Secondary sector

This sector generally takes the output of the [[primary sector]] (i.e. [[raw material]]s like metals, wood) and creates [[finished goods]] suitable for sale to domestic [[business]]es or [[consumer]]s and for [[export]] (via distribution through the [[Tertiary sector of the economy|tertiary sector]]). Many of these industries consume large quantities of energy, require [[Factory|factories]] and use machinery; they are often classified as [[light industry|light]] or [[heavy industry|heavy]] based on such quantities. This also produces [[waste]] materials and [[waste heat]] that may cause environmental problems or [[pollution]] (see [[Externality|negative externalities]]). Examples include [[Textile industry|textile production]], [[Automotive industry|car manufacturing]], and [[handicraft]].{{Cite web |url=http://www.businessdictionary.com/definition/secondary-sector.html |title=What is secondary sector? Definition and meaning - BusinessDictionary.com |access-date=2020-07-14 |archive-date=2020-08-05 |archive-url=https://web.archive.org/web/20200805141751/http://www.businessdictionary.com/definition/secondary-sector.html |url-status=dead }}

This sector generally takes the output of the [[primary sector]] (i.e. [[raw material]]s like metals, wood) and creates [[finished goods]] suitable for sale to domestic [[business]]es or [[consumer]]s and for [[export]] (via distribution through the [[Tertiary sector of the economy|tertiary sector]]). Many of these industries consume large quantities of energy, require [[Factory|factories]] and use machinery; they are often classified as [[light industry|light]] or [[heavy industry|heavy]] based on such quantities. This also produces [[waste]] materials and [[waste heat]] that may cause environmental problems or [[pollution]] (see [[Externality|negative externalities]]). Examples include [[Textile industry|textile production]], [[Automotive industry|car manufacturing]], and [[handicraft]].{{Cite web |url=http://www.businessdictionary.com/definition/secondary-sector.html |title=What is secondary sector? Definition and meaning - BusinessDictionary.com |access-date=2020-07-14 |archive-date=2020-08-05 |archive-url=https://web.archive.org/web/20200805141751/http://www.businessdictionary.com/definition/secondary-sector.html |url-status=dead }}

Manufacturing is an important activity in promoting [[economic growth]] and [[Economic development|development]]. Nations that export manufactured products tend to generate higher marginal [[Gross domestic product|GDP]] growth, which supports higher [[income]]s and therefore marginal [[tax revenue]] needed to fund such government expenditures as [[health care]] and [[infrastructure]]. Among [[Developed country|developed countries]], it is an important source of well-paying jobs for the [[middle class]] (e.g., engineering) to facilitate greater [[social mobility]] for successive generations on the economy. Currently,{{When|date=January 2025}} an estimated 20% of the [[labor force]] in the United States is involved in the secondary industry.{{Cite web |url=https://www.marketing91.com/?s=Secondary+Industry%3A+Meaning%2C+Types%2C+Characteristics%2C+and+Examples |title=Secondary Industry: Meaning, Types, Characteristics, and Examples}}

Manufacturing is an important activity in promoting [[economic growth]] and [[Economic development|development]]. Nations that export manufactured products tend to generate higher marginal [[Gross domestic product|GDP]] growth, which supports higher [[income]]s and therefore marginal [[tax revenue]] needed to fund such government expenditures as [[health care]] and [[infrastructure]]. Among [[Developed country|developed countries]], it has historically been an important source of well-paying jobs for the [[middle class]] (e.g., engineering) to facilitate greater [[social mobility]] for successive generations.

As of 2026, the role of the secondary sector in providing mass employment has diminished in many advanced economies due to [[automation]], [[Industrial robot|robotics]], and the integration of [[artificial intelligence]] (AI). While industrial output remains a significant component of GDP, the labor-intensity of the sector has decreased. In the [[United States]], for example, employment in the secondary sector (encompassing manufacturing and construction) accounts for approximately 13% to 15% of the total labor force, down from significantly higher levels in the mid-20th century.{{Cite web |url=https://www.bls.gov/news.release/pdf/empsit.pdf |title=The Employment Situation - March 2026 |publisher=U.S. Bureau of Labor Statistics |access-date=2026-04-20}}{{Cite web |url=https://www.ilo.org/publications/flagship-reports/employment-and-social-trends-2026 |title=World Employment and Social Outlook: Trends 2026 |publisher=International Labour Organization |access-date=2026-04-20}} This shift toward [[Industry 4.0]] emphasizes highly skilled roles in system management and optimization over traditional manual labor.{{Cite web |url=https://www.jrautomation.com/blog/2026-key-trends-in-automation-shaping-the-future-of-manufacturing |title=2026 Key Trends in Automation Shaping the Future of Manufacturing |publisher=JR Automation |access-date=2026-04-20}}

The secondary sector depends on the primary sector for the raw materials necessary for production. Countries that primarily produce [[agriculture|agricultural]] and other raw materials. The value added through the transformation of raw materials into finished goods reliably generates greater [[profitability]], which underlies the faster growth of [[developed economies]].

