UNIT 7. INDUSTRY 1. THE SECONDARY SECTOR This sector consists of construction, energy production, and industry: Construction involves buildings and infrastructure. It requires many raw materials and workforce. Energy production transforms fuel into forms of energy, such as heat or electricity. Large facilities are needed in order to accomplish that process and there are several ways to produce energy. Industry transforms raw materials into finished (for direct consumption) or semi-finished (used as materials in other industrial processes) products. Before industry existed craftsmen manufactured products and it was mostly focused on selfconsumption: Industry developed during the Industrial Revolution in the 18th century. Industrial process involves: o Machines are used as a source of energy. o Workers do their tasks in a certain place called factory. o There is work division by which every worker is specialised. Industry needs some elements to develop: Raw materials are the natural products that industry transforms into finished products. Energy sources are those natural resources that provide the power so that the industrial transformation may be accomplished. Production factors are workers, the capital and technology. Industry is basic in the development of a country; hence an industrialised country is associated to a developed country. On the contrary, a non-industrialised country is considered underdeveloped. 1.1. Raw materials They are resources that are transformed process into finished or semi-finished products through industry. Raw materials can have different origins: Animal origin, such as milk, leather, silk or wool. Vegetable origin, like rubber, cotton, wood or flax. Mineral origin, it has several categories: Metallic minerals. We can find iron, bauxite, copper, lead, zinc, nickel, gold, silver, platinum... Non-metallic minerals, such as phosphates, clay, limestone, marble, gypsum, kaolin, salt, sulphur... Energy minerals like petrol, coal, natural gas, uranium... Artificial origin, like plastic, PVC, rayon, nylon... 1.2. Energy sources They are the resources that provide power to operate machines. o We can find two kinds of sources: 1
o o Renewable sources. They are obtained from unlimited natural resources. They developed after the oil crisis of 1973. Non-renewable sources. They come from limited natural resources that can be used up. Most of them have fossil origins. We can find different sources of non-renewable energy: Coal. Its origin comes from vegetables that have been buried under the ground or shallow water and it is decomposed and solidified until they have been converted into minerals with a lot of carbon. Coal is used for producing electricity in power stations or for heating systems. It represents 22% of all the consumed energy. USA, China, India, Australia, Russia, and South Africa are the main producers. o Oil (Petroleum). It is the result of accumulated plankton on the bottom of the sea which becomes hydrocarbon because of pressure and temperatures. Oil: once extracted, oil needs to be refined. Some products may be obtained from oil, such as gasoline, gasoil, butane, kerosene, lubricants, plastic, asphalt... It is used for industry, means of transportation, and to produce electricity in thermal plants. It represents 42% of all the consumed energy. Saudi Arabia, Russia, Iraq, Iran, the United Arab Emirates, the USA, Mexico, and Venezuela are some of the main producers which created the Organisation of Petroleum Exporting Countries (OPEC) in 1960, which controls circa 78% of world s reserves. The biggest consumers are the industrialised and most populated countries because of industry, transportation and home consumption. Natural gas. Its origin is related to oil and it may appear together in a pocket above. Some other times gas is found with no petrol. It is used for industry, homes, for production of electricity. It represents 23% of all the consumed energy. The main producing countries are Russia, USA, Canada, the UK, the Netherlands, Norway, and Algeria. Nuclear energy. It is based on the use of minerals with radioactive elements, such as uranium. It is mostly used to generate electricity in nuclear power stations through a process of nuclear fission. It causes many environmental problems to store its waste and there are risks of nuclear accidents. Many nuclear power stations have been shut down to prevent any risk. It represents 7% of all the consumed energy. The main producing countries are the USA, France, Germany, and Japan. There are different sources of renewable energy: Hydroelectric power. It is generated by using the power of falling water masses from a certain height. 2
Water turbines transform that water into energy, mostly electricity. It is used in industry and homes as electricity. It represents 7% of all the consumed energy. China, USA, Canada, Brazil, and Russia are the main producers. Solar energy. Electricity is obtained by the heat caused by the sun beams. It is captured by solar panels with photovoltaic cells. There are two types of solar energy: Thermal solar uses collectors to capture the Sun s heat and make water hot, which flows through tubes in the collector and can be stored in tanks. Photovoltaic generates electricity directly from sunlight. Its problems base on the irregularity of insolation and the difficulty of storage. The USA, Germany, Australia, and Canada are main producers. Wind power. Electricity is generated by using the power of wind which is collected by large mills that move that energy to turbines. It causes electricity basing on the number of mills (wind turbines) and wind speed. These wind turbines can be on land or offshore. Its problems are the irregularity of the wind and the visual and acoustic impact of the wind turbines. Germany, Spain, Denmark, and