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What is an industry?

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Key points

  • There are four main types of industry: primary, secondary, tertiary and quaternary.
  • The type of industry a country specialises in changes over time.
  • There are social, environmental and economic impacts of industry.
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Types of industry

Industry is any economic activity which creates jobs and generates income.

There are four main types of industry:

  • Primary sector
  • Secondary sector
  • Tertiary sector
  • Quaternary sector
An image with an oil rig labelled as primary production and extraction, secondary production is a factory with the labels manufacture and assembly, tertiary production is an image of storage containers and a petrol station, with the labels, transport, warehousing, advertising and selling.
Figure caption,
There are four main types of industry: primary, secondary, tertiary, quaternary

Primary industry involves the production or extraction of and includes forestry, farming, fishing and mining.

Secondary industry is the manufacturing of goods. For example, the north west of England used to have a thriving textile industry making cloth from cotton, China has a thriving manufacturing sector producing electronics, and Germany is one of the largest manufacturer of cars.

A video explaining primary and secondary industries.

Tertiary industry involves providing services to people, for example a cleaner or a doctor.

Quaternary industry is the newest sector and focuses on or high-tech industries such as ICT (information and communication technologies) and research and development.

A video explaining tertiary and quaternary industries, what they are and how they fit into global economy.

What are some examples of primary industries?

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Phases of industry

What industry or industries a country focuses on changes over time and can be shown using the Clark Fisher model.

The model is split into three phases:

  1. The phase 鈥 a country is mostly focused on the primary sector and the main activity is likely to be agriculture.
  2. The industrial phase 鈥 secondary and tertiary sectors increase in importance. Primary sector activities start to decline. For example, in cities such as Manchester and later Li猫ge in Belgium during the .
  3. The phase 鈥 manufacturing starts to decline as the tertiary sector becomes the most important sector and start to develop. Only a very small percentage of the overall population will now be involved in primary industries.
A graph showing how employment numbers vary across primary, secondary, tertiary and quaternary sectors in pre-industry, industrial revolution and post industry times.
Figure caption,
The Clark Fisher model shows how a country changes its focus.

Question

In the pre-industrial phase, which sector employs the most people?

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The effects of industry

Different countries around the world are at different stages of industrial development and there are regional variations within countries. Countries rely on each other for the manufacture and sale of goods to take place. For example, raw materials may be bought in one country, used to manufacture goods in another, and then sold in a third country. This can have positive benefits as it improves co-operation between countries through international but can also be a source of conflict.

As countries develop, they move through the phases of the Clark Fisher model. When a country no longer mainly manufactures goods and moves into the service sector, this is known as de-industrialisation.

Economic effects

A woman sat on a bench with a large pile of socks in front of her whilst she makes them.
Image caption,
In some countries wages are lower, for example it is cheaper to pay this person to make socks in China, than it would be to pay someone in the UK.

The transition of phases (Clark Fisher model) can happen for a number of reasons but one of the most significant is the of manufacturing from a high-income country (HIC) to a low-income country (LIC) or a newly emerging economy (NEE). An example of this is the relocation of aeroplane engine production from Barnoldswick in Lancashire, in the UK, to Singapore. This is done for a number of reasons:

  • To increase profits by exploiting the lower cost of by paying lower wages.
  • To take advantage of less rigorous rules for example fewer environmental or health and safety laws.
A woman sat on a bench with a large pile of socks in front of her whilst she makes them.
Image caption,
In some countries wages are lower, for example it is cheaper to pay this person to make socks in China, than it would be to pay someone in the UK.

Social effects

A crowd of miners wearing overalls with hard hats and the lights on their hard hats turned on.
Image caption,
Spanish miners demonstrating against industry cuts in 2012.

When primary and secondary industries, and their workers, are abandoned in favour of new industries this can lead to within a country.

This happened in the United Kingdom in the 1980s as the government decided to move from the secondary sector to a new phase of post-industrialism, where the tertiary and quaternary sectors were encouraged.

The decline in primary and secondary industries in many places has led to unemployment and many other .

The countries who benefit from a decline elsewhere in primary and secondary industries are the (NEEs). Nigeria, for example, as it moves into the industrial phase of their development and begins to develop tertiary industries, can use the money generated to improve schools, hospitals and infrastructure in the country and provide jobs for the workforce.

A crowd of miners wearing overalls with hard hats and the lights on their hard hats turned on.
Image caption,
Spanish miners demonstrating against industry cuts in 2012.

Environmental effects

Water running down into a river.
Image caption,
Toxic water from tanneries running straight into the Buriganga River (Bangladesh), which turns black because of the pollutants. This river used to form part of the end of the Ganges.

There may also be negatives for these countries as industry can be polluting.

For example, leather manufacturing is one of the largest causes of pollution in the River Ganges in India. This includes waste water from factories being released into rivers and lakes along with chemicals.

Increasingly there are calls for a new 鈥楪reen Industrial Revolution鈥 in manufacturing with a move away from polluting industries such as energy production using fossil fuels towards the development of green, environmentally friendly, technology such as wind turbines.

In 2020 the UK government announced a ten point plan for a green industrial revolution to support green jobs and move towards a .

Water running down into a river.
Image caption,
Toxic water from tanneries running straight into the Buriganga River (Bangladesh), which turns black because of the pollutants. This river used to form part of the end of the Ganges.

Political effects

Two people sifting through a large pile of beans on a flat surface.
Image caption,
Workers sorting cocoa beans by quality, before they are exported to be made into chocolate in Bahia state (Brazil)

Low-income countries (LICs) tend to still rely on the export of raw materials, such as cocoa beans, to more developed countries to be converted into manufactured goods, such as chocolate. This can lead to exploitation of the poorer countries by those who are richer and reinforces the dominance of already powerful nations.

Two people sifting through a large pile of beans on a flat surface.
Image caption,
Workers sorting cocoa beans by quality, before they are exported to be made into chocolate in Bahia state (Brazil)

Question

When a country no longer focuses on manufacturing goods and moves into the service sector what is this process called?

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Play the Planet Planners game! game

Make decisions for the planet in this KS3 geography game.

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