All economic activities namely
primary, secondary, tertiary and
quaternary, revolve around obtaining and utilising resources
necessary for survival.
Secondary activities add value to natural resources by
transforming raw materials into valuable products.
Secondary activities, therefore, are concerned with
manufacturing, processing and construction (infrastructure)
industries.
MANUFACTURING
Manufacturing involves a full array of production from handicrafts
to moulding iron and steel and stamping out plastic toys to
assembling delicate computer components or space vehicles.
Characteristics of Modern Large Scale Manufacturing
Modern large scale manufacturing has the following
characteristics:
Specialisation of Skills/Methods of Production
Under the ‘craft’ method factories produce only a few pieces
which are made-to-order. So the costs are high.
On the other hand, mass production involves production of large
quantities of standardised parts by each worker performing only
one task repeatedly.
a. Mechanisation
b. Technological Innovation
c. Organisational Structure and Stratification
Modern manufacturing is characterised by:
quaternary, revolve around obtaining and utilising resources
necessary for survival.
Secondary activities add value to natural resources by
transforming raw materials into valuable products.
Secondary activities, therefore, are concerned with
manufacturing, processing and construction (infrastructure)
industries.
MANUFACTURING
Manufacturing involves a full array of production from handicrafts
to moulding iron and steel and stamping out plastic toys to
assembling delicate computer components or space vehicles.
Characteristics of Modern Large Scale Manufacturing
Modern large scale manufacturing has the following
characteristics:
Specialisation of Skills/Methods of Production
Under the ‘craft’ method factories produce only a few pieces
which are made-to-order. So the costs are high.
On the other hand, mass production involves production of large
quantities of standardised parts by each worker performing only
one task repeatedly.
a. Mechanisation
b. Technological Innovation
c. Organisational Structure and Stratification
Modern manufacturing is characterised by:
(i) a complex machine technology
(ii) extreme specialisation and division of labour for producing
more goods with less effort, and low costs
(iii) vast capital
(iv) large organisations
(v) executive bureaucracy.
d. Uneven Geographic Distribution
Major concentrations of modern manufacturing have flourished in
a few number of places.
These cover less than 10 per cent of the world’s land area.
These nations have become the centres of economic and
political power. However, in terms of the total area covered,
manufacturing sites are much less conspicuous and concentrated
on much smaller areas than that of agriculture due to greater
intensity of processes.
Classification of Manufacturing Industries
Manufacturing industries are classified on the basis of their size,
inputs/raw materials, output/products and ownership.
Industries based on Size
The amount of capital invested, number of workers employed and
volume of production determine the size of industry. Accordingly,
industries may be classified into household or cottage, small-scale
and large-scale.
HOUSEHOLD INDUSTRIES OR COTTAGE MANUFACTURING
It is the smallest manufacturing unit.
The craftsmen or artisans use local raw materials and simple hand
tools to produce everyday goods in their homes with the help of
their family members or part-time labour.
Finished products may be for consumption in the same household
or, for sale in local (village) markets, or, for barter.
Capital and transportation do not wield much influence as this
type of manufacturing has low commercial significance and most
of the tools are devised locally
(ii) extreme specialisation and division of labour for producing
more goods with less effort, and low costs
(iii) vast capital
(iv) large organisations
(v) executive bureaucracy.
d. Uneven Geographic Distribution
Major concentrations of modern manufacturing have flourished in
a few number of places.
These cover less than 10 per cent of the world’s land area.
These nations have become the centres of economic and
political power. However, in terms of the total area covered,
manufacturing sites are much less conspicuous and concentrated
on much smaller areas than that of agriculture due to greater
intensity of processes.
Classification of Manufacturing Industries
Manufacturing industries are classified on the basis of their size,
inputs/raw materials, output/products and ownership.
Industries based on Size
The amount of capital invested, number of workers employed and
volume of production determine the size of industry. Accordingly,
industries may be classified into household or cottage, small-scale
and large-scale.
HOUSEHOLD INDUSTRIES OR COTTAGE MANUFACTURING
It is the smallest manufacturing unit.
The craftsmen or artisans use local raw materials and simple hand
tools to produce everyday goods in their homes with the help of
their family members or part-time labour.
Finished products may be for consumption in the same household
or, for sale in local (village) markets, or, for barter.
