The Importance of Growing Industry

Group of productive organizations that produce or supply goods, services, or sources of income. In economics, industries are customarily classified as primary, secondary, and tertiary; secondary industries are further classified as heavy and light.

Industry

Primary industry includes agriculture, forestry, fishing, mining, quarrying, and extracting minerals.

Primary Industry

Secondary or manufacturing industry processes the raw materials supplied by primary industries into consumer goods, or further processes goods from other secondary industries, or builds capital goods used to manufacture consumer and non consumer goods.

Secondary Industry

Tertiary or service industry includes banking, finance, insurance, investment, and real estate services; wholesale, retail, and resale trade; transportation, information, and communications services; professional, consulting, legal, and personal services; tourism, hotels, restaurants, and entertainment; repair and maintenance services; education and teaching; and health, social welfare, administrative, police, security, and defense services.

Tertiary Industry

Philippine Industry

Primary Industry

Rice is the most important food crop, a staple food in most of the country. It is produced extensively in Luzon, the Western Visayas, Southern Mindanao, and Central Mindanao. In 1989 nearly 9.5 billion tons of palay were produced.In 1990 palay accounted for 27 percent of value added in agriculture and 3.5 percent of GNP. Per hectare yields have generally been low in comparison with other Asian countries. Since the mid-1960s, however, yields have increased substantially as a result of the cultivation of high-yielding varieties developed in the mid-1960s at the International Rice Research Institute located in the Philippines.

Rice

The Philippines is the world's second largest producer of coconut products, after Indonesia. In 1989 it produced 11.8 million tons. In 1989, coconut products, coconut oil, copra (dried coconut), and desiccated coconut accounted for approximately 6.7 percent of Philippine exports. About 25 percent of cultivated land was planted in coconut trees, and it is estimated that between 25 percent and 33 percent of the population was at least partly dependent on coconuts for their livelihood. Historically, the Southern Tagalog and Bicol regions of Luzon and the Eastern Visayas were the centers of coconut production. In the 1980s, Western Mindanao and Southern Mindanao also became important coconut-growing regions.

Coconut

From the mid-nineteenth century to the mid-1970s, sugar was the most important agricultural export of the Philippines, not only because of the foreign exchange earned, but also because sugar was the basis for the accumulation of wealth of a significant segment of the Filipino elite. The principal sugarcane-growing region is the Western Visayas, particularly the island of Negros. In 1980 the region accounted for half the area planted in cane and two-thirds of the production of sugar. Unlike the cultivation of rice, corn, and coconuts, sugarcane is typically grown on large farms or haciendas.

Sugar

Region Palay Corn CoconutCAR 31,4 295 93,552 876

1 1,227,22 7 1 82,666 20,4832 1,810,196 907,177 44,4913 2,100,893 907,177 5,0204 1,214,913 101,588 1,9 32,7455 697,287 62,842 1,232,6146 1,589,531 75,540 432,9977 225,192 154,011 318,1698 565,895 47,525 1,557,3699 435,218 137,320 1,292,70210 323,272 532,765 973,59111 694,131 596,27 4 3,197,05412 980,034 737,142 536,543

CARAGA 336,365 67,7 47 726,520ARMM 440,421 715,334 936,684

In 1990 the livestock industry, consisting primarily of cattle, carabao (water buffalo), hogs, and chickens, accounted for almost 20 percent of value added in the agricultural sector, up from 12 percent in 1980. Much of the growth came from the rapid expansion of poultry raising, which had begun to develop as a commercial industry in the 1960s. Chicken raising accounted for half of livestock value added in 1990 as compared with a quarter in 1970. Beginning in the late 1980s, commercial hog raisers also attempted to enter the international market by exporting live hogs to Hong Kong. Although carabao production increased as a result of an intensified livestock dispersal program run by the government, the carabao and cattle industries remained primarily backyard ventures.

