two Chettiar who had migrated from Kumbakonam in Tamilnadu to Payyanur.  The  “chakku”  ( traditional oil presses  operated by  a pari of bullocks) used   for the extraction of oil  was a major landmark of Payyanur.  Two of them are still working in payyanur town.

3. Khadi and Village Industry: About 25 small scale industrial units are functioning at various locations under Payyanur Farka Khadi Gramodaya Snagham in  weaving, spinning, readymade garments, furniture works etc.

4. Brass and Bronze Industry: About fifty families are indulged in the  manufacturing of bronze and brass metal works in the traditional style. These families are mainly concentrated at Padoli, Korom, Tayineri and Kokkanisseri area of the Municipality.  Kunhimangalam , the neighboring Panchayath is well known all over South India for its unique style in  this industry.

5. Earthern Pots:   Even though very weak , this sector is still functioning at area like Mavicheri and Karamel.

6. Gold and Jewelers:  This sector is still active. Payyanur is famous for its own “pavitra mothiram” crafted by the goldsmiths of Payyanur.

7. Beedi: Beedi sector  is providing employment to  a number of people. But this industry is slowly  really  weakened.  Apart from the major firm, Dinesh Beedi, a few units of some private companies are also present.

8. Weaving: Three  weaving co-op societies are functioning in this area. They are Teru Mambalam Weavers Co-op, Payyanur Weavers Co-op and Vellur Weavers Co-op.

9. Dairy : There are many dairy farms in Payyanur especially at Vellur. Many dairy firms are working here in private and co-operative sectors and some of them are with plants with latest milk processing technology.

10.  Mini Industrial Estate: There are 10 sheds available in this mini estate located at Moorikovval but only 5 are working properly.

Apart from these, there are some small scale industries  like general engineering, flour mills, automobile workshops.  Perumba wood-mill is one of the oldest industries in this region.