The Secondary Sector: Industry and Its Impact on Economic Growth

The Secondary Sector: Industry

Definition

The secondary sector encompasses industries that transform raw materials into manufactured goods. This process involves the use of machinery and energy in enclosed spaces like factories, resulting in the mass production of products.

Types of Industry

By Maturity

• Mature: Textile, steel, naval
• Advanced: Biotechnology, microelectronics, telecommunications, robotics

By Destination of Products

• Basic Industries: Convert raw materials into semi-finished products
• Capital Goods Industries: Manufacture products essential for other industries
• Consumer Goods Industries: Produce goods for direct sale to consumers

The Post-Fordist Model

This model emphasizes the development of new technologies and industries, catering to individual consumer tastes, flexible production systems, and the integration of emerging countries.

Multinational Companies

Multinationals are large corporations with subsidiaries or establishments in multiple countries.

Location of Industry

Factors influencing industrial location include access to innovation, information technology, transportation, and communication.

Industrial Relocation

This involves transferring part or all of a company's production activities from one country to another. Factors enabling relocation include the opening of emerging markets, advancements in information technology, and improved transportation.

Impact of Relocation

For developed economies, relocation can lead to job losses and lower prices for manufactured goods.

Industrial Powers

A few countries account for a significant portion of global industrial production. Traditionally, these powers included the US, Europe, and Japan. However, emerging countries like Brazil, Russia, India, China, and South Africa are gaining prominence.

Industry in Spain

Mining

Mining employs a small percentage of the workforce and focuses on non-metallic minerals. Spain has limited energy resources and relies heavily on imports.

Construction

The construction sector plays a significant role in the Spanish economy, employing a large number of workers. However, its importance has declined since the 2007 crisis.

Industry

Industry contributed significantly to Spain's GDP and employment in 2013. Key industrial sectors include food, beverages, tobacco, automobiles, and chemicals. Industrial activity is concentrated in Catalonia, Madrid, the Basque Country, and the Valencian Community.