Big picture
Secondary activities add value to natural resources by transforming raw materials into more useful products: cotton into cloth, iron ore into steel, sugarcane into sugar. Manufacturing is the most important secondary activity, along with processing and construction. Workers in these activities are often called blue-collar workers.
This chapter explains the features of modern manufacturing, why industries are located where they are, how industries are classified, and the rise of high-technology industries.
Learning goals
Explain the meaning of manufacturing and value addition.
Explain the features of modern large-scale manufacturing.
Explain the factors affecting the location of industries.
Explain footloose industries and agglomeration economies.
Classify industries by size, raw material, product and ownership.
Explain high-technology industries and technopolises.
Core ideas
1. Manufacturing
Manufacturing literally means "making by hand", but today it covers goods made by machines in factories, as well as in homes.
It involves converting raw materials into finished goods of higher value. For example, a few kilograms of cotton become shirts worth much more: this is value addition.
2. Features of modern large-scale manufacturing
Feature | Meaning |
|---|---|
Specialisation of skills and methods of production | Each worker performs a specific task repeatedly; products are standardised and made in large quantities (mass production) |
Mechanisation | Machines do most of the work; automation goes further, with machines controlling other machines |
Technological innovation | Research and development improve quality, reduce waste and cut costs |
Organisational structure and stratification | Complex machine technology, extreme specialisation and division of labour, large capital, large organisations and an executive bureaucracy |
Uneven geographic distribution | Major concentrations of manufacturing are in a few regions, mainly in developed countries |
3. Factors affecting the location of industries
Industries try to locate where production costs are lowest and profits highest.
Factor | Explanation | Example |
|---|---|---|
Access to market | Large markets with high purchasing power attract industries | Industries cluster near big cities |
Access to raw material | Industries using heavy, bulky or perishable raw materials, or raw materials that lose weight in processing, locate near the source | Iron and steel plants near iron ore and coal; sugar mills near sugarcane fields; dairy plants near milk supplies |
Access to labour supply | Some industries need cheap or skilled labour | |
Access to sources of energy | Industries that use a lot of power locate near energy sources | Aluminium smelters near cheap hydroelectric power |
Access to transportation and communication | Speed and cost of moving raw materials and products matter | Industries along rail lines, ports and highways |
Government policy | Governments encourage industries in backward areas through incentives and restrict them in congested areas | |
Access to agglomeration economies | Industries benefit from being near other industries: shared services, suppliers, workers and infrastructure | Industrial clusters |
4. Footloose industries
Footloose industries can be located in a wide variety of places, because they aren't dependent on any specific raw material, whether weight-losing or not.
They depend largely on component parts obtained from anywhere, produce small quantities with a small labour force, and are generally non-polluting.
The key factor is accessibility by road. Examples: electronics, computer and diamond-cutting industries.
5. Classification of industries
By size:
Type | Features |
|---|---|
Household (cottage) industries | The smallest units; artisans use local raw materials and simple tools, with family members, at home. Products are often sold in local markets. Examples: pottery, handicrafts, basket-making |
Small-scale industries | Use local raw materials, simple power-driven machines and semi-skilled labour; provide employment |
Large-scale industries | Large markets, many raw materials, enormous energy, specialised workers, advanced technology, mass production and large capital |
By inputs (raw materials):
Type | Examples |
|---|---|
Agro-based | Food processing, sugar, pickles, fruit juices, beverages, spices, oils, cotton textiles, rubber, leather |
Mineral-based | Ferrous (containing iron): iron and steel; non-ferrous: aluminium, copper, jewellery |
Chemical-based | Petrochemicals, plastics, synthetic fibres, fertilisers, medicines |
Forest-based | Paper, furniture, lac, tanning |
Animal-based | Leather, wool, ivory |
By output (product):
Basic (capital goods) industries make products used to make other goods: for example, steel used to make machinery.
Consumer goods industries make products used directly by consumers: biscuits, soap, televisions, clothes.
By ownership:
Public sector: owned and managed by government.
Private sector: owned by individuals or companies.
Joint sector: jointly run by the public and private sectors.
6. Traditional large-scale industrial regions
These are regions dominated by heavy industry, often near coalfields, engaged in metal smelting, heavy engineering, chemical manufacture or textiles. They often have high employment in manufacturing, and problems such as old factories, pollution and unemployment when industries decline.
Examples: the Ruhr region of Germany (coal and steel), the north-eastern USA, and parts of England.
7. High-technology industries
High-tech industry is the latest generation of manufacturing, involving the intensive application of scientific and engineering research and development (R&D).
A large share of workers are professional (white-collar) workers: scientists, engineers and technicians. Production is highly automated, and workplaces are neat, modern, low and spread out.
High-tech industries cluster in technopolises: planned business parks and regions that bring together research institutions, companies and skilled labour. Examples: Silicon Valley near San Francisco, and India's Bengaluru.
A reliable approach to questions
Explain manufacturing as value addition.
List the features of modern manufacturing.
For location, match each factor to an industry example.
Define footloose industries with examples.
Classify industries by size, raw material, product and ownership.
Describe high-tech industries and technopolises.
Connections that matter
Primary activities supply raw materials for manufacturing.
Tertiary activities provide transport, trade and services for industries.
India: mineral and energy resources explains the resources Indian industries use.
Common mistakes
Saying footloose industries depend on one raw material. They don't.
Classifying aluminium as a ferrous industry. It is non-ferrous.
Confusing basic industries (capital goods) with consumer goods industries.
Saying weight-losing raw materials attract industries to markets. They attract industries to the raw material source.
Revision checklist
I can explain manufacturing and its features.
I can explain each factor affecting industrial location.
I can define footloose industries and agglomeration economies.
I can classify industries in four ways.
I can describe traditional industrial regions and high-tech industries.