3.2 Classification of Industries Primary vs Secondary vs Tertiary Industries

Primary Industry An economic activity dealing with the collecting or making available of naturally occurring material Eg. Processing of mineral, agricultural & forest raw materials

Secondary Industry An economic activity in which raw materials provided by the primary industry are transformed into something more directly useful to people. Normally the main force behind economic development of a country. The level of technology determines the number of people employed and the types of outputs of secondary industries

Tertiary Industry An economic activity in which services are provided to the primary and secondary industries, to the community and to the individual. Tertiary industries involve the provision of goods and services. Eg. Transport, retailing. In developed countries, a large number of people are employed in tertiary industries.

High Tech vs Low Tech High-tech industries are based on research, development and innovations. To identify whether an industry is high or low tech, we can judge by the amount spent on R & D.

What is value added? Difference between the cost of manufacturing inputs and the value of the finished products An industry with low production costs and high value value finished products is a high value-added industry. Eg. Electronics, Aerospace etc.

Labour & Capital Intensive Industries Labour intensive refer to activities that employ a large number of workers per unit of output Capital intensive refers to activities that utilise machinery and have fewer workers per unit of output

Where are the light and heavy industries located in Singapore? Light vs Heavy Light industry involves the production of goods that are light in weight, high in value. Eg. Garment factories Heavy industry involves the production of goods from large quantities of often bulky and heavy raw materials. Eg. Iron and Steel industry. Where are the light and heavy industries located in Singapore?

To conclude… Industries are in constant state of change. New technology and changes in market demands can all lead to a shift in the types of industries in a country. The most common way of classifying manufacturing activities will be using the SIC. TB, pg. 73