Livestock

In the early 1990s, the Philippines had large deposits of copper, chromium, gold, and nickel, plus smaller deposits of cadmium, iron, lead, manganese, mercury, molybdenum, and silver. Industrial minerals included asbestos, gypsum, limestone, marble, phosphate, salt, and sulfur. Mineral fuels included coal and petroleum.

Mining

MetallicPrecious Metal Copper

Gold Concentrate

Silver Metal

Base Metals Iron Ore

Chromite Manganese

Chemicals Grade Nickel

Metallurgical Concentrate Benificiated Ore

Refractory Ore Metal

Cobalt Metal

Mineral Production

Non MetallicCoal

Salt

Silica Sand

Sand and Gravel

Cement Raw Materials

Limestone

Shale Clay

Silica Sand

Gypsum

Secondary Industry

By the late 1980s, and in part the consequence of local content laws that were intended to enhance linkage among various manufacturing industries and increase self-sufficiency, the industrial structure had become more complex, with intermediate and capital goods industries relatively large for a country at the Philippines' stage of development. By the mid-1980s, an ambitious US$6 billion industrial development program originally undertaken by the Marcos regime in 1979 had resulted in operational copper smelter-refinery, cocochemical manufacturing, and phosphatic fertilizer projects. A cement-industry rehabilitation and expansion program and an integrated iron and steel mill project were still underway. A petrochemical complex appeared about to be undertaken in 1990, but was bogged down in a dispute over location and financing.

Manufacturing

Manufacturing Industries

Major Industry Group

No. of Establishment

s

Major Industry Group

No. of Establishment

s

Beverages 129 Printing and Publishing

988

Cement 20 Iron and Steel 447Electrical Machinery Apparatus

---- Leather & leather products

595

Appliances and Supply

446 Machinery 861

Fabricated Metal Products

957 Metal Casting 58

Food Products 3,919 Petroleum 5Furniture and

Fixtures689 Paper& Paper

Products335

Glass and Glass Products

66 Plastic Products 490

Major Industry Group No. of Establishments

Recorded Media ----

Rubber Products 136

Textiles 586

Tobacco 21

Transport Equipment 364

Wearing Apparel 2,025

The following are the top ten industries of the Philippines, according to the number of establishments:

1. Ready made garments2. Manufacture of plastic products3. Production, processing and preservation of meat, fish and

other seafood, fruits, vegetables, oils4. Manufacture of bakery products5. Printing and printing-related services6. Manufacture and repair of furniture7. Manufacture of nonmetallic mineral products8. Manufacture of basic iron and steel 9. Manufacture of chemical products 10. Manufacture of pulp, paper and paper board

Tertiary Industry

Tourism developed rapidly in the 1970s, with visitors numbering 1 million in 1980. Thereafter, the industry went into a slump, reaching the 1 million visitor mark again only in 1988. In that year, the average length of stay was 12.6 days, up from 8.9 days in 1987. Many of the visitors, however, were emigrant Filipinos returning for periodic visits with families and friends. In 1988 an average of 73 percent of Manila's 8,500 hotel rooms were occupied.

Tourism

Transportation

Cars 729, 350

Utility vehicles 1,489,266

Trucks 253,596

Buses 31,686

Motorcycles 1,338,263

Trailers 23,701

399,806 10  Spain 392,363

List of countries by Industrial output

Rank Country Output in millions of US$

—  European Union 4,144,7091  United States 3,122,1242  China 2,297,4043  Japan 1,109,9054  Germany 898,5355  Italy 529,5666  United Kingdom 519,6987  France 516,4598  Russia 427,7719  Brazil 399,80610  Spain 392,363

A disparity between the standards of living applying within a nation. It is difficult to quantify the prosperity or poverty of a region, but there are two basic indicators. The first is unemployment, which has been used in Britain as a symptom since the 1920s. Most UK regional policy has concerned the alleviation of unemployment. The second indicator is per capita income, which in Britain generally falls to the north and west. Other factors indicating disparity include the type of industry and its growth or decline, numbers of young people in further education, housing standards, and the quality of the environment. Some would assert that economic development brings about regional inequality.

Regional Disparities