Construction, Industry & Mining: Sector Two Insights

Sector 2: Construction and Industry

SECTOR 2: The second sector is composed of two activities: Construction and Industry.

Construction

Construction is the economic activity dedicated to creating buildings and infrastructure.

Industry

Industry: the main component of Sector 2. It covers the activities relating to the processing of raw materials into manufactured goods, goods to be consumed directly, or goods to be used, in turn, as raw materials in other industries (semi-finished products).

At a small production scale, in handicrafts the product was made manually: one person handled the entire process. The product was intended for self-consumption or a limited market and productivity was low. The industry as we know it emerged in the late nineteenth century during the Industrial Revolution.

Features of the Industrial Process

• Machinery is used and is powered by an energy source.
• Workers do their work in a factory.
• The process requires the division of labor: each worker specializes in a stage of production.

The industry is one of the basic indicators used to measure the degree of development of a country. It is common to identify industrialized countries with developed countries and non-industrialized countries with underdeveloped countries.

Mining

Mining is the sector responsible for the extraction of minerals. Minerals are basic raw materials for the manufacture of many industrial products.

Types of Industries

Mining and Heavy Industries

Mining and heavy industries transform raw materials into intermediate products. They require high capital investment and large volumes of raw materials and energy. They are often highly polluting, which is why they are frequently located outside urban centers. They also require space for their large facilities.

Metallurgical Industry

The metallurgical industry is dedicated to the manufacture of metal products. When it produces iron and steel it is called the steel industry. Aluminum is very important because it is used in other industries (shipbuilding, automotive, etc.). Copper metallurgy is also of great interest for its use in electrical, automotive, and aircraft applications.

Heavy Chemical Industry

The heavy chemical industry manufactures products required by modern industry: sulfuric acid, nitrogen compounds, soaps, and derivatives from coal and oil. This sector requires major investment and skilled workers, and it is usually located in developed countries.

Capital Goods (Equipment) Industries

Capital goods industries (equipment goods industries) transform semi-finished products of heavy industry into goods and finished products. Emphasis is placed on high-tech industries and aerospace. Capital goods industries are concentrated in the U.S., some states of the European Union, Russia, and Japan.

• Construction materials
• Agricultural and industrial equipment
• Vehicles
• Aerospace
• Electronics for industrial application

Light or Consumer Goods Industries

Light industries, or consumer goods industries, produce direct consumer products. They consume less materials and energy sources, are less polluting, and are typically located near cities and communication lines. Their size varies widely.

• Food industry
• Light chemicals
• Light automotive
• Textile industry
• Electronics