Industrial Revolutions and Economic Sectors
The First Industrial Revolution
In the mid-18th century, some European regions began to move from artisanal to industrial production. Steam-powered machines replaced manual labor, and industrial work moved from workshops to factories.
Factories were initially built next to rivers to utilize the energy of running water. Later, with coal becoming a common energy source, they relocated to cities. The British textile industry was the first to introduce these changes.
The Second Industrial Revolution
The Second Industrial Revolution occurred around 1870. The capitalist system was already established, and industrial production diversified (chemical, electrical, automotive). Besides Great Britain, other countries (France, Japan, the United States, the Netherlands, Germany, and Italy) adopted the new methods of production. New inventions and machines helped increase the speed of industrialization, and these gave rise to new industrial and consumer products.
Integration of Industrial Companies
- Horizontal: This occurs when companies from the same sector unite to focus their activities on one stage of the production process, for example, an oil refinery.
- Vertical: Companies from the same sector unite to carry out different stages in the production process. For example, in the textile sector, companies involved in fabric production, clothes manufacture, and distribution may integrate to become more efficient.
Elements of the Industrial Process
- Raw materials: These are natural resources that are transformed by an industrial process into finished products.
- Energy sources: These are the forces obtained from nature to transform raw materials.
- Labor: This is the activity carried out by workers and professionals in exchange for a salary.
- Capital: To make industrial activity possible, businesses must invest in their production sites and in the manufacture and marketing of products.
- Technology: This is all the equipment and materials needed for production, as well as the knowledge needed to use them.
- The organization of the company: The company needs to be organized and managed well to obtain quality products at an affordable price.
The Tertiary Sector
- High-end: All activities associated with technology and science are commonly said to belong to the high-end tertiary or quaternary sector.
- Low-end: As opposed to the high-end tertiary sector, the low-end tertiary sector consists of jobs that require little training and are usually poorly paid. These include cleaners and street traders.
Types of Transport
- Road transport
- Rail transport
- Air transport
- Maritime transport