Secondary Economic Activities (Leaving Cert Geography): Revision Notes
Secondary Economic Activities
The Paris Basin has developed into one of Europe's most important manufacturing regions, with numerous industries operated primarily by multinational companies (MNCs). This industrial success stems from several key advantages that make the region highly attractive for secondary economic activities.
Key advantages attracting industry to the Paris Basin
Manufacturing activities have flourished in the Paris Basin due to five main locational advantages that create an ideal environment for industrial development:
- Strong agricultural foundation providing raw materials for food processing
- Large skilled workforce with excellent educational opportunities
- Outstanding transport infrastructure connecting the region globally
- Massive consumer market supporting high-value production
- Abundant raw material supply from local and imported sources
The region has also undergone significant decentralisation since the 1950s, spreading industrial development beyond the central Paris area to create a more balanced economic landscape.
Strong agricultural sector
The intensive and highly productive farmland surrounding the Paris Basin creates excellent conditions for food processing industries. This agricultural foundation supplies abundant fruits, vegetables and grains that support major manufacturing operations.
Food processing represents a crucial industrial sector, with dairy production being particularly significant in the region.
Dairy industry dominance
France's dairy sector demonstrates remarkable global competitiveness, with five French dairy companies achieving positions in the top 25 worldwide rankings:
- Lactalis (ranked 1st globally)
- Danone (4th position)
- Sodiaal (17th position)
- Bongrain (18th position)
- Bel (24th position)
The dairy industry extends beyond food production, as milk proteins serve as important inputs for chemical and pharmaceutical manufacturing. France's position as the world's largest consumer of milk and cheese creates substantial domestic demand, whilst 67% of dairy products are exported to EU markets.
Agricultural products also support other food industries, with cereals from the region transported to Paris for manufacturing pastries, chocolate and bakery products. The famous Parisian boulangeries represent an important part of this food processing sector.
Availability of labour force and education opportunities
The Greater Paris Area's population exceeds 11 million people, with over 22 million living in the broader Paris Basin region. This creates an enormous labour pool for manufacturing industries.
The region's educational infrastructure strongly supports industrial development through 17 universities that attract high-tech industries. These institutions enable companies to invest in research and development whilst providing access to highly qualified graduates.
Research and development excellence
An impressive 85% of France's total research and development activities occur within the Paris Basin region. This concentration of innovation creates technological parks and industrial estates designed specifically for developing new products. As a result, many manufacturing companies establish their headquarters in the Paris Basin, making it the centre of decision-making for the entire country.
Company Example: PSA Peugeot Citroën
PSA Peugeot Citroën, France's largest car manufacturer, exemplifies this trend with its main headquarters located in the Paris Basin. The company employs 83,930 people and operates 4 research and development centres with 14,500 researchers, generating 2.8 million sales annually.
Well-developed communications
The Paris Basin benefits from exceptional transport infrastructure including efficient road, rail, port, airport and broadband networks that facilitate industrial operations.
Port facilities
Le Havre, the region's deep-water port, enables ships to access the region directly from the English Channel. Modern docking facilities and warehouses along the river specifically support heavy industries including steel production, oil refining, petrochemicals and textiles.
Docking facilities are specialised installations that allow for efficient loading and unloading of ships, essential for industrial supply chains.
Transportation advantages
The region's flat relief allows easy construction of communication links without requiring expensive mountain tunnels. Straight roads connect directly to Paris, establishing the capital as a nodal point for communications and enabling efficient product distribution throughout the region.
Railway excellence
The Paris Basin operates one of the world's best rail networks. The Train à Grande Vitesse (TGV) high-speed rail service connects to major French urban centres and extends into neighbouring countries including Switzerland and Germany. The Eurostar high-speed rail link provides direct access to the UK, making EU markets easily accessible for both passengers and freight.
Freight trains achieve speeds of 270 km/h and utilise innovative 'swap bodies' technology since 2015. This system allows carriage containers to be lifted directly from trains and placed onto lorries, making goods transportation fast and efficient.
Swap bodies are standardised containers that can be transferred between trains and lorries using cranes, enabling seamless multimodal transport.
