The collapse of the secondary Industry
Objective:•To be able to explain the reasons for the decline in the secondary sector in the UK
Key Words:•TNCs•Industrialisation•Deindustrialisation•Automation•Globalisation
Recap Task :•Why were there a collapse in the fishing and mining industry...
Bigger picture
What will the future of industries be across the world?
What is the Secondary Sector...?
What types of jobs are included in the secondary sector?
• Discuss with your partner the types of jobs found in the secondary sector.
• List them in your books.
The Decline of the UK’s Secondary Sector...
• Fifty years ago, manufacturing produced 40% of the UK’s economic wealth and employed a third of the workforce.
• Today it only produces 11% of the wealth and employs less than 10% of the workforce.
Factories closed in the UK
The things they were making can now be made more cheaply elsewhere....
• Cheaper land and labour in poorer parts of the world
• Fast and cheap transport to move goods from country to country
• Modern communication networks
Why?
Read book page 150 and 151
1) Outline changes in employment in the secondary sector in the UK during the last 50 years.
2) What are the main factors for the decline in the secondary industry in the UK
3) What is a TNC?4) What is meant by globalisation?5) The employment in the secondary industry in the UK has
decline due to deindustrialisation – Give another reason for its decline
6) What is the difference between decline in employment and decline in output?
7) Why does automation lead to the decline of employment?
Reasons for the decline• De-industrialisation in the UK due movement of manufacturing from HICs to MICs/LICs.
This has been as a result of cheaper land and lower wages in less developed countries and due to fast and efficient methods of transporting goods.
• Improved communication networks through the global superhighway i.e. use of the internet and other methods of communication for businesses to keep in touch with suppliers.
• Withdrawal of UK government support that had kept factories open e.g. iron and steel works.
• Less people working in manufacturing due to automation (goods produced by machine instead of humans). UK still predicted to be in the top 10 manufacturing nations by 2020.
• New economy of high tech industries e.g. in research and design, business and tourism (tertiary and quaternary sector) now employ more people than manufacturing. Unfortunately the jobs are often in different locations e.g. south-east of the UK.
• Globalisation – Most countries are becoming tied into one huge global economy. Each country has its part to play – which might be as a supplier of raw materials or cheap labour or as a consumer market or location for the invention of new technologies.
• The growth of transnational corporations (TNCs) has also played a part. These are companies that operate on a global scale e.g. they set up a factory in China, assemble raw materials e.g. from Africa and Australia and then transport goods for sale to the major markets in Europe and North America.
Another question
• Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)
Explain what is meant by the “global shift in manufacturing”
Growth of TNCs
They can set up a factoryHave raw materials from a different countryTransport the manufactured goods
Globalisation
Globalisation
Watch the clip and write the name of all countries mentioned
Globalisation• Reasons for globalisation• Firms can keep in contact with producers easily
and quickly using the internet.• Developments in transport technology: goods
can be moved around the world quickly and easily.
• Development of aircraft and containers, efficient motorway networks which cross Europe.
Location factors
TNCsThese companies are locating in the cheapest and therefore most profitable locations.
Transport Now much faster and cheaper, therefore distance is no longer as significant as it used to be.
Communicationbecause of speed and efficiency of modern communications, a manufacturing company can keep in immediate touch with factories scattered in different countries.
Energy Due to the National Grid system, electricity can be made available almost anywhere.
GovernmentsIncentives to set up factories within their borders such as tax exemption.
Footloose IndustriesTheir location is no longer tied down to nearness of raw materials and market.
Summary
Suggest reasons for the decline of secondary industry in the UK.(4 marks)
Answer this questionin your books.
0-1 markIdentify one reason, in a undeveloped statement with no example .
2 marksDescribe a number of reasons,But no examples orAdded detail.
3-4 marksGive at least two reasonsIn detail,With examples, figures and data.
Another question
• Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)
Decline of British SteelReasons for the decline:• Plants operating under capacity (low efficiency)• Outdated technology• Higher coal and oil costs• Lack of funds for capital improvement,• Increasing world market competition. By the 1970s the Labour government had its main goal to keep employment high in
the declining industry. Since British Steel was a main employer in depressed regions, it had to keep many mills
and facilities operating at a loss. In the 1980s, Conservative Prime Minister Margaret Thatcher privatised BSC (British
Steel Company) as British Steel. Under private control the company has dramatically cut its work force and undergone
a radical re-organisation and massive capital investment to again become competitive in the world marketplace.
British Steel was privatised in 1988. It merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group on 6 October 1999. Corus itself was taken over in March 2007 by the Indian steel operator Tata Steel.
June 2011
Jan 2012
NEXT LESSON…
So where have the industries gone?