Capital and transportation do not wield much influence as this
type of manufacturing has low commercial significance and most
of the tools are devised locally
Some common everyday products produced in this sector of
manufacturing include foodstuffs, fabrics, mats, containers,
tools, furniture, shoes, and figurines from wood lot and forest,
shoes, thongs and other articles from leather; pottery and bricks
from clays and stones.
Goldsmiths make jewellery of gold, silver and bronze.
Some artefacts and crafts are made out of bamboo, wood
obtained locally from the forests.
Small Scale Manufacturing
Small scale manufacturing is distinguished from household
industries by its production techniques and place of manufacture
(a workshop outside the home/cottage of the producer).
This type of manufacturing uses local raw material, simple power
driven machines and semi-skilled labour.
It provides employment and raises local purchasing power.
Therefore, countries like India, China, Indonesia and Brazil, etc.
have developed labour-intensive small scale manufacturing in
order to provide employment to their population.
Large Scale Manufacturing
Large scale manufacturing involves a large market, various raw
materials, enormous energy, specialised workers, advanced
technology, assembly-line mass production and large capital.
On the basis of the system of large scale manufacturing, the
world’s major industrial regions may be grouped under two broad
types, namely
(i) traditional large-scale industrial regions which are thickly
clustered in a few more developed countries.
(ii) high-technology large scale industrial regions which have
diffused to less developed countries.
Industries based on Inputs/Raw Materials
On the basis of the raw materials used, the industries are classified
as: (a) agro-based; (b) mineral based; (c) chemical based; (d)
forest based: and (e) animal based.
Industries Based On Output/Product
The raw material for making iron and steel requires machines and
tools made of iron and steel. Which is itself an industry.
The consumer goods industries produced goods which are
consumed by consumers directly. For example, industries
producing breads and biscuits, tea, soaps and toiletries,
paper for writing, televisions, etc. are consumer goods or non
basic industries.
INDUSTRIES BASED ON OWNERSHIP
(a) Public Sector Industries are owned and managed by
governments. In India, there were a number of Public Sector
Undertakings (PSUs).
Socialist countries have many state owned industries.
Mixed economies have both Public and Private sector enterprises.
(b) Private Sector Industries are owned by individual investors.
These are managed by private organisations. In capitalist
countries, industries are generally owned privately.
(c) Joint Sector Industries are managed by joint stock companies
or sometimes the private and public sectors together establish
and manage the industries.
Traditional Large-Scale Industrial Regions
These are based on heavy industry, often located near coal-fields
and engaged in metal smelting, heavy engineering, chemical
manufacture or textile production.
These industries are now known as smokestack industries.
Traditional industrial regions can be recognised by:
• High proportion of employment in manufacturing industry.
High-density housing, often of inferior type, and poor services.
Unattractive environment, for example, pollution, waste heaps,
and so on.
• Problems of unemployment, emigration and derelict land areas
caused by closure of factories because of a worldwide fall in
The raw material for making iron and steel requires machines and
tools made of iron and steel. Which is itself an industry.
The consumer goods industries produced goods which are
consumed by consumers directly. For example, industries
producing breads and biscuits, tea, soaps and toiletries,
paper for writing, televisions, etc. are consumer goods or non
basic industries.
INDUSTRIES BASED ON OWNERSHIP
(a) Public Sector Industries are owned and managed by
governments. In India, there were a number of Public Sector
Undertakings (PSUs).
Socialist countries have many state owned industries.
Mixed economies have both Public and Private sector enterprises.
(b) Private Sector Industries are owned by individual investors.
These are managed by private organisations. In capitalist
countries, industries are generally owned privately.
(c) Joint Sector Industries are managed by joint stock companies
or sometimes the private and public sectors together establish
and manage the industries.
Traditional Large-Scale Industrial Regions
These are based on heavy industry, often located near coal-fields
and engaged in metal smelting, heavy engineering, chemical
manufacture or textile production.
These industries are now known as smokestack industries.
Traditional industrial regions can be recognised by:
• High proportion of employment in manufacturing industry.
High-density housing, often of inferior type, and poor services.
Unattractive environment, for example, pollution, waste heaps,
and so on.
• Problems of unemployment, emigration and derelict land areas
caused by closure of factories because of a worldwide fall in
demand.