Charles de Gaulle and Orly airports facilitate import and export of lightweight materials, whilst the Metro underground system enables workers to travel quickly around the city.
Large market
With over 22 million people living in the Paris Basin, there exists constant demand for local products. The region's high living standards create a wealthy market that can afford luxury goods, leading to development of niche markets for high-end products.
Luxury goods concentration
Companies such as Chanel (clothing and perfume) and Cartier (jewellery) have established operations to serve this affluent market. Paris has achieved world-famous status for designer goods, with many designer brands locating around the city.
Cosmetic Valley, situated less than 100 km from Paris in the Chartres area, hosts world-famous brands including L'Oréal and Guerlain, demonstrating the region's specialisation in luxury consumer products.
Raw materials
The Paris Basin possesses rich natural resources supplemented by imports from France's former colonies. Local deposits include iron ore used in steel and engineering sectors, whilst Cameroon supplies timber to support various industries.
Energy infrastructure
Although the region has limited fossil fuel deposits, extensive pipeline networks transport natural gas from the Pyrenees in southern France to the Paris Basin. Additional pipelines connect Le Havre and Marseille to oil fields in the Netherlands, creating infrastructure that supports important textile and petrochemical industries.
Decentralisation of industry
Government policy evolution
Paris experienced rapid growth from 1800 onwards, but by 1950, the government initiated decentralisation policies to address urban concentration. Industries were encouraged to relocate from the Greater Paris Region to other urban areas throughout the Paris Basin.
In 1963, the Agency for Spatial Planning and Regional Attractiveness (DATAR) was established to develop infrastructure and provide incentives to convince industries to relocate from Paris to elsewhere in the region.
Decentralisation impacts
This policy has significantly strengthened the economy of other Paris Basin areas whilst reducing urban sprawl in Paris. Since the 1970s, industrial decline has occurred in central Paris due to high land costs, expensive labour and traffic congestion, encouraging companies to relocate to peripheral areas.
The number of manufacturing employees halved between 1975 and 2005, though the region remains prosperous with increased unemployment. In 2013, the Paris Basin recorded 3.32 million unemployed and 1.6 million part-time workers.
Case study: Cosmetic Valley
Cosmetic Valley represents a specialised area of France focused on cosmetics and perfume production. Founded in 1994, it has evolved into a technopole - a centre of high-tech manufacturing spanning seven departments in Île-de-France and Normandy.
A technopole is a specialised centre of high-technology manufacturing that concentrates research, development and production activities.
Major companies and employment
Leading cosmetic companies operating in Cosmetic Valley include L'Oréal, Guerlain, Jean Paul Gaultier, Dior and Maybelline. The area maintains high levels of research and development alongside education programmes specialising in innovations and new products.
Employment diversity
Cosmetic Valley creates extensive employment across various sectors:
- Growing aromatic plants for raw materials
- Creating and formulating products in laboratories
- Manufacturing perfumes and cosmetics in production facilities
- Control testing and analysis in quality laboratories
- Advertising, design and packaging for marketing
Economic significance
The region hosts 800 companies employing over 70,000 people. To maintain a steady supply of high-quality graduates, companies fund and sponsor PhD programmes. The area supports seven universities, 136 colleges and 200 public research centres guaranteeing a skilled workforce.
Over 8,600 researchers work in Cosmetic Valley, conducting more than 100 research projects with an annual budget of €200 million. This substantial investment has established the area as one of France's most important manufacturing centres, generating over €11 billion in revenue annually.
Key Points to Remember:
-
Five key advantages attract industry to the Paris Basin: strong agriculture, skilled workforce, excellent communications, large market, and abundant raw materials
-
France dominates global dairy with 5 companies in the world's top 25, supported by being the world's largest milk and cheese consumer
-
85% of French research and development occurs in the Paris Basin, making it the country's innovation centre
-
Decentralisation policies since 1950 have spread industry beyond Paris, managed by DATAR to reduce urban concentration
-
Cosmetic Valley demonstrates successful technopole development with 800 companies, 70,000+ employees, and €11 billion annual revenue from high-tech cosmetics manufacturing