1. 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...

2. Bigger picture
What will the future of industries be across the world?

3. 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.

4. 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....

5. Why? Cheaper land and labour in poorer parts of the world
Fast and cheap transport to move goods from country to country
Modern communication networks

6. Read book page 150 and 151
Outline changes in employment in the secondary sector in the UK during the last 50 years.
What are the main factors for the decline in the secondary industry in the UK
What is a TNC?
What is meant by globalisation?
The employment in the secondary industry in the UK has decline due to deindustrialisation – Give another reason for its decline
What is the difference between decline in employment and decline in output?
Why does automation lead to the decline of employment?

7. 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.

8. Another question
Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)

10. Explain what is meant by the “global shift in manufacturing”

12. Growth of TNCs They can set up a factory
Have raw materials from a different country
Transport the manufactured goods

13. Globalisation

14. Globalisation
Watch the clip and write the name of all countries mentioned

15. 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.

16. TNCs
These 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.
Location factors
Governments
Incentives to set up factories within their borders such as tax exemption.
Energy
Due to the National Grid system, electricity can be made available almost anywhere.
Communication
because of speed and efficiency of modern communications, a manufacturing company can keep in immediate touch with factories scattered in different countries.
Footloose Industries
Their location is no longer tied down to nearness of raw materials and
market.

20. Summary

21. Suggest reasons for the decline of secondary industry in the UK
Suggest reasons for the decline of secondary industry in the UK. (4 marks)
Answer this question in your books.
0-1 mark
Identify one reason,
in a undeveloped statement
with no example .
2 marks
Describe a number of reasons,
But no examples or
Added detail.
3-4 marks
Give at least two reasons
In detail,
With examples, figures and data.

23. Another question
Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)

24. Decline of British Steel
Reasons 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 It merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group on 6 October Corus itself was taken over in March 2007 by the Indian steel operator Tata Steel.

25. June 2011

27. Jan 2012

29. Next lesson…
So where have the industries gone?