Chapter 17 Categories of industry © Edco 2012 It’s the Business

Chapter 17Categories of industry

© Edco 2012 It’s the Business

Categories of industry

Industry in Ireland can be classified under three headings:

Primary sector: Extractive industriesSecondary sector: Manufacturing and

construction industriesTertiary sector: Service industries


Primary (extractive) industryThe primary sector consists of natural resource based industries that extract wealth from the land. Those natural resources may be renewable or non-renewable. The major extractive industries include:Agriculture FishingForestry Mining


AgricultureAccounts for over 60% of land use and approx

5% of total employment. Provides valuable raw materials for agribusiness

industry and is a significant source of exports.Its importance has declined due to increased

mechanisation, competition from larger farms, demographic and lifestyle changes as well as the impact of the EU Common Agricultural Policy.

2010-2011 saw short-term improvement in employment, income and export levels.


FishingThe Irish fishing industry is relatively small.The Irish seafood industry employs 11,000 people

and contributes about €700 million annually to national income.

EU fishing industry is governed by the Common Fisheries Policy (CFP).

Some fish stocks are depleted due to overfishing.The CFP sets out very strict rules designed to

prevent overfishing and preserve fish stocks.Fishing is seen as a tough way to make a living.


Secondary industriesIndustries in this sector add value to the

raw materials from primary sector industries in order to make finished goods.

Adding value means processing the raw materials in a way that heightens their appeal to the consumer and increases their economic value.

Major secondary industries include:Manufacturing sectorConstruction industry


Manufacturing sectorIndigenous companies

Decline in traditional manufacturing due to low cost competition.

Increase in ‘high tech’ manufacturing (pharmaceuticals, electronics, ICT).

Large ‘agribusiness’ sector with strong exports.

Transnational companies

Employ 100,000+.Big emphasis on

high tech manufacturing.

Account for 70% of total exports from Ireland.


Construction industryProvides housing, commercial property and

infrastructure.A very labour-intensive industry, potential to

create large amounts of employment.This sector is susceptible to economic changes

and has suffered huge decline in recent years.2007 Employment: 300,000 Output = €40 billion.2011 Employment: 100,000 Output = €10 billion.


Tertiary (services) industryThe largest and fastest growing sector in the

Irish economy.Examples include: Financial services - Medical services - Transport

services - Leisure services.Most service industries are labour-intensive and

this has a very positive impact on job creation. Improvements in IT have also led to growth.Tourism is a significant service sector in Ireland.


Irish Indigenous IndustryMost indigenous firms are SMEs.Predominantly in agribusiness sector but

also involved in ICT, electronics and medical sciences.

Supported by Enterprise Ireland.Employ in excess of 300,000 people.Valuable source of exports.Loyal to the Irish economy.


Transnational companies in IrelandA transnational company (TNC) has business

operations in several countries at a time.Examples of TNC’s in Ireland include Coca

Cola, Microsoft, Intel, Pfeizer and Facebook. Predominantly in ‘high tech’ industries

including ICT, electronics, pharmaceuticals.Supported by IDA Ireland.Employ in excess of 100,000 people.Export vast majority of their output.More mobile than indigenous firms.


Foreign direct investmentIDA Ireland is the state agency responsible

for attracting foreign businesses to locate in Ireland.

Ireland is an attractive location for FDI due to:Low corporation taxGovernment grantsEU membership/market accessSkilled workforceCuster effect (presence of

other TNCs)© Edco 2012 It’s the Business

Documents

Chapter 17 Categories of industry © Edco 2012 It’s the Business