Secondary Sector of the Economy: A Comprehensive Guide
Secondary Sector: Industry
I. Raw Materials
The secondary sector transforms raw materials into finished products. This economic activity is called industry. Raw materials are natural resources that can be classified by origin:
- Animal: meat, wool, milk, skin
- Vegetable: cotton, jute, wood, rubber, resin, fruits, cereals, grapes
- Mineral:
- Metallic: copper, iron, lead, silver, gold, zinc, aluminum
- Non-metallic: clay, marble, limestone, potassium, salt, sulfur, phosphate
- Fuel: coal, oil, natural gas
Raw materials can also be classified by other aspects:
- Renewable: regenerate naturally, can be replaced, can be grown
- Non-renewable: limited, cannot be replaced, will run out
- Recycled: can be used again and again
- Non-recycled: can be used only once, disappear with use
II. Conventional Energy Resources
- Fossil Fuels: coal, oil, natural gas. These come from fossilized organic beings (plants, animals). They are non-renewable and non-recycled, so they will be exhausted in the near future. They are extracted from the Earth in oil fields and coal fields.
- Oil/Petroleum: Principal oil exporting countries: Saudi Arabia, Russia, Iran, United Arab Emirates, Nigeria, Iraq, Venezuela, Kuwait, Norway. In 1960, the Organization of Petroleum Exporting Countries (OPEC) was created to defend the interests of the oil-producing countries: prices, barrels of extraction, etc. Oil must be refined to obtain different oil goods: petrol (gasoline), diesel, lubricating oil, paraffin, kerosene, etc. The main oil consumers are the developed countries (USA, Japan, Germany, UK, France, Canada, Italy, Spain, etc.) and the BRIC countries (China, India, Russia, Brazil) and some developing countries (Mexico, South Korea, South Africa, etc.). The refining process is done in refineries, huge industrial plants located mainly in developed countries. The oil is taken by oil tankers, huge ships, to the refineries; that is why most refineries are on the coast; from there, oil pipelines take the refined products to inland storage to be distributed all over the country (petrol stations, households, factories, agriculture cooperatives, etc.).
- Conventional Electricity: One of the most widespread forms of energy, providing power for industrial machinery, computer equipment, lighting, heating, etc. Electricity has these advantages:
- Can be transported easily by cables
- Clean at the point of use
- Converts easily to other forms of energy
- Thermal Power Stations: Process: burning fuel, water steam, turbine, electric generator. Fuels used: coal, oil, natural gas, wood, urban waste.
- Nuclear Power Stations: Process: nuclear fission, heat, water steam, turbine, electric generator. Mineral needed: uranium.
- Hydroelectric Power Stations: Process: water reservoirs, falling water, turbine, electric generator.
III. Alternative Energy Sources
These are renewable energies that produce less pollution. They have two important advantages:
- Zero fuel cost
- Renewable: they never run out
Main alternative energies:
- Wind Power Plants: Process: wind, turbine, electric generator.
- Solar Energy: Uses solar radiation. Can be:
- Thermal: Uses the sun’s heat.
- Photovoltaic: Produces electricity directly from sunlight.
- Geothermal Power Stations: Use the Earth’s internal heat.
- Biomass Power Stations: Use organic waste.
- Tidal Power Stations: Use the ocean’s tides.
Some problems with alternative energies:
- Huge investments are necessary
- Dependent on nature
- Low output
- Difficult to store
Types of Industry
I. Heavy Industry
Heavy industry provides products to other industries and produces semi-elaborated goods and materials for other industrial processes. The main features of heavy industry are:
- Needs a large amount of energy and raw materials
- Uses large industrial complexes
- Located near extraction sites or ports (coast)
- Highly polluting
Main heavy industries:
- Iron and Steel: Melting and molding minerals to get iron and steel.
- Metals: Transforming minerals into metal goods: aluminum, copper, etc.
- Petrochemical: Refining oil; producing fertilizers from minerals, plastics, etc.
- Cement: Clay, rocks, limestone, and gypsum are transformed into building materials: tiles, bricks, plaster, concrete, etc.
- Wood Industry: Makes wooden planks for furniture and cellulose for paper.
The following can be considered heavy industries because they need large industrial complexes and huge investments:
- Capital Goods: Machinery, tools, equipment made out of elaborated metals.
- Shipbuilding and Aerospace Industry
- Military Equipment
II. Light Industry
Light industry provides finished products directly to consumers. It is also called consumer goods industry. The main characteristics of light industry are:
- Uses semi-elaborated products
- Needs less energy than heavy industry
- Located near consumers, around populated areas
- Less polluting
There are many light industries because there are many different goods. Some light industries are:
- Food: dairy (butter, cheese, yogurt), canned food, frozen food, pastries, etc.
- Light Chemical: pharmaceutical, cosmetics, detergents, etc.
- Electronics: computer equipment, calculators, mobile phones, microprocessors, etc.
- Textile: cloths
- Automotive: cars, lorries, motorbikes, etc.
- Leather: shoes, bags, belts, etc.
- Optical Equipment: lenses, glasses, microscopes, etc.
- Household Appliances (White Goods): refrigerators, cookers, washing machines, etc.
- Toys
- Luxury Articles
- Paper and Printing Goods
- Furniture: traditional wooden or metallic furniture and modern ergonomic furniture
Main Industrial Regions in the World
I. Industry in Developed Countries
- European Union: Germany, France, UK, Italy, Spain
- Russian Federation: Moscow area, Don River basin, Urals region
- North America:
- USA: Great Lakes, northeast coast (Atlantic), California (Pacific coast), southeast region
- Canada: Saint Lawrence basin, Pacific coast
- Japan
II. Recent Industrial Areas in Developing Countries
- Central and South America:
- Mexico: the frontier with the USA
- Brazil: coastal areas (Atlantic)
- Argentina: La Plata area
- Chile
- Venezuela: Caribbean coast
- Asia:
- China: Beijing and Pacific coast
- India: Bangalore, Bombay
- Asian Tigers: Hong Kong, Singapore, South Korea, Taiwan
- Southeast Countries: Malaysia, Indonesia, Vietnam, Thailand, Philippines, etc.
- Africa:
- Republic of South Africa
- Gulf of Guinea Countries
- Egypt: around the Suez Canal
- Australia: southeast coast (Pacific)