Secondary Economic Activity
Making Things
Secondary Economic Activity
• Secondary economic activity involves making things.
• It usually involves taking raw materials and making them into a finished
product or semi-finished product.
• For example, in a sawmill;
Raw Material – a raw material could be the trunk of a tree.
Semi-Finished Product – A semi-finished product could be planks of wood.
Finished Product - A finished product could be a table or a door.
A Sawmill
Raw Material
Semi Finished
Product
Finished Product
Processes – To change Raw Materials into semi-finished or
finished products we must process them.
Processes
Processes
Secondary Economic Activity
• Secondary economic activity usually takes place in factories or
workshops.
• Some factories may only take raw materials and make them into
semi-finished products.
• Other factories may only take semi-finished products and make
them into finished products.
• Secondary economic activity may be seen as a system.
• Each system has Inputs, Processes, and Outputs.
Inputs, Processes, and Outputs.
• All systems have Inputs, Processes, and Outputs.
• Inputs – These are the things that we need to put in at the start.
• Processes – These are the things we do to the Inputs to turn them
into semi-finished or finished products.
• Outputs – These are the things we have at the end.
Inputs, Processes, and Outputs.
•
Lets take a carpentry factory that makes doors and windows as an example.
Inputs
Processes
Outputs
Wooden planks
Electricity
Machinery
Workers
Measuring
Cutting
Moulding
Chiselling
Gluing
Clamping
Window frames
Doors
Off-cuts
Sawdust
Note: Processes involve doing something. These words often end in –ing.
Q. Make a list of inputs, processes, and outputs for a factory that makes;
(a). Metal filing cabinets (b). PVC windows (c). Leather Footballs
Semi-Finished Products
Finished Products
Finished Products
Where should I build my Factory?
•
Q. Imagine that you are a business man and you want to build a new
factory. What types of things might influence your decision about where
to build it?
•
In reality, there are lots of different factors that influence where factories
are built. These include;
1.
2.
3.
4.
5.
6.
7.
8.
Resource materials
Markets
Transport facilities
Labour
Services
Capital
Government/EU Policy
Preference of the business person or the local community.
What do you need to think about?
Resource
Materials
Preferred place
Of the
Owner
Government/
EU Policy
Markets
Transport
Facilities
Location
Factors
Capital
Labour
Services
How do these things influence where factories are built?
Resource Materials: These
are the raw materials or semi
finished products that the
factory needs to make things.
If the resource materials are
big and heavy, the factory will
need to be built close to the
resource materials.
If not it would be too difficult
and expensive to move the
resource materials to the
factory.
How do these things influence where factories are built?
2. Markets: Access to markets means being close to the places where
you are going to sell your products and the customers who are going to
buy them. The closer you are the less transport costs you will have to
pay to distribute your goods. Therefore you can do it faster and
cheaper.
3. Transport Facilities: All factories need to transport their finished
products to their customers. If the products are to be sold in the same
country then good road or rail transport is required. If the company is
exporting their products they will need to be close to the airport or a
port.
How are Goods Transported?
How do these things influence where factories are built?
4. Labour: Labour means
the workforce.
All factories need workers and so
the factory must be built where
there are enough workers.
Some factories require low
skilled workers.
Other companies may require
highly skilled university
graduates to work in their
factories. For example, Intel.
How do these things influence where factories are built?
5. Services: Services means having things like electricity, water, sewage
treatment, telephone, and broadband internet access. Most companies need
good quality services and so they set up only were these things are available.
How do these things influence where factories are built?
6. Capital: Capital means the money the company needs to set up
their factory. They may need to get investment from banks to help with
these costs.
How do these things influence where factories are built?
7. Government/EU Policy:
Governments do many things to
encourage companies to set up in
their country.
The Irish government gives grants to
companies who set up here. We also
have a low corporate tax rate. They
may also build factories for the
companies and pay money towards
training workers.