the USA are the main producing countries. Biomass energy. It is produced by recycling waste (agricultural, animal, industrial, urban...). That waste is burnt and it gets heat and gases that produce fuel and gas for domestic heating systems and industries. The USA, Sweden, and France are the main producers. Geothermal energy. It makes the use of internal heat of the Earth (either hot springs or water vapour). It is mostly used for heating system and to produce electricity. Its main problem is that is can just be produced in areas with volcanic or seismic activities. The main producers are the USA, Iceland, the Philippines, and Mexico. Tidal power (also wave power). It bases on the use of waves and tides to produce electricity. It is very little used since it requires a high investment and it may damage environment. The current main producing countries are France, the UK, and Canada. The main secondary energy is electricity, which is produced by the different previous processes. It cannot be extracted, so it needs to be produced. It can be transported easily over long distances. It is a clean energy since it does not generate any waste. It converts easily to other types of energy. 3
It can be obtained by thermal power stations, nuclear power stations or though renewable means such as solar, wind, hydroelectric powers. The consumption of energy measures the development of a country or region: It is quite high in the developed countries due to their high levels of industrialisation. Many countries consume more energy that what they produce; hence they import it from abroad. 1.3. Human resources They are the people who intervene in the producing process. In the developed countries the working conditions are controlled, such as working hours, wages, freedom of strike, unemployment subsidies, paid holidays, and health insurance. Instead, in the developing countries working days are really long, there are not breaks, and there are minimum health and safety standards. Moreover, salaries are low and workers do not have paid holidays, unemployment benefits or health insurance. 1.4. Capital Capital is needed for industrial activities and it is composed of money, buildings, machinery... It can be provided by private companies, public companies (owned by the State) or both (mixed companies). Money is basic for set up the industry and to pay the workers. Companies have different characteristics: They can be individual (one person provides the capital) or collective (several people do it). They can be small (less than 50 workers), medium-sized (50-249 workers) or large (equal or more than 250 workers). In Spain it is common to have small- and medium-sized companies (pymes). Multinationals are those companies that work worldwide although their see may be in the USA, Japan or Europe. They mostly work on food, automobiles, chemistry, electronics, and computing. Companies merge to increase their profits; hence there can be three kinds of processes: o Vertical integration (cartel). It is the grouping of companies that participate in all the different stages of production. They integrate from the extraction of raw materials until the sale of the produce. o Horizontal concentration (trust). Companies involved in the same industrial activity join. o Financial concentration (holding). Some companies invest money in other companies to control over different industrial sectors. 2. TYPES OF INDUSTRY 2.1. Heavy industry Heavy industry transforms raw materials into semi-finished products and it has the following characteristics: High investment in raw materials and energy sources. They are located close to the deposits of raw materials and energy sources, or next to 4
receiving centres, such as harbours. They are very polluting; hence they are outside towns and cities. They need large spaces to settle their facilities. Metallurgical industry. This type of industry produces metals and metal products. The sector that produces steel and iron is called siderurgical industry. The main iron producers are China, Brazil, Australia and India. The main steel producers are China, Europe, the USA, Japan, and Russia. The industry of aluminium is very important since it is a highly demanded metal for other industries such as automobile, shipbuilding, high-tension lines... It is very developed in countries like China, Russia, Canada, the USA, and Australia. The industry of copper is mostly used for electricity, automobiles, and aeronautical industry. Chile, Japan, Russia, and China are the main producing countries. Heavy chemical industry. It produces products that are necessary for other industries. It makes sulphuric acid, nitrogen, phosphates, caustic soda and derivates from oil and coal. The main producers are the USA, Canada, Germany, Mexico, Japan and Russia. 2.2. Capital goods industry Capital goods industry transforms the semi-finished products from heavy industry into finished goods. It is mostly located in the USA, Europe, Russia, Japan, and some Southeast Asian countries. There are many types of industry that belong to this sector: Construction materials. It produces cement and concrete. Industrial and agricultural machinery. It makes machines and equipment for agricultural and industrial machinery. Transport materials. It can be either for air, land or sea transportation: Aeronautics: planes, helicopters, light aircraft. Naval industry: boats. Railway material: tracks and carriages. Aerospace. It produces space satellites, and space ships. Timber and paper. It makes wood pulp and paper. Electrical, electronic and computing. It makes devices that improve industrial processes such as microprocessors, microchips, robots, computing equipments and programmes, microscopes... 2.3. Light industry or consumer goods industry Consumer goods industry makes products which are done for direct consumption: It consumes very few raw materials and energy resources compared to heavy and capital goods industry. It is less polluting but it modifies landscape. o It is normally located next to cities or transport knots in industrial parks. There can be different kinds of industries in this sector: food, light chemical products, electronics and computing, textiles... The size of these industries varies a lot. 5
