Secondary Economic Activities 25 26 0 Tertiary Economic

Secondary Economic Activities 25

26. 0 Tertiary Economic Activities Secondary Economic Activities Learning Intentions You will be able to: § Explain what a ‘secondary economic activity’ is. § Explain the factors that influence the location of industry. § Investigate an industry in its local area. § Explain why industries might change location over time. 25

25. 1 What are Secondary Economic Activities? Secondary Economic Activities Secondary economic activities refer to the making or manufacturing of products, often in factories. Inputs Raw/Resource materials Processed/Changed Manufacturing Outputs Finished/semi-products; heavy or light 25

25. 1 What are Secondary Economic Activities? Manufacturing a cup of tea! Secondary Economic Activities 25

25. 1 What are Secondary Economic Activities? Secondary Economic Activities Functions of Secondary Economic Activities To bring together the raw materials and resources needed to make a new product. To process the raw materials and resources; sometimes this is done through a number of different activities. To produce a product that is usually sold for profit and that is useful for consumers. 25

25. 2 Location of Industry Secondary Economic Activities There a number of factors that must be considered when a company is choosing a location for their factory/industry. Raw Material Transport Services The type of raw (resource) materials used by the factory will help decide on its location. A factory needs to be able to get raw materials in from suppliers and finished products out to market. Factories need services such as water, waste disposal, electricity, Wi-Fi and broadband in order to do business. 25

25. 2 Location of Industry Secondary Economic Activities There a number of factors that must be considered when a company is choosing a location for their factory/industry. Labour Factories will locate near towns and cities, as these places will provide the workforce. They may need skilled or unskilled workers. Market Depending on the product, the factory may or may not choose to locate near its target market. Linkages If a factory relies on another company’s products, it may locate factories nearby (to link up) to reduce transport time and costs. 25

25. 2 Location of Industry Secondary Economic Activities There a number of factors that must be considered when a company is choosing a location for their factory/industry. Capital Government & EU Policy Personal Preferences A company needs capital to cover costs, such as building a factory, transport costs, buying raw material and workers’ pay. The Irish government has a number of agencies that help Irish companies by giving them loans or grants. A person setting up a new business or building a new factory may wish to do so where they live or in a location they prefer. 25

25. 2 Location of Industry Secondary Economic Activities 25 Government Supports IDA Ireland partners with overseas companies to secure new investment in Ireland. They do this by: Collaborating with foreign investors in Ireland to help them expand develop their operations in Ireland. Offering funding and grants in certain circumstances to those considering foreign direct investment in Ireland.

25. 2 Location of Industry Secondary Economic Activities 25 Government Supports Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets. All services are geared towards helping Irish companies win export sales. For example: Funding supports Export assistance Supports to develop competitiveness Incentives to stimulate in-company Research & Development in new products, services and processes

25. 2 Location of Industry Government Supports Secondary Economic Activities 25

25. 3 Types of Industry Heavy industry Footloose industry Secondary Economic Activities Light industry Multinational Corporation (MNC) 25

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete History: Banagher Precast Concrete Limited was set up in 1976 and is located at Queen Street, Banagher, Co. Offaly.

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete Raw/resource material: Banagher Concrete is located 2. 4 km away from Lusmagh Quarry. This limestone quarry provides 80% of Banagher Concrete’s resource materials, such as sand gravel. Silica is another important resource material. This mineral is found in the area’s soil.

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete Labour: Banagher Concrete currently employs approximately 200 people. The workforce is supplied by the town of Banagher, which has a population of 1, 700 people. The nearby towns of Birr, Kilcormac and Tullamore provide other sources of workforce.

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete Transport facilities: To transport the large bridge beams produced by the factory, Banagher Concrete built a road to bypass the town. The factory is located thirty minutes from the M 6 motorway. Banagher Precast Concrete can transport their product to Dublin Port within two hours.

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete Finished product: Banagher Concrete’s main product is precast concrete. This means they can shape concrete into many different forms to meet the needs of their market. Their concrete is used in the production of bridge beams, cattle slats, car parks, tunnel segments (e. g. Dublin Port Tunnel) and stadiums.

Secondary Economic Activities 25 13. 2 Forecasting the Weather Case Study: Heavy Industry – Banagher Precast Concrete Markets: Banagher Concrete has markets throughout the world. For example, Banagher Concrete has provided precast concrete for the construction of London’s shipping port.

25. 4 Change over Time in the Location of Industry Secondary Economic Activities 25 Factors that may cause an industry to change its location include: a change in the size of the industry a change in demand for the product a change in the function of the company Growth in industry occur when costs of production rise, because the number of companies involved with that industry increases. Why does this happen? When a product becomes popular and new markets for it are created, there is an increase in demand for the product. New factories in new locations need to be established to meet the growing demand.

13. 2 Forecasting the Weather Case Study: Guinness Secondary Economic Activities Guinness began brewing its product at St James’s Gate Brewery in Dublin city in 1759. Today it is brewed in almost fifty countries. The product is available in over 120 countries. St James’s Gate Brewery is still a working brewery but it is now also a major tourist attraction. 25

Secondary Economic Activities Video: Wind Farms 25