Q. How has membership of the EU
helped Ireland attract companies
to set up here.
How do these things influence where factories are built?
8. Preferences of Business person/local communities:
Some people may set up a factory in an area where they like or were
they come from.
Local people often are happy when companies set up in their area
because it provides jobs.
However, other people may not want factories because it increases the
traffic and the number of trucks on the road. It may also cause noise,
visual, and air pollution.
Different Types of Industry
• Heavy Industry – In these types of industries the resource materials
and the products being made are big and heavy. Iron and steel
making is an example of a heavy industry.
• Light Industry – In these types of industries the products being made
are small and light. Electronic products and healthcare products are
examples.
• Multi-national Corporations (MNC’s) – These types of companies
make their products in many different countries. Examples include
Coca Cola, Microsoft and Nike.
Aughinish Alumina - Heavy Industry
•
In these types of industry the
raw materials and the finished
products are very heavy.
•
Q. Can you think of any
examples of Heavy Industry?
•
An example in Ireland is the
Aughinish Alumina factory on
the Shannon Estuary, close to
Limerick city.
•
Q. Examine the location of
Aughinish Alumina on the
map. Why do you think it is a
good location for a heavy
industry?
Aughinish Alumina
• Aughinish Alumina is a factory that makes Alumina. Alumina is a
semi-finished product. It is a white powder used to make aluminium.
• Ireland does not make aluminium, so the alumina is exported by
ship to aluminium smelters in the UK and Scandinavia.
The Aughinish Alumina Plant
• The Aughinish Alumina
plant is the largest of its
kind in Europe.
• Production started in
1983 and now produces
over 1.8 million tons of
alumina per year.
• It has almost 500
employees.
•
•
The Aughinish Alumina factory is built on Aughinish Island on the Shannon
Estuary.
Q. Examine the map below and explain 3 reasons why this was considered
to be a good location for a Heavy Industry.
Intel Ireland – A Light Industry
Intel is an example of a light
industry in Ireland.
Q. Why is Intel considered to
be a light industry?
Intel makes microprocessors
(computer chips) for laptops
and PC’s.
Q. Can you think of any
reasons why Intel set up a
factory in Ireland?
The Location of Intel
Intel Ireland – What does Intel make?
Why did Intel come to Ireland?
•
Ireland has a well educated workforce. We have lots of graduates in science
and engineering which Intel needs.
•
We speak English and Intel is an American company. English is the
international business language.
•
The IDA gave €110m towards the development of the Intel plant.
•
Intel sells over 25% of their products in the EU. Free movement of goods
and services within the EU means that Intel does not have to pay tariffs on
the products it sells in Europe.
•
Ireland has good ports and airports for importing and exporting goods.
•
Ireland had the necessary services such as water, electricity, and
broadband internet access.
High Tech Workers in the Clean Room
Why did Intel locate in Leixlip?
Leixlip has many advantages as a location of business.
1.
It is close to Dublin city and universities like NUI Maynooth, Trinity
College, and Tallaght I.T. These colleges provide the skilled
workers Intel need.
2.
It is close to the airport and Dublin port.
3.
There was a large greenfield site zoned as industrial land.
4.
Solid bedrock in the area prevents vibrations in the ground. This is
important when making microprocessors.
The benefits Intel brings to Ireland
• The Intel plant in Leixlip is the largest Intel factory outside the United
States.
• Over 4,200 people work at the Intel campus in Ireland.
• In 2009, Intel Ireland contributed more than €1 million to education
programmes including the Science in Schools programme, the
Young Scientist and Technology Exhibition.
• Intel also makes equipment donations to schools and universities.
• It pays corporation tax to the Irish government.
• It creates many jobs as a result of Spin Off employment.
Homework
• Explain in detail 3 reasons why Wyeth
Medical set up a factory in Grange Castle
Business Park.
• What advantages does this company bring
to Ireland?
The Shannon-Limerick Industrial Region
•
•
•
•
Many different types of companies operate in this region.
