Module 1 unit 2

Page 1: Introduction to the Secondary Sector

• Definition: The secondary sector is where finished, tangible goods are created.

• Focus Areas:

  • Involves production and construction.

• Growth Dynamics:

  • Generally capital- and skills-intensive growth.

• Government Intervention:

  • Introduction of the Integrated Manufacturing Strategy (IMS).

  • Aim to redefine competitive advantage in South Africa.

  • Nurturing key industries and ensuring investment for growth and job creation.

Page 2: Types of Businesses in the Secondary Sector

• Function of Secondary Sector Businesses:

  • These businesses process and transform raw materials and foodstuffs into consumer goods.

• Key Industries:

  • Manufacturing (e.g., steel goods, chemical products).

  • Electricity, gas, and water production.

  • Construction industry (houses, roads, dams).

Page 3: Manufacturing Enterprises

• Production Types:

  • Enterprises use raw materials to create final or semi-final goods.

• Examples:

  • Semi-final goods (e.g., flour) require further processing into final goods (e.g., bread).

• Role in Economy:

  • Manufacturing enterprises operate primarily in factories producing various goods.

Page 4: Skills Required in the Secondary Sector

• Skill Requirements:

  • Successful entry demands advanced skills (e.g., apprenticeship training) and capital.

  • Wide variety of qualifications needed.

• Training Opportunities:

  • Unskilled workers can receive specific on-the-job training.

• Types of skilled labor needed:

  • Skilled artisans (plumbers, electricians, boiler makers).

  • Highly trained professionals (engineers, architects).

Page 5: Sustainable Use of Resources

• Resource Scarcity:

  • Factors of production (resources) are limited, necessitating efficiency.

• Impact of Efficient Resource Use:

  • Efficient and effective use maximizes goods and services produced, satisfying more needs and wants.

• Economic Contribution:

  • Efficient use contributes to economic wealth and living standards for all.

Page 6: Capital in the Secondary Sector

• Importance of Capital:

  • Capital encompasses factories, machines, and tools used in production.

• Defining Capital Goods:

  • Created specifically to produce other goods and services.

• Investment Necessity:

  • Essential for businesses to invest in capital goods for success in the secondary sector.

Page 7: Human Capital and Industry Types

• Human Capital Importance:

  • Increasingly vital in modern production processes.

  • Balancing skilled labor availability and capital resources for production techniques.

• Industry Classification:

  • Light Industry:

    • Less capital-intensive, consumer-oriented, producing smaller goods for end users.

  • Heavy Industry:

    • Characteristics include large products, complex processes, and significant energy consumption.

• Environmental Concerns:

  • Heavy industries often produce waste and pollution.