View source for Secondary sector

{{Short description|Manufacturing and construction industries}}
{{Multiple issues|
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{{Update|reason=The role of the secondary sector in promoting economic growth and development has diminished in the last decades, as a result of automatization. Very few people work in manufacturing if compared with half a century or a century ago.|date=April 2025}}
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{{Economic sectors}}

In [[economics]], the '''secondary sector''' is the [[economic sector]] which comprises [[manufacturing]], encompassing [[Industry (economics)|industries]] that [[Production (economics)|produce]] a finished, usable [[Product (business)|product]] or are involved in [[construction]].

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]].<ref>{{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 }}</ref>

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.<ref>{{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}}</ref><ref>{{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}}</ref> This shift toward [[Industry 4.0]] emphasizes highly skilled roles in system management and optimization over traditional manual labor.<ref>{{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}}</ref>

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
| float       = center
| title       = Largest economies by industrial output (Nominal USD, Trillions) as of 2025/2026:
| table_width = 70
| bar_width   = 50
| data_max    = 5.0
| label_type  = Economy
| data_type   = {{center|Industrial output (Trillions USD)}}
| label1      = (01) '''{{CHN}}''' | data1 = 4.66
| label2      = (02) '''{{USA}}''' | data2 = 2.50
| label3      = (03) '''{{JPN}}''' | data3 = 1.05
| label4      = (04) '''{{GER}}''' | data4 = 0.84
| label5      = (05) '''{{IND}}''' | data5 = 0.46
| label6      = (06) '''{{KOR}}''' | data6 = 0.41
| label7      = (07) '''{{MEX}}''' | data7 = 0.36
| label8      = (08) '''{{ITA}}''' | data8 = 0.35
| label9      = (09) '''{{FRA}}''' | data9 = 0.29
| label10     = (10) '''{{BRA}}''' | data10 = 0.29
| label11     = (11) '''{{GBR}}''' | data11 = 0.27
| 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.}}<ref>{{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}}</ref>
}}

== See also ==
*[[List of countries by manufacturing output]]
== References ==
{{Reflist}}

{{Industries}}
{{Authority control}}

[[Category:Secondary sector| ]]
[[Category:Economic sectors|+2]]
[[Category:Private sector|+2]]