Industrial Business

Types of secondary industry in the global economy

Types of secondary industry are defined as the segments that handle the raw materials that primary industry extracts to convert them into finished products.

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The global economy is organized into numerous industries, each responsible for specific business activity. The industry is divided into three major types: primary, secondary, and tertiary sectors. The primary industry is mainly concerned with the extraction of raw materials from natural resources. Today, we’ll look at the secondary industry. Types of secondary industry build the economic sector that encompasses all industries responsible for producing a usable completed product and are involved in manufacturing.

What is the secondary industry?

The secondary industry is a subset of the manufacturing sector that uses raw materials as input and produces completed goods as output. In a nutshell, secondary industry businesses convert raw materials produced by the primary industry into manufactured industrial items. Secondary sector is in contrast to primary industries that manufacture raw materials and tertiary industries that manufacture services. A significant secondary industry is a defining feature of an economic structure.

Secondary industry definition

Secondary industrial organizations are defined as the segments that handle the raw materials that primary industry extracts to convert them into finished industrial products. The tertiary industry then sells these finished commodities to the consumer market. In a strong economy, the industrial sector is dominated by secondary industries such as manufacturing and generating completed industrial products.

Importance of secondary sector

The secondary industry types are crucial to improving a country’s economy. Additionally, it stimulates global economic growth and creates opportunities for countries to form trade agreements. The Primary Industry obtains raw materials, whereas the Secondary Industry transforms these materials into the products we consume. The delicate items that we sell in our stores are a good illustration of things that originated in the Secondary Industry.

The secondary industry is critical since it is the primary generator of wealth in a country. Numerous economists compare this sector to an economy’s wealth. This is because when regression starts in the secondary industry, an economy begins to decline. And it is primarily this industry that generates wealth. This identification of the economists highlights the critical role of manufacturing in sustaining economic growth and development.

there are many factories working for the secondary industry

Significant types of secondary industry

The industrial sector of a country’s economy is concerned with the manufacture of processed goods. On the other hand, the secondary industry’s objective is to manufacture things commonly used in society. For instance, it encompasses steel and automobile manufacturing. Thus, the secondary industry’s distinctiveness is based on the opposite action of making items rather than acquiring raw materials.

Secondary industry, often known as the manufacturing industry, gets the raw materials supplied by primary industries and transforms them into consumer items. The other feature of secondary industries that pertains to them is their capacity to change existing secondary goods into more technically sophisticated things. Additionally, it focuses on capital development, as well as construction and energy-related items.

Generally, secondary industry types are classified as heavy industry or light industry. However, it’s worth noting that each may have its classification within businesses, organizations, or professional associations. Additionally, they are separated into chambers or guilds. We’ll begin by listing some of the major economic activities that fall under this sector’s umbrella: electrical, chemical, energy, construction, glass, textile and apparel, and metallurgical.

Additionally, the secondary industry is responsible for the production of mass consumer goods. This category includes things that must be consumed regularly, such as cosmetics, cleaning supplies, sweets, and food. The industry that large brands with enormous production capacities dominate deals with the production of gigantic products.

Heavy industry, food items, fashion, crafts, automobile production, and anything related to electronics are all examples of secondary economic activity. Additionally, we discover several activities in which international corporations operate in the secondary industry.

industrial engineers are mostly work for the secondary industry

Secondary industry examples

1. Light industry

Light industry runs a manufacturing activity that uses a small amount of partially processed or raw material to make high unit weight prices. Thus, when compared to heavy industries, environmental impact is negligible.

This labor-intensive sector does not require a vast footprint or a significant amount of raw material. Instead, it is used to manufacture things destined for the end-user.

Several notable instances of light types of secondary industry include the following:

  • Textile mills, garment manufacturers, and leather manufacturers
  • Distilleries, bottled water, soft drink production, and breweries are all examples of products associated with tobacco and beverage manufacture.
  • Food products such as morning cereals, frozen foods, dehydrated foods, and ice cream are manufactured.
  • Producing food for pets such as cats and dogs

 

2. Heavy industry

Heavy industry refers to manufacturing and industrial processes that take place on a massive scale and need huge and heavy facilities, equipment, areas, machine tools, and sophisticated and large-scale infrastructure. Consequently, it requires a significant capital expenditure in comparison to light industries.

Several notable instances of heavy industries include the following:

  • Glass and a variety of associated goods
  • Manufacturing of chemicals such as industrial gas and petrochemicals such as ethyl alcohol, fertilizer, synthetic dyes, and pigments
  • Machinery for industry, mining, construction, and agriculture
  • Production of concrete and cement
  • Producing coal and petroleum products such as asphalt shingles, refineries, petroleum, and coating materials
  • Steel and iron mills, steel product manufacture, aluminum production and processing, and ferroalloy manufacturing
  • Transportation, production of trailers, aeronautical items, and ship and boat construction

Conclusion of secondary industry types

Types of secondary industries are the most vital components of an economy. Countries that rely on agriculture for primary sector activities grow more slowly than those that rely on secondary sector activities. This means that secondary industries account for a sizable portion of the gross domestic product because they generate products and serve as the locomotive of the economic development of a country.