Raw Materials, Energy, and Global Industry Overview
Secondary Sector: Raw Materials and Processing
Activities based on the extraction and processing of raw materials into other products are traditionally grouped in the secondary sector: mining, energy production, industry, and construction.
Animal Raw Materials
These materials, such as wool or leather, are used in the textile industry to make clothes. Besides, fish can be used to elaborate canned food, oil, and flours (food industry).
Vegetable Raw Materials
Agricultural products such as cotton are used to make synthetic fabric.
Mineral Raw Materials
They usually need to be treated in order to be used in different industries.
Examples of Mineral Raw Materials:
- Bauxite (metallic minerals): We obtain aluminum.
- Platinum (metallic minerals): Used in jewelry.
- Slate (non-metallic): Used in construction.
- Marble (non-metallic): Used in construction.
- Coal (energy minerals): Used to produce energy.
- Uranium (energy minerals): Used for nuclear energy.
Energy Sources and Industry
Energy sources are natural resources from which it’s possible to obtain any kind of energy necessary to keep industries and transport working, as well as for household use. Energy sources can be renewable (non-limited and non-polluting) and non-renewable (limited and polluting).
Industry can be defined as the sector of an economy made up of manufacturing enterprises which transform raw materials into producer and consumer goods.
Types of Industry:
- Producer Goods Industries: Produce semi-finished products used as raw materials for other industries. Examples: steel and cement industries (heavy industry).
- Consumer Goods Industries: Produce products that are aimed directly at consumers, such as footwear industries.
- High-Tech Industries: (In rich, developed industries) They use the most advanced technologies such as microelectronics or biological engineering. They require highly trained and specialized workers.
Types of Industrial Concentration:
- Horizontal Merger: Union of several companies in the same sector. Example: the joint venture operating the petrol.
- Vertical Merger: Union of companies that produce different goods for one specific finished product (they are involved in the different stages of the manufacture).
Industrial Process and Location Factors
Elements to make up the industrial process: raw materials, energy sources, workforce, capital, technology, and business organization.
Traditional Factors Affecting Industrial Location:
Proximity to raw materials and energy source; proximity to market centers and consumption; proximity to ports and transport routes.
Proximity to raw materials: since transportation was still slow and heavy, industries were located near raw material sources to reduce transport costs.
Current Factors Affecting Industrial Location:
Abundant cheap labor, a good supply of highly-skilled workers, good communications, presence of a global market.
Highly-skilled workers and cutting-edge technology require very skilled labor. A good example is the location of multiple modern IT companies in Silicon Valley.
Main Companies by Region
Canada and USA:
- Wal-Mart Stores, Inc.: The largest industry in the world.
- Auto Service Exxon Mobile: Oil industry, gas natural.
- AT&T: Telecommunication industry, it’s the important industry in USA and one of the most important industries in the world.
- Vlc: Construction → AEA technology pic, stolt of shore. Energy water → acured, biogenerator, niger international water Ltd.
China and Japan:
- Communication → Kedansha, Ltd.
- Tyres → Bridgestone.
- Construction → Daiwa House Industry.
Korea:
- Technology → LG
- Transport → Korean Air
- Telecommunication → ITC Corporation
Germany:
- Transport: Volkswagen
- Clothes: Adidas
The most important areas are North America; the most important areas of North America are USA and Canada. USA and Canada are one of the most important industrial regions of the world, labor is cheap and highly qualified.