INDUSTRY
Distribution
Textiles, diamonds and comestibles constituted Israel's industrial base
during the 1950s. In the following decades, the chemicals, metallurgical
and electronics industries developed, causing a six-fold increase in
industrial production. Exports in particular have increased: they
account for more than half of Israel's industrial output. Industry
continues to grow in Israel at a faster rate than any other sector
(Figures 18 and 19).
In its early stages, Israeli industry was concentrated near the major
urban centers of Tel Aviv and Haifa. When development towns were built
to accommodate the waves of immigrants that arrived in the 1950s and
60s, industry became an integral part of this demographic phenomenon.
For example, mineral mining and processing in the south especially in
the Dead Sea area were developed around the burgeoning pool of
immigrant employees. Later, as agriculture became more heavily
mechanized and agricultural workers became available for industrial
employment, some industries moved into rural areas. Whereas almost all
kibbutzim (collective settlements) were originally agricultural, today
23.5% of kibbutz members work in industry (26.7% remain tied to
agricultural jobs). Nevertheless, Israeli industry remains heavily
concentrated in metropolitan areas along the coastal plain. The
difficulty of attracting industry to peripheral areas is the major
factor in preventing the success of Israel's population distribution
schemes. Israel will feel this failure more acutely as new Eastern
European immigrants crowd into the metropolitan centers on the coast.
Trends
Industry in Israel is expected to grow more than any other sector in the
coming decades. Some forecasts predict that growth in industrial output
could grow by a factor of seven by the year 2025, including a jump from
15.6% (in 1985) to 30.6% for chemicals, rubber and fuel, and an increase
from 35.7% to 49.4% in metals and electronics output shares. Although
growth in the phosphate industry is also expected, enriched raw material
will account for a smaller proportion of output, and may actually
decrease. Potash and bromine production are expected to increase as
well, and growth is anticipated in raw materials output for construction
and road building.
The expected growth in Israeli industry presents an increased challenge
to the environment. But the past fifteen years demonstrate a promising
trend toward greater environmental awareness in the industrial sector:
environmental considerations are integrated into plans for industrial
projects, and environmental standards are enforced with increasing
regularity.