Industrial sector

By: EconomyWatch   Date: 29 June 2010

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The industrial sector of the economy is one that make finished products which can then be utilized viz. construction and manufacturing industry. Industrial sector is also known as secondary sector.

Industrial sector or secondary sector is one of the 3 sectors that make up a country's economy. The other two are the primary sector (includes agriculture, fishing, and mining) and service sector (includes hospitality, consultancy and nursing). Secondary sector is one that makes a complete product which can then be utilized. Examples of industrial sector are manufacturing industry and construction.

Characteristics

Industrial sector usually accepts the primary sector end product and then applies them to construct completed products that are then either purchased by the end user or sent for further processing or fabrication. The industrial or secondary sector can be classified into two types: heavy industry and light industry. Most industries transform raw materials into finished products. Large quantities of energy are consumed to run the process. Manufacturing industries tend to generate pollution and are the source of environmental problems.

Construction is making a building or the fabrication of infrastructure. Effective planning is required for successful execution. The activity requires a mastery of multitasking.

Divisions

A few common industrial sector divisions are:
l. Automobile industry
2. Chemical industry
3. Consumer electronics
4. Industrial equipment
5. Steel production
6. Tobacco industry
7. Aerospace manufacturing
8. Brewing industry
9. Textile industry
l0. Energy industry viz.electricity industry, natural gas industry,petroleum industry
11. Metalworking
12. Telecommunications

Better quality of life

Economists are of the opinion that manufacturing industry creates wealth compared to the service sector. The service sector is regarded as a consumer of wealth. Countries that export manufactured goods are usually found to have higher marginal GDP growth. This translates into a better quality of life for that country's citizens. Manufacturing promotes economic development. This sector employs a better quality of white collar professionals. Social mobility in the upward direction is also created.

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