Secondary sector
The secondary sector transforms materials or components into products and includes manufacturing and construction in a common introductory classification. The classification concerns the nature of the activity, not its importance or place in an ownership hierarchy. It is distinct from support activities in value-chain analysis.
Worked example
A company turns timber into furniture. The manufacturing activity is secondary, even if the company also owns forestry operations and retail shops.
Common mistake
Interpreting secondary as less important or confusing it with activities that merely support a company’s main operations.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |