The Secondary Sector
In the economy, the labor market is divided into three different sections, which are also called economic sectors: there is the primary sector, the secondary sector and the tertiary sector.
In this article we explain everything about the secondary sector.
The topic is a subtopic of the Economic Sectors area and belongs to the subject Geography.
What is the Secondary Sector?
The secondary sector describes the economic sectors in which raw materials are treated and processed. In it, raw materials are converted into consumer or capital goods. From the article on the primary sector we already know that the agricultural sector is responsible for the procurement of raw materials. Agriculture, forestry or fishing are typical areas of work in which raw materials are extracted.
In the next step of production, the raw materials go to the secondary sector for further processing. The secondary sector is therefore in second place in the value chain, i.e. directly after the primary sector.
The secondary sector is also said to be very material and capital intensive. This is due to the fact that many machines and utensils, i.e. a lot of material, are required to process the raw materials. This material must first be procured, which is associated with high costs.
The industrial sector
The secondary sector is also called the industrial sector or the industrial sector. Most of the secondary occupations are in the area of manufacturing economics, as they deal with the processing of raw materials. Many workers in the secondary sector therefore work in industries or factories. This explains where the term “industrial sector” comes from.
Secondary sector activities
Unlike the primary sector, the secondary sector cannot be limited to a few work areas. There are many different professions in many economic sectors. In general, it can be said that manual and commercial occupations in particular fall within the scope of activity in the secondary sector.
Two examples:
- The carpenter is a profession of the secondary sector. A carpenter uses wood, a raw material, to make tables and chairs, for example. So he processes the raw material and creates a useful good for society. The wood was first opened up by a forester in the first production step.
- The baker’s profession also belongs to the secondary sector. He processes the raw material grain into bread. The grain was previously procured by a farmer from agriculture.
In addition to manual and commercial occupations, the industrial sector also includes occupations in the energy industry or supply, as well as occupations in the metal industry, mechanical engineering or the construction industry. As you can see, the Secondary Sector covers a variety of professions.
In general, however, the secondary sector can be divided into four broad sub-sectors. A distinction is made between crafts, industry, construction and energy production.
The craft
Until the Industrial Revolution and mass production, crafts were the largest part of the industrial sector. It includes the production of commodities in workshops or in domestic spaces. Craft businesses are often family-run and produce locally. This distinguishes the resulting goods from machine-produced mass products.
The industry
Since industrialization, industry has been an important part of the secondary sector. Machines can be used to process large-scale materials and convert them into products. The ever-growing market can thus be served with a fast and constant production rate.
The construction
Construction is responsible for the construction of residential buildings, company buildings or public buildings such as schools, kindergartens, bridges or tunnels. It drives the pace of city expansion and population growth.
Secondary Sector – The generation of energy
All kinds of industries require energy to function. Energy production is part of the foundation of today’s world and is of great importance. Forms of energy sources are fossil energies, regenerative energies and nuclear energy. A wide variety of processes and materials are needed to tap into these energies. The professions in this area are therefore diverse and different and are of enormous importance for the industrial sector.
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Four main areas of the secondary sector are crafts, construction, industry and energy production
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The secondary sector is material and capital intensive
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The industrial sector covers a wide range of professions and economic sectors.
The development of the secondary sector
In Germany, from around 1950 to 1990, most people were employed in the secondary sector. Before that, most people were employed in the agricultural sector, while today the majority are employed in the tertiary sector.
The industrialization
Industrialization in the 18th century meant that the secondary sector began to grow and the primary sector gradually shrank. The Industrial Revolution began with the invention of the steam engine in 1769 and the power loom in 1786. This happened first in England, but 50-70 years later it also arrived in Germany.
With the help of the steam engine, the production of goods could be done much faster than before, which increased the productivity of production. They were now mass-produced and single-step manual work was dispensed with. The principle of the division of labor became more important, because it enabled one to specialize in individual steps and work more productively.
The invention of railroads and steamships also made trade faster. Goods could be transported quickly to other regions or countries, which favored the development of globalization.
Many jobs were created by the new innovations and inventions in the context of industrialization, because people were needed to operate the said machines. This led to a large increase in employees in the secondary sector.
In the meantime, however, the industrial sector is shrinking again, as the tertiary sector, also known as the service sector, is gaining in importance. Today it is the largest sector in Germany.
The Secondary Sector – Everything important at a glance!
- The secondary sector describes the economic sectors in which raw materials are treated and processed.
- The secondary sector is also called the industrial sector or industrial sector.
- The secondary sector is material and capital intensive.
- Crafts, construction, industry and energy production are four sub-sectors of the secondary sector.
- The industrial sector grew enormously due to industrialization in the 18th century.