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.