The Ruhr Coal-field, Germany
This has been one of the major industrial regions of Europe for a
long time.
Coal and iron and steel formed the basis of the economy, but
as the demand for coal declined, the industry started shrinking.
Even after the iron ore was exhausted, the industry remained,
using imported ore brought by waterways to the Ruhr.
The Ruhr region is responsible for 80 per cent of Germany’s total
steel production.
Concept of High Technology Industry
High technology, or simply high-tech, is the latest generation of
manufacturing activities. It is best understood as the application of
intensive research and development (R and D) efforts leading to
the manufacture of products of an advanced scientific and
engineering character. Professional (white collar) workers
make up a large share of the total workforce.
Neatly spaced, low, modern, dispersed, office-plant-lab buildings
rather than massive assembly structures, factories and storage
areas mark the high-tech industrial landscape.
Planned business parks for high-tech start-ups have become part
of regional and local development schemes.
High-tech industries which are regionally concentrated, self
sustained and highly specialised are called technopolies. The
Silicon Valley near San Francisco and Silicon Forest near Seattle
are examples of technopolies.
Iron and Steel Industry
The iron and steel industry forms the base of all other industries
and, therefore, it is called a basic industry. It is basic because it
provides raw material for other industries such as machine tools
used for further production.
The Ruhr Coal-field, Germany
This has been one of the major industrial regions of Europe for a
long time.
Coal and iron and steel formed the basis of the economy, but
as the demand for coal declined, the industry started shrinking.
Even after the iron ore was exhausted, the industry remained,
using imported ore brought by waterways to the Ruhr.
The Ruhr region is responsible for 80 per cent of Germany’s total
steel production.
Concept of High Technology Industry
High technology, or simply high-tech, is the latest generation of
manufacturing activities. It is best understood as the application of
intensive research and development (R and D) efforts leading to
the manufacture of products of an advanced scientific and
engineering character. Professional (white collar) workers
make up a large share of the total workforce.
Neatly spaced, low, modern, dispersed, office-plant-lab buildings
rather than massive assembly structures, factories and storage
areas mark the high-tech industrial landscape.
Planned business parks for high-tech start-ups have become part
of regional and local development schemes.
High-tech industries which are regionally concentrated, self
sustained and highly specialised are called technopolies. The
Silicon Valley near San Francisco and Silicon Forest near Seattle
are examples of technopolies.
Iron and Steel Industry
The iron and steel industry forms the base of all other industries
and, therefore, it is called a basic industry. It is basic because it
provides raw material for other industries such as machine tools
used for further production.
It may also be called a heavy
industry because it uses large
quantities of bulky raw materials and its products are also heavy.
Iron is extracted from iron ore by smelting in a blast furnace with
carbon (coke) and limestone. The molten iron is cooled and
moulded to form pig iron which is used for converting into steel by
adding strengthening materials like manganese.
The large integrated steel industry is traditionally located close to
the sources of raw materials – iron ore, coal, manganese and
limestone – or at places where these could be easily brought, e.g.
near ports.
But in mini steel mills access to markets is more important than
inputs. These are less expensive to build and operate and can be
located near markets because of the abundance of scrap metal,
which is the main input. Traditionally, most of the steel was
produced at large integrated plants, but mini mills are limited to
just one-step process – steel making – and are gaining ground.
Distribution :
The industry is one of the most complex and capital-intensive
industries and is concentrated in the advanced countries of North
America, Europe and Asia. In U.S.A, most of the production comes
from the north Appalachian region (Pittsburgh), Great Lake
region (Chicago-Gary, Erie, Cleveland, Lorain, Buffalo and Duluth)
and the Atlantic Coast (Sparrows Point and Morisville).
The industry has also moved towards the southern state of
Alabama. Pittsburg area is now losing ground. It has now become
the “rust bowl” of U.S.A.
In Europe, U.K., Germany, France, Belgium, Luxembourgh, the
Netherlands and Russia are the leading producers.
The important steel centres are Birmingham and Sheffield in the
U.K.; Duisburg, Dortmund, Dusseldorf and Essen in Germany; Le
Creusot and St. Ettienne in France; and Moscow, St. Petersburgh,
Lipetsk, Tula, in Russia and Krivoi Rog, and Donetsk in Ukraine.
quantities of bulky raw materials and its products are also heavy.
