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.