Heavy industries include Aughinish Alumina and a cement factory. These
are built on the Shannon estuary.
Light industries include Dell and Johnson & Johnson, and other IT and
healthcare companies. These are built in Shannon Industrial Estate and the
national Technology Park beside the University of Limerick.
Many aircraft related industries have developed around Shannon Airport.
Footloose Industry
•
In the past industries could only set up in places were there was lots of coal
available. This is because coal was the main source of energy at the time.
•
Coal was used in the production of Iron and Steel, and it was also used to
create steam to power the spinning machines to make textiles.
•
These days many manufacturing industries can set up in many different
locations. They are not tied to one place and so they are called Footloose
Industries.
•
Footloose Industries usually locate in industrial estates or business parks
close to large cities. Examples include Citywest, Park West, and Grange
Castle.
Footloose Industry
• Footloose Industries
usually locate in industrial
estates or business parks.
Industrial Location – Change over time
• As time goes by some industries may need to change their location.
• This may be because they have changed their production methods
and need new services and infrastructure.
• For example, in the past most industries needed to be close to coal
mines because coal was the main source of power.
The British Iron & Steel Industry
•
In the late 1700’s Britain began to develop its Iron and Steel industry.
•
Britain had large amounts of coal and iron ore. These were the raw materials
used to make iron and steel.
•
All of the steel mills were built beside the coal mines, because coal is a bulky,
heavy raw material. It was expensive and time consuming to transport it.
•
Britain was the leading country of the industrial revolution, mainly because of
all the coal and iron ore it had.
•
It used the steel to make railway tracks, trains, engines, ships, factories,
machines, and weapons.
•
All of these things helped Britain to become the most powerful country in the
world.
British Iron & Steel Industry
The Iron and Steel Industry was a very important part of the British
economy until the middle of the 20th century. There were thousands of
people employed in the coal mines and the steel mills.
However, in the last 50 years the steel industry in Britain has almost
disappeared. Nearly all of the coal mines and the steel mills have been
closed down.
Decline of the Steel Industry
Decline of the Coal Industry
• The coal mining industry peaked in 1913 when there were over 2500 coal
mines in Britain. In 1913 the railways moved over 226 million tons of coal.
• In 1947 there were still over 450 deep mines in operation. Mines continued
to close in the 1960’s as the easily accessible coal was mined out.
• The availability of cheap oil and North Sea Gas in the 60’s and 70’ reduced
demand for coal.
• By the end of 1995 there were less than 30 mines, only 2 being deep coal
mines, left in Britain.
The Coal Mine
Steel Workers in the 1930’s
The Sydney Harbour Bridge
The Sydney Harbour Bridge was built between 1926-1932.
Nearly every nut, bolt and girder were made with steel from Teesside,
although the rivets came from Lancashire.
Steel mills are huge factories employing thousands of people. Their
closures, along with the coal mines caused destruction in the lives of many
British families who had worked in the mines and the mills for generations.
Modern Steel Mills
Mining Iron Ore today
Women in the workforce in Ireland
• Until the 1970’s most Irish
women worked in traditional
roles as wives and mothers.
• The situation changed
dramatically over the past
40 years and many women
now work outside the
home.
• Many women are choosing
to have careers instead of
working in the home.
Women in the workforce in Ireland
There are many reasons why things changed;
1.
From the late 1960’s everyone in Ireland had free secondary
education. Boys and girls now had equal access & opportunities
to get qualifications and participate in the workforce.
2.
Gender equality laws have given women equal status with men in
the workforce.
3.
The increase in the cost of living has meant that in many cases
both parents now have to work to pay for the house, the car etc.
Q. Can you think of any disadvantages of having more women working
outside of the home?
Women in the workforce in Ireland
Despite the changes that have
occurred, inequalities still exist in
the workplace. For example;
1.
2.
3.
3 x more women than men
work in part-time jobs.
