Categories of Industry

The Primary Sector These are extractive industries including farming, fishing, mining, forestry etc Employment in these industries is decli ning

Problems in the Primary Sector Less EU Funding – Payments received from Europe are falling as new countries join Size – Irish farms / fishing boats are small by international standards Weather – It is becoming more unpredictable Quotas – Irish farmers / fishermen face limits on what they can produce / catch Consumer Confidence – diseases like foot and mouth have dented consumer confidence in food quality.

The Secondary Sector These industries convert raw materials into finished products Examples include Construction, Manufacturing and Agribusiness They can be foreign owned (transnationals) or Irish owned (indigenous)

Indigenous Firms These are Irish owned and locally based

Benefits of Indigenous Firms Loyalty – More likely to stay in Ireland Profits Reinvested – More likely to stay within the country Spin Off Business – More likely to use local suppliers Inspiration – Their success inspires other young entrepreneurs

Problems facing the Secondary Sector Low Wage Competition – From Eastern Europe and Asia Competition for DFI (Direct Foreign Investment) – Ireland faces increasing competition from other countries to attract transnationals Research and Development – Irish firms do not spend enough on it Size – Irish firms are small by International standards

Solutions to Secondary Sector Problems Compete on Quality – Aim to have the best product rather than the cheapest Develop the Indigenous Sector – More grants etc for Irish firms Spend more on Research and Development Increase in Size – Use mergers / takeovers to get bigger World Class Business – Aim to match the best companies in the world

The Tertiary Sector This is also known as the Services sector Examples include banking, insurance etc. This is the fastest growing sector

Importance of the Tertiary Sector Tourism remains hugely important to Ireland – Although visitor numbers are down Service Industries are Labour Intensive – Provide a lot of jobs The majority are Indigenous – Irish owned like Monart in Wexford Irish businesses selling Services abroad – We export services like tourism, Betting etc The Primary and Secondary sectors are in decline