Iron is extracted from iron ore by smelting in a blast furnace with
carbon (coke) and limestone. The molten iron is cooled and
moulded to form pig iron which is used for converting into steel by
adding strengthening materials like manganese.
The large integrated steel industry is traditionally located close to
the sources of raw materials – iron ore, coal, manganese and
limestone – or at places where these could be easily brought, e.g.
near ports.
But in mini steel mills access to markets is more important than
inputs. These are less expensive to build and operate and can be
located near markets because of the abundance of scrap metal,
which is the main input. Traditionally, most of the steel was
produced at large integrated plants, but mini mills are limited to
just one-step process – steel making – and are gaining ground.
Distribution :
The industry is one of the most complex and capital-intensive
industries and is concentrated in the advanced countries of North
America, Europe and Asia. In U.S.A, most of the production comes
from the north Appalachian region (Pittsburgh), Great Lake
region (Chicago-Gary, Erie, Cleveland, Lorain, Buffalo and Duluth)
and the Atlantic Coast (Sparrows Point and Morisville).
The industry has also moved towards the southern state of
Alabama. Pittsburg area is now losing ground. It has now become
the “rust bowl” of U.S.A.
In Europe, U.K., Germany, France, Belgium, Luxembourgh, the
Netherlands and Russia are the leading producers.
The important steel centres are Birmingham and Sheffield in the
U.K.; Duisburg, Dortmund, Dusseldorf and Essen in Germany; Le
Creusot and St. Ettienne in France; and Moscow, St. Petersburgh,
Lipetsk, Tula, in Russia and Krivoi Rog, and Donetsk in Ukraine.
In Asia, the important centres
include Nagasaki and Tokyo
Yokohama in Japan; Shanghai, Tienstin and Wuhan in China; and
Jamshedpur, Kulti-Burnpur, Durgapur, Rourkela, Bhilai, Bokaro,
Salem, Visakhapatnam and Bhadravati in India.
Cotton Textile Industry
Cotton textile industry has three sub-sectors i.e. handloom,
powerloom and mill sectors.
Handloom sector is labour-intensive and provides employment to
semi-skilled workers.
It requires small capital investment.
This sector involves spinning, weaving and finishing of the fabrics.
The powerloom sector introduces machines and becomes less
labour intensive and the volume of production increases.
Cotton textile mill sector is highly capital intensive and produces
fine clothes in bulk.
Cotton textile manufacturing requires good quality cotton as raw
material.
India, China, U.S.A, Pakistan, Uzbekistan, Egypt produce more
than half of the world’s raw cotton.
The U.K, NW European countries and Japan also produce cotton
textile made from imported yarn.
Europe alone accounts for nearly half of the world’s cotton
imports.
The industry has to face very stiff competition with synthetic fibres
hence it has now shown a declining trend in many countries. With
the scientific advancement and technological improvements the
structure of industries changes. For example, Germany recorded
constant growth in cotton textile industry since Second World War
Yokohama in Japan; Shanghai, Tienstin and Wuhan in China; and
Jamshedpur, Kulti-Burnpur, Durgapur, Rourkela, Bhilai, Bokaro,
Salem, Visakhapatnam and Bhadravati in India.
Cotton Textile Industry
Cotton textile industry has three sub-sectors i.e. handloom,
powerloom and mill sectors.
Handloom sector is labour-intensive and provides employment to
semi-skilled workers.
It requires small capital investment.
This sector involves spinning, weaving and finishing of the fabrics.
The powerloom sector introduces machines and becomes less
labour intensive and the volume of production increases.
Cotton textile mill sector is highly capital intensive and produces
fine clothes in bulk.
Cotton textile manufacturing requires good quality cotton as raw
material.
India, China, U.S.A, Pakistan, Uzbekistan, Egypt produce more
than half of the world’s raw cotton.
The U.K, NW European countries and Japan also produce cotton
textile made from imported yarn.
Europe alone accounts for nearly half of the world’s cotton
imports.
The industry has to face very stiff competition with synthetic fibres
hence it has now shown a declining trend in many countries. With
the scientific advancement and technological improvements the
structure of industries changes. For example, Germany recorded
constant growth in cotton textile industry since Second World War
till the seventies but now it has
declined. It has shifted to less
developed countries where labour costs are low.
developed countries where labour costs are low.