The secondary sector depends on the primary sector for the raw materials necessary for production. The value added through the transformation of raw materials into finished goods reliably generates greater [[profitability]], which underlies the growth of many [[developed economies]].

{{Bar chart

{{Bar chart

| float = center

| float = center

| title = Largest economies by industrial output (Nominal USD, Trillions) as of 2025/2026:

| title = 20 largest countries by industrial output (PPP-adjusted, billion [[United States dollar|USD]]) according to the [[International Monetary Fund|IMF]] and [[The World Factbook|CIA World Factbook]], at peak level as of 2020:{{Citation needed|date=May 2021}}

| table_width = 70

| table_width = 70

| bar_width = 50

| bar_width = 50

| data_max = 12,000

| data_max = 5.0

| label_type = Economy

| label_type = Economy

| data_type = {{center|Industrial output}}

| data_type = {{center|Industrial output (Trillions USD)}}

| label1 = (01) '''{{CHN}}''' | data1 = 11,261

| label1 = (01) '''{{CHN}}''' | data1 = 4.66

| label2 = (—) '''''{{EU}}''''' | data2 = 5,729

| label2 = (02) '''{{USA}}''' | data2 = 2.50

| label3 = (02) '''{{USA}}''' | data3 = 4,093

| label3 = (03) '''{{JPN}}''' | data3 = 1.05

| label4 = (03) '''{{IND}}''' | data4 = 2,604

| label4 = (04) '''{{GER}}''' | data4 = 0.84

| label5 = (04) '''{{JPN}}''' | data5 = 1,719

| label5 = (05) '''{{IND}}''' | data5 = 0.46

| label6 = (05) '''{{IDN}}''' | data6 = 1,549

| label6 = (06) '''{{KOR}}''' | data6 = 0.41

| label7 = (06) '''{{RUS}}''' | data7 = 1,422

| label7 = (07) '''{{MEX}}''' | data7 = 0.36

| label8 = (07) '''{{GER}}''' | data8 = 1,364

| label8 = (08) '''{{ITA}}''' | data8 = 0.35

| label9 = (08) '''{{KOR}}''' | data9 = 912

| label9 = (09) '''{{FRA}}''' | data9 = 0.29

| label10 = (09) '''{{KSA}}''' | data10 = 840

| label10 = (10) '''{{BRA}}''' | data10 = 0.29

| label11 = (10) '''{{MEX}}''' | data11 = 835

| label11 = (11) '''{{GBR}}''' | data11 = 0.27

| label12 = (11) '''{{TUR}}''' | data12 = 763

| label12 = (12) '''{{IDN}}''' | data12 = 0.25

| caption = {{resize|88%|Leading nations by manufacturing and industrial output according to 2025/2026 economic estimates. Source: World Bank and IMF.}}{{Cite web |url=https://worldostats.com/country-stats/manufacturing-output-by-country/ |title=Top Manufacturing Countries in 2026 by Output (Ranked) |access-date=2026-04-20}}

| label13 = (12) '''{{BRA}}''' | data13 = 720

| label14 = {{nowrap|(13) '''{{GBR}}'''}} | data14 = 639

| label15 = (14) '''{{FRA}}''' | data15 = 597

| label16 = (15) '''{{ITA}}''' | data16 = 587

| label17 = (16) '''{{IRN}}''' | data17 = 578

| label18 = (17) '''{{CAN}}''' | data18 = 537

| label19 = (18) '''{{POL}}''' | data19 = 517

| label20 = (19) '''{{THA}}''' | data20 = 499

| label21 = (20) '''{{EGY}}''' | data21 = 490

| caption = {{resize|88%|The twenty largest countries by industrial output (in [[purchasing power parity|PPP]] terms) at peak level as of 2020, according to the [[International Monetary Fund|IMF]] and [[The World Factbook|CIA World Factbook]].}}{{Citation needed|date=May 2021}}

}}

}}