Categories of Industry

PRIMARY, SECONDARY & TERTIARY ACTIVITES

Types of Industry

What is industry?
Industry is made up of different firms that produce all the outputs
for a service or product.
Example: The construction industry is made up of all the producers of
products required and used in the building trade, such as builders.
The Categories of Industry

The Three categories of industry include:

1. Primary Industry (Agriculture, Forestry, Fishing &
Mining.)
2. Secondary Industry (Construction & Manufacturing
Industry.)
3. Tertiary Industry (Services Industry)
Primary Industry (Agriculture)

The Primary Industry is made up of Agriculture, Forestry, Fishing & Mining.

Agriculture is an important industry as it provides:
1. Numerous Products, e.g. milk, cheese & meat.
2. Employment: some 5.5% of Irelands workforce were employed in
agriculture in 2015.
3. Exports: In 2011, agri-food exports were 9.8% of Irelands total exports.
Agri-Business is the most important primary industry to Ireland due to its
major exporting and job providing.
Examples would include Glanbia PLC and Kerry Group PLC.
Primary Industry

Coillte was established in 1989 by the state to ensure proper commercial

policy for forestry.
The forestry industry in Ireland is now nearly exclusive to Coillte, although
some private companies have since availed of Ireland generous tax
incentives such as corporation tax @12.5%.
Ireland is the least forested EU member state, importing almost 3.9 million
worth of timber in 2011.
The Fishing industry has declined in recent years. Reducing unemployment
by more than 50%. This is mainly due to overfishing and EU regulations.
Some or Irelands leading ports include: Howth, Dingle & Killybegs.
Primary Industry (Importance)

Primary Industries are very important to Ireland due to:

1. Employment: In 2011, almost 150,000 people are employed directly in the
Primary workforce.
2. Government Revenue: Employees pay taxes on their wages and VAT to
purchase products, increasing the governments revenue substantially.
3. Balance of Trade and Payment: Exports are huge in this sector which has a
positive effect on both the balance of trade and payments. Produce
created through fishing and agriculture also reduced imports.
4. EU Support: Both the CAP (Common Agricultural Policy) & CFP (Common
Fisheries Policy) enable Irish businesses to receive EU supports to compete.
Secondary Industry

The secondary sector is made up of the Construction and Manufacturing

Industries.
The Construction industry is involved in the construction of schools, roads,
hospitals, factories, etc.
The raw materials used to create these projects are supplied by the
Primary Industry.
Construction industry generally is a good barometer of the state of the
economy. Currently it employs huge numbers with it to increase by a
further 20% according to new forecasts.
Current trends would suggest Higher employment, Increased competition
and increased wage levels.
Secondary Industry

Manufacturing industries create finished products needed and wanted by

consumers from raw materials.
The most common types of these firms would include areas related to food
processing, electronics and pharmaceuticals.
The importance of both these industries to Ireland would include:
1. Modernisation of Irelands infrastructure, e.g. new roads, schools.
2. Import Substitution.
3. Job creation.
4. Government Revenue.
Tertiary Industry

The Tertiary Industry is also known as the Services Industry.

The Services Industry employ most people in the economy.
Examples include:
1. Financial Services, e.g. Banks
2. Transport Services, e.g. Buses & Trains
3. Government Services, e.g. Education
4. Tourist Services, e.g. Hotels and B&Bs
5. Professional Services, e.g. Accountants
6. Medical Services, e.g. Doctors & Nurses
Tertiary Industry

The importance of the Tertiary Industry includes:

1. Employment: Almost 70% of Irelands workforce are employed within this
sector.
2. Government Revenue: Workers in this industry pay PAYE, PRSI, USC, VAT,
etc.
3. Improves our Balance of Trade and Payments: Tourism and exports, such
as financial services.