The collapse of the secondary Industry Objective: To be able to explain the reasons for the decline in the secondary sector in the UK Key Words: TNCs Industrialisation Deindustrialisation Automation Globalisation Recap Task : Why were there a collapse in the fishing and mining industry...

Bigger picture What will the future of industries be across the world?

What is the Secondary Sector...? What types of jobs are included in the secondary sector? Discuss with your partner the types of jobs found in the secondary sector. List them in your books.

The Decline of the UK’s Secondary Sector... Fifty years ago, manufacturing produced 40% of the UK’s economic wealth and employed a third of the workforce. Today it only produces 11% of the wealth and employs less than 10% of the workforce. Factories closed in the UK The things they were making can now be made more cheaply elsewhere....

Why? Cheaper land and labour in poorer parts of the world Fast and cheap transport to move goods from country to country Modern communication networks

Read book page 150 and 151 Outline changes in employment in the secondary sector in the UK during the last 50 years. What are the main factors for the decline in the secondary industry in the UK What is a TNC? What is meant by globalisation? The employment in the secondary industry in the UK has decline due to deindustrialisation – Give another reason for its decline What is the difference between decline in employment and decline in output? Why does automation lead to the decline of employment?

Reasons for the decline De-industrialisation in the UK due movement of manufacturing from HICs to MICs/LICs. This has been as a result of cheaper land and lower wages in less developed countries and due to fast and efficient methods of transporting goods. Improved communication networks through the global superhighway i.e. use of the internet and other methods of communication for businesses to keep in touch with suppliers. Withdrawal of UK government support that had kept factories open e.g. iron and steel works. Less people working in manufacturing due to automation (goods produced by machine instead of humans). UK still predicted to be in the top 10 manufacturing nations by 2020. New economy of high tech industries e.g. in research and design, business and tourism (tertiary and quaternary sector) now employ more people than manufacturing. Unfortunately the jobs are often in different locations e.g. south-east of the UK. Globalisation – Most countries are becoming tied into one huge global economy. Each country has its part to play – which might be as a supplier of raw materials or cheap labour or as a consumer market or location for the invention of new technologies. The growth of transnational corporations (TNCs) has also played a part. These are companies that operate on a global scale e.g. they set up a factory in China, assemble raw materials e.g. from Africa and Australia and then transport goods for sale to the major markets in Europe and North America.

Another question Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)

Explain what is meant by the “global shift in manufacturing”

Growth of TNCs They can set up a factory Have raw materials from a different country Transport the manufactured goods

Globalisation

Globalisation Watch the clip and write the name of all countries mentioned

Globalisation Reasons for globalisation Firms can keep in contact with producers easily and quickly using the internet. Developments in transport technology: goods can be moved around the world quickly and easily. Development of aircraft and containers, efficient motorway networks which cross Europe.

TNCs These companies are locating in the cheapest and therefore most profitable locations. Transport Now much faster and cheaper, therefore distance is no longer as significant as it used to be. Location factors Governments Incentives to set up factories within their borders such as tax exemption. Energy Due to the National Grid system, electricity can be made available almost anywhere. Communication because of speed and efficiency of modern communications, a manufacturing company can keep in immediate touch with factories scattered in different countries. Footloose Industries Their location is no longer tied down to nearness of raw materials and market.

Summary

Suggest reasons for the decline of secondary industry in the UK Suggest reasons for the decline of secondary industry in the UK. (4 marks) Answer this question in your books. 0-1 mark Identify one reason, in a undeveloped statement with no example . 2 marks Describe a number of reasons, But no examples or Added detail. 3-4 marks Give at least two reasons In detail, With examples, figures and data.

Another question Globalisation has caused a decline in secondary industry in the UK. Suggest reasons why. (4)

Decline of British Steel Reasons for the decline: Plants operating under capacity (low efficiency) Outdated technology Higher coal and oil costs Lack of funds for capital improvement, Increasing world market competition. By the 1970s the Labour government had its main goal to keep employment high in the declining industry. Since British Steel was a main employer in depressed regions, it had to keep many mills and facilities operating at a loss. In the 1980s, Conservative Prime Minister Margaret Thatcher privatised BSC (British Steel Company) as British Steel. Under private control the company has dramatically cut its work force and undergone a radical re-organisation and massive capital investment to again become competitive in the world marketplace. British Steel was privatised in 1988. It merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group on 6 October 1999. Corus itself was taken over in March 2007 by the Indian steel operator Tata Steel.

June 2011

Jan 2012

Next lesson… So where have the industries gone?