Women earn less than men
in manufacturing jobs.
Men occupy most of the
higher level positions in the
work place.
Q. Contrast the salaries of men
and women in shown in Fig.11.17
The Irish Workforce
•
What % of Irish workers is made
up of; a). Males b). Females?
•
Why do you think less women
work outside the home?
•
What % of men work in full-time
jobs?
•
Contrast the data shown in the
pie charts for men and women.
•
Explain why you think these
differences exist.
Difficulties for Women
Women in the Workforce in China
• Many factory workers in China are women. They are often from poor
rural families. They travel to the cities to work in the factories. They
work long hours for very poor pay.
• They make things such as toys and clothes which are then exported
to countries in Europe, and also to the United States.
Women in the Workforce in China
Industrial Development
•
Countries and regions can be grouped together based on their
level of industrial development. There are 3 main groups. These
are;
1.
2.
3.
Industrialised regions.
Newly industrialised regions
Industrially emergent regions
Q. List 3 countries in each category.
Industrial Development
Industrialised countries – These include the USA, Japan, and countries
in Western Europe. All these countries industrialised during the
Industrial Revolution in the 18th and 19th Centuries.
Newly Industrialised countries
These countries are mainly in South-East
Asia, such as South Korea, China, India.
Other examples are Mexico and Brazil.
Cheap labour in these countries means
that more and more multinational
corporations are outsourcing production to
these countries.
Many things like shoes, clothes, and
electronic goods are now made in these
countries.
The Rise of Developing Countries
Industrially Emergent countries
• These countries have very little manufacturing taking place. They
are mainly in sub-Saharan Africa, as well as some parts of Asia and
South America.
• However, companies are always looking to cut their costs and so
Africa is becoming more attractive to companies. Some of India’s
richest men have invested billions of dollars in Africa over the past
18 months.
• Over the next few years as the pay increases in the Asian countries
we will see more and more companies setting up in Africa to take
advantage of the low costs there.
Is industrialisation bad for the Environment?
•
•
•
Industry can bring many benefits to a region.
It provides people with jobs and can improve transport links.
However, industry can also cause pollution. Acid rain is one example.
Q. How can industry lead to acid rain being formed?
Q. Analyse the diagram below and explain how acid rain is formed.
Acid Rain
• Acid rain is formed when
sulphur dioxide and
nitrogen oxide are released
into the atmosphere from
cars and factories.
• The gases combine with
the water vapour in the
atmosphere and fall as acid
rain.
• Acid rain can form in one
region, but can be blown by
the wind to another region.
Acid Rain
• Q. List 3
countries/regions that
have a serious acid rain
problem.
• Q. What effects does acid
rain have on the
environment?
• Q. Explain why Sweden is
badly affected by acid
rain.
What problems can acid rain cause?
• It washes nutrients from the soil. This causes trees to die. It also
stops crops from growing meaning farmers have to use more
fertilizer.
• It wipes out fish stocks in lakes as fish cannot reproduce if the water
in the lake is too acidic.
• It affects the water quality which can be bad for our health.
• It damages old buildings by wearing away the rock.
What can we do to solve the problem?
• We have to reduce the amount of pollution going into the
atmosphere. We need to do the following things.
• Use our cars less. Drive slower on the motorway. Use bicycles or
public transport to travel to work.
• Use more renewable energy sources such as solar and wind power.
• Use natural gas instead of coal in power stations because it is a
cleaner fuel.
• Use filters on coal and oil power stations to reduce sulphur dioxide
emissions.
• Build more nuclear power stations. (Although these cause other
environmental problems).
Incinerators
• Incinerators are factories that
burn waste.
• Incinerators have caused huge
controversy in Ireland over the
past few years.
• Everywhere they are built local
people protest against them.
• This is because some
scientists believe the fumes
coming from the incinerators
are carcinogenic.
• However the companies
running them state that they
pose no risk to human health.