Categories of Industry PDF

Categories of Industry -primary sector -secondary sector -tertiary sector Primary Sector -consists of natural resource based industries -these industries extract wealth form the land or sea -it produces the essential raw materials required for manufacturing industries -primary sector include...

Categories of Industry -primary sector -secondary sector -tertiary sector Primary Sector -consists of natural resource based industries -these industries extract wealth form the land or sea -it produces the essential raw materials required for manufacturing industries -primary sector includes farming (agriculture), forestry, fishing and mining (3FM) Primary Sector Importance -raw materials = provides raw materials for for industry eg ingredients for food processing industry, timber for construction industry 3 -employment = many people are employed directly and indirectly in farming, forestry, fishing and mining, they pay taxes on their wages and this gives the government tax revenue thus improving Ireland’s economy eg in 2022 the primary sector accounted for approximately 4.5% of the jobs in Ireland -increases exports = primary industries export massive amounts of raw materials from Ireland, thus improving Ireland’s balance of payments through increasing exports exporter (Unit 7 Notes page 8) -reduces imports = food production in Ireland provides vital resources for the Irish populations, reducing need to import foreign food, improving our balance of payments -energy sources = primary sector provides Irish energy sources in Ireland such as solar and wind power as alternatives to importing oil, gas and petrol Primary Sector Trends -renewable energy = increased investment in wind and solar energy, Ireland is largely reliant on imported energy but many farms are adding wind turbines and solar panels to sheds so that they can produce and sell energy -veganism = there is heightened interest in veganism at the moment due to health and environmental reasons, demand for Irish meat and dairy products could be impacted by the trend for veganism eg IFA and EPA ‘meat free Monday’ Twitter argument -price pressures = large supermarkets with huge buying powers are putting increased pressure on Irish farmers to reduce beef prices for large orders, reducing farmer’s profit margins eg IFA is working to try to help keep beef farming as a viable option for farmers -milk quota abolition = due to the removal of EU milk quotas in 2015, milk output and the number of dairy farms have increased in Ireland -direct payments over reliance = the primary industry relies heavily on direct payments (payments made by the EU, under the Common Agricultural Policy and by the Exchequer to farmers), if these were reduced or removed, farming would not be feasible for many farms in Ireland (Unit 6 Notes page 35) -Brexit = economic uncertainty and the weakening of sterling has impacted the Irish agri- food sector, 50% of Irish beef exports go to the UK and with import duties being introduced, the demand for farm produce could fall -EU trade deals = EU agreements with Canada (2016) and Japan (2019) are helping to boost food exports to these countries 4 -forestry = the government has been funding forestry by farmers to help enhance the environment and to help Ireland reach its carbon emission target -organic food production = the continued global growth of organic food production boosts Ireland’s exports due to our global ‘green’ and ‘natural’ image -turf restrictions = the 2022 ban on the sale of turf, smoky coal, and wet wood in shops has resulted in some primary industries closing down Secondary Sector -this sector takes raw materials from the primary sector, processes these raw materials and produces the finished goods to sell -secondary sector includes manufacturing, agri-business and construction businesses -secondary sector manufactures products from the output materials produced by the primary sector (agriculture, forestry, fishing and mining) and transform it into a finished product -eg food processing, electronics, chemicals, pharmaceuticals, construction, agribusiness -agribusiness = secondary sector businesses that uses agricultural outputs as a source of raw materials eg Ireland is Europe's largest exporter of powdered milk infant formula with Kerry Group supplying up to 15% of the total global market for powdered infant formula, produced by grass-fed dairy cows, manufactured into a premium infant formula globally -construction = creation of infrastructure like roads, buildings, schools etc eg the recent regrowth of Irish construction has encouraged skilled labour that emigrated to return to Ireland, as there are more job opportunities now -pharmaceuticals = the largest value output for the secondary sector, includes globally recognised firms like Pfizer and Johnson & Johnson eg in 2021, Ireland exported $70.6B in pharmaceutical products, making it the 5th largest exporter of such in the world Secondary Sector Importance -employment = this sector creates direct employment (eg factory workers, architects, builders and managers) and indirect employment (eg farmers, insurance companies, banks), this creates money in the Irish economy and increases government revenue -increases exports = Ireland exports a lot of finished goods, improving the country's balance of payments 5 -reduces imports = the secondary sector processes finish shed goods that provide vital resources for the Irish populations, reducing need to import foreign manufactured products, improving our balance of payments -raw material consumer =secondary is an important sector because it uses local raw materials to make finished goods -foreign direct investment FDI = multinationals are attracted to asset up in Ireland especially the pharmaceutical, chemical and technology sectors for various reasons, they products are mainly exported thus further improving your balance of payments (Unit 7 Notes page 11) -infrastructure = the construction secondary industry builds vital roads, networks, buildings etc that are essential for Irish businesses, foreign companies and the public Secondary Sector Trends -whey products = the demand for grass-fed whey has grown because of its use in baking, as a food additive and in protein products -automation and robotics = the growth of automation is changing the skills that are required of labour and also decreasing the demand for some jobs -higher costs = increases in the Irish minimum wage, insurance costs, rent etc have all led to higher costs for businesses, which is making manufacturing export businesses less competitive -construction growth = construction tends to move with the economy and because of recent economic growth, output and the number of jobs in the construction industry have also grown, the increase in output and demand for skilled labour has led to labour shortages in some construction areas, which leads to higher house prices -pharmaceutical growth = this sector continues to grow every year, all of the top 10 pharmaceutical companies in the world have operations in Ireland eg Astellas creating new €300 million centre in Tralee Tertiary Sector -this sector of the economy provides services to business and the public, rather than producing goods and services for sale 6 -the tertiary sector acts like a support service for the primary and secondary sectors of the economy -eg banking, transport, communications, entertainment, retail, healthy etc -restaurants are classified as part of the tertiary sector even though they produce the meals that they sell because they are primarily in the servicing of food industry, not the manufacturing of food industry -approximately 75% of the Irish workforce is employed in the tertiary sector -this is the fastest growing sector in the Irish economy Tertiary Sector Importance -support sector = the tertiary sector acts like a support service for the primary and secondary sectors of the economy, it provides them with legal, financial and management services, which allows them to operate more efficiently -services = offers vital public and business services such as insurance eg IT support, enabling more businesses to expand online or branch out using apps or e-commerce -employment = approximately 75% of the Irish workforce is employed in the tertiary sector, it is the fastest growing economic sector and provides revenue to the government Tertiary Sector Trends -technology accessibility = poor or limited access to technology has meant that many businesses and citizens are unable to adequately use e-commerce platforms, especially in rural areas, the National Broadband Plan is a government strategy to help improve this -commercial rates = high commercial rates imposed by local authorities have placed small local retailers under huge pressure, as they try to compete with larger retailers -Brexit = the uncertainty still associated with Brexit has seen some firms relocate their bases and operations to Ireland, which is positive, however, there is also a negative impact on the export of goods and services to the UK through trade barriers and customs -increased costs = the economy almost at full employment with labour shortages in some sectors thus workers have high negotiating power in demanding higher wages, this reduces the profits of service firms and makes it more difficult for them to compete 7 -e-commerce = the growth in online purchasing has led to the closure of many retail outlets, many shops in rural towns have shut down and they can’t compete with the price and choice offered by large online retailers such as ASOS and Boohoo -automation = increased automation of services has led to unemployment eg in banks and train stations, cashiers have been replaced by machines -skill shortages = with global borders now reopening, many highly skilled workers are not moving abroad for higher wages and a better quality of life eg Irish doctors and nurses emigrating to Australia