Food industry. It transforms and manipulates every type of food (meat, vegetable, fish, and dairy products). The UK, Switzerland, the USA, and the Netherlands are the main producers. Automobile industry. It makes industrial vehicles (vans, lorries, buses...) and vehicles for individual use (cars, motorbikes). It is common in Europe, Japan, the USA, and some East Asian countries such as South Korea and China. This sub-sector also stimulates the creation of other industrial branches such as tires, windscreens, textile products, computing and electronic systems... Light chemical industry. It makes pharmaceutical, photographic, cosmetic products, and plastics. France, Germany, the UK and Italy are major producers. Electronics and computing industry. It makes equipments such as computers, televisions, telephones, multimedia recorders and players, cameras... It is widely developed in Europe, the USA, Japan, China, and South Korea. Textile industry. It includes some groups like spinning and weaving, clothing industry and other articles (rugs, handbags, belts, shoes...). It uses both natural raw materials (flax, wool, cotton, silk...) and synthetic raw materials (rayon, nylon, Tergal, viscose...). The traditional producers were France, Belgium, the UK, and the Netherlands, although they have been recently replaced by China. 3. INDUSTRIAL SPACE There are some factors that affect the location of industries: Proximity to raw materials and energy sources. Existence of population that can work in it and buy its products. Means of transportation and communication. Economic development of the area and presence of other industries. Supply and price of the soil. Policies that favour industrialisation. As stated before the location of the different sub-sectors change: Heavy industry is usually located next to mineral deposits and sources of energy or close to receiving areas (harbours). Light industry is usually close to markets, knots of communication and populated areas. Once industry settles, there can be two types of industrial space: Dispersed spaces. There are isolated and dispersed industries. Grouped spaces. They are industrial areas on the periphery of the cities. There can be: o Industrial park. They are in the suburbs of the cities. They have large premises for industry and services such as cafeterias or restaurants. Light industry is common here. o Technology park. They are really environmental spaces where high tech industry is located. There is also research centres linked to them such as universities. 4. CHANGES IN INDUSTRIAL PRODUCTION 6
Recently there have been some changes in industrial production: Processes of industrial production. Assembly lines have been robotised and many computer programmes, digital technology and communication networks have been introduced to produce more in less time. Constant innovations. Companies and governments invest in RDI; hence there is a constant renovation of technology and how it is applied in industry. Large companies have their own RDI departments or cooperate with universities. New materials. More quality and ecological products have been made because of the application of new technologies: Polymer concrete (light material used in construction, it does not use cement, but polymers), Biopol (biodegradable plastic), Nomex (plastic that can resist high temperatures). Many industries use recycled materials to produce new ones (scrap metal to produce steel). 5. ENVIRONMENTAL CONSEQUENCES Industry has modified the appearance of cities, harbours, and areas close to mines. It has caused some negative effects on the environment. In order to get sustainable development some measures must be taken to balance economic growth and to protect the environment. The negative effects are: Overexploitation of natural resources, such as raw materials and energy sources. Industrial waste pollutes waters since it is thrown to rivers and seas. Smoke and gases pollute the atmosphere and cause the following effects: Acid rain. Some energy sources such as coal and petrol produce acids (dioxide sulphur SO 2 and dioxide nitrogen NO 2 ) that mix with water vapour in the atmosphere and fall as rain. It causes the reduction of the growth of the trees, impoverishes the soil and it increases the acidity of waters (rivers, lakes), what kills fish. Greenhouse effect. The emission of CO 2 by industry and transport increases temperatures because the heat that comes from solar radiations does not go away. It also causes a change in rainfall and winds and thaws perpetual ice areas. Reduction of the ozone layer, which protects use from UV Rays. It is caused by the use of several gases such as CFC, which have been banned. The corrective measures can be: To promote clean technology by implementing purification systems, filters... There must be environmental policies in order to improve: o Waste management must be improved by recycling and by using biodegradable materials. o Environmental impact studies should be done before setting up a factory to analyse its consequences. o To rehabilitate the degraded and abandoned industrial areas. To reduce the consumption of resources and to recycle waste. Some measures could be accomplished: Raw materials may be better exploited by manufacturing more durable products and by recycling materials. To save energy and to use renewable energy sources. 7