1. Sectors of industry

2. Primary sector
The primary sector is the first stage of production and is concerned with the extraction of raw materials.
Industries in the primary sector include:
Fishing
Farming
Mining and quarrying
Forestry

3. Secondary sector
The secondary sector involves manufacturing and processing the raw materials.
Examples include:
Cabinet makers
Car manufacturers
Building and construction

4. Tertiary sector
The tertiary sector is concerned with providing services for others.
The tertiary sector includes:
Retail
Insurance
Entertainment
Tourism
Education
Armed forces

5. Chain of production
Products move through the three sectors of industry before being sold to the consumer. This is called the chain of production.
For example:
A forester cuts down a tree (primary)
The wood is made into a table (secondary)
The table is sold in a department store (tertiary)

6. Adding value
At each stage in the chain of production, value is added to the product. ‘Added value’ is the difference between the price the consumer is willing to pay and the cost of making a product.

7. Ways to add value Value can be added through
Production – turning raw materials into useful goods
Convenience and speed
Branding
Quality
Design
Unique selling proposition (USP)

8. Changing nature of the UK sectors
In the UK, the importance of the primary sector has fallen and it now employs fewer workers.
The secondary sector has also declined in importance and many manufacturing firms have closed.
The tertiary sector has enjoyed a large increase in importance with many jobs created in service industries.