secondary economic activity making things. secondary economic activity secondary economic activity...

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

Finished Product

Semi Finished Product

Processes – To change Raw Materials into semi-finished orfinished products we must processprocess 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 Measuring Window frames

Electricity Cutting Doors

Machinery Moulding Off-cuts

Workers Chiselling Sawdust

Gluing

Clamping

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. Resource materials2. Markets3. Transport facilities4. Labour5. Services6. Capital7. Government/EU Policy8. Preference of the business person or the local community.

What do you need to think about?

ResourceMaterials

Markets

TransportFacilities

Labour

Services

Capital

Government/EU Policy

Preferred placeOf theOwner

LocationFactors

How do these things influence where factories are built?

Resource Materials: Theseare the raw materials or semifinished products that thefactory needs to make things.

If the resource materials arebig and heavy, the factory willneed to be built close to theresource materials.

If not it would be too difficultand expensive to move theresource materials to thefactory.

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 meansthe workforce.

All factories need workers and sothe factory must be built wherethere are enough workers.

Some factories require lowskilled workers.

Other companies may requirehighly skilled universitygraduates to work in theirfactories. 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 werethey come from.

Local people often are happy when companies set up in their areabecause it provides jobs.

However, other people may not want factories because it increases thetraffic 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 workingoutside of the home?

Women in the workforce in Ireland

Despite the changes that haveoccurred, inequalities still exist inthe workplace. For example;

1. 3 x more women than men work in part-time jobs.

2. Women earn less than men in manufacturing jobs.

3. Men occupy most of the higher level positions in the work place.

Q. Contrast the salaries of menand 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. Industrialised regions.

2. Newly industrialised regions

3. 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.