Secondary sector is the economic sector, which involves the transformation of raw materials into finished goods. This sector consists of two main sub-sectors, namely manufacturing and construction.
Manufacturers obtain raw materials from the primary sector. They then process it and sell it to customers. Their output goes to distributors or retailers. Examples are producers of food, beverages, electronics, cars, and clothing.
Some manufacturers also produce semi-finished goods and go into other manufacturers for further processing into finished products. An example is steel producers. They process bauxite into aluminum and sell it to various companies, including car manufacturers, aircraft manufacturers, and electronics manufacturers.
The contribution of added value from this sector to the economy is quite significant, especially in industrialized countries. This sector also creates a lot of jobs. As the tertiary and quaternary sectors develop, the contribution of the secondary sector will gradually diminish, as has happened in developed countries such as the United States and Japan.
