Secondary Sector

Secondary Sector:

All manufacturing, energy production and construction activities. However, the term is often used to describe manufacturing alone. In relation to manufacturing, several trends have been discernible in the UK:

•    The secondary sector faces competition from imports. Some products lose their comparative advantage as developing countries become cheaper sources of standard consumer goods and semi-manufactures (processed raw materials).
•    Other products have lost their comparative advantage to imports coming mainly from developed countries, such as cars.
•    Some manufacturers compete very successfully and have expanded exports in a wide range of products, such as speciality chemicals.
•    Most manufacturing has become more capital-intensive. Productivity has increased. Employment in the secondary sector has fallen dramatically.
•    In developing countries, it is common for the secondary sector to be growing fastest.


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