Secondary Activities (World)

Manufacturing

Manufacturing is a key secondary activity that involves the transformation of raw materials into finished goods using labour, capital, technology, and machinery. It adds significant value to the raw materials, creating products that satisfy a wide range of human needs and desires. Manufacturing is a cornerstone of industrial economies, driving economic growth, employment, and technological advancement.

Characteristics Of Modern Large Scale Manufacturing

Modern large-scale manufacturing is characterized by several distinct features that differentiate it from earlier forms of production:

• Division of Labour and Specialization: Production processes are broken down into a series of small, specialized tasks, with workers focusing on one or a few specific operations. This specialization increases efficiency and productivity.
• Mechanization: Extensive use of machines and automated equipment to perform tasks previously done by hand. This allows for mass production, higher output, and greater precision.
• Standardization: Products are manufactured to uniform standards, ensuring consistency in quality, size, and performance. This is facilitated by interchangeable parts and mass production techniques.
• Technological Sophistication: Modern manufacturing relies on advanced technology, including sophisticated machinery, robotics, computer-aided design (CAD), and computer-aided manufacturing (CAM).
• Large Capital Investment: Setting up and maintaining large-scale manufacturing facilities requires substantial capital investment in factories, machinery, technology, and research and development.
• Factory System: Production is concentrated in large factories, bringing together labour, capital, and machinery in a centralized location.
• Organized Market and Distribution: Products are distributed through organized supply chains, wholesalers, retailers, and global markets.
• Mass Production: The aim is to produce large quantities of standardized goods at a lower cost per unit.

Why Do Large-Scale Industries Choose Different Locations?

The location decisions for large-scale industries are complex and influenced by a multitude of factors aimed at optimizing production costs, efficiency, and market access. These factors include:

• Access to Raw Materials: Locating near sources of raw materials reduces transportation costs, especially for heavy or perishable materials (e.g., iron ore for steel plants, cotton for textile mills).
• Proximity to Markets: Being close to consumers minimizes the cost and time taken to deliver finished goods, crucial for products with high transport costs or those that are perishable.
• Availability of Labour: Access to a sufficient supply of skilled and unskilled labour at competitive wages is essential.
• Power Supply: Industries, particularly heavy ones, require a constant and affordable supply of energy. Proximity to power generation sources or areas with robust power infrastructure is vital.
• Water Resources: Many manufacturing processes require significant amounts of water for cooling, processing, and sanitation. Access to reliable water sources is a key factor.
• Land Availability and Cost: Suitable land for building large factories, infrastructure, and potential expansion, at an affordable price, is a major consideration.
• Transportation and Communication Facilities: Well-developed transport networks (roads, railways, ports, airways) and communication systems are necessary for efficient movement of raw materials and finished products, and for business operations.
• Government Policies and Incentives: Government policies regarding industrial zones, tax incentives, subsidies, environmental regulations, and infrastructure development in specific regions can heavily influence location choices.
• Capital and Financial Institutions: Availability of finance, banking facilities, and investment opportunities plays a critical role in establishing and expanding industries.
• Agglomeration Economies: Industries may cluster together in certain regions to benefit from shared infrastructure, specialized labour pools, and access to related industries (e.g., component suppliers, repair services), creating synergies.

Foot Loose Industries

Footloose industries are those that are not dependent on any specific location for their raw materials, market, or labour. They can be located anywhere, often choosing sites based on lower land and labour costs, or government incentives.

• Characteristics:
• Minimal Dependence on Raw Materials: Often use standardized or processed inputs, or their raw materials are light and easily transportable.
• Low Space Requirement: Do not require large factories or extensive infrastructure.
• Low Pollution: Typically generate less pollution compared to heavy industries.
• Flexibility in Location: Can be located in urban, suburban, or even rural areas.
• Emphasis on Skilled Labour: Often require skilled or semi-skilled labour for assembly or service operations.
• Examples: Electronics industry (assembly of components), software development, jewellery manufacturing, and certain types of food processing.
• Location Factors: Access to skilled labour, good communication networks, favourable government policies, and lower operational costs are key considerations.

Classification Of Manufacturing Industries

Manufacturing industries can be classified based on several criteria, providing a comprehensive understanding of their nature, scale, inputs, outputs, and ownership.

Industries Based On Size

This classification is based on the investment in plant and machinery, number of people employed, and volume of production.

• Household Industries Or Cottage Manufacturing:
• Description: The smallest scale of manufacturing, where goods are produced in homes by artisans using simple tools and techniques. Often family labour is used.
• Characteristics: Low capital, low technology, local markets, home-based production.
• Examples: Pottery, handicrafts, handloom weaving, basket making, food processing (e.g., pickles, papads).
• Small Scale Manufacturing:
• Description: Industries that involve a higher investment than household industries but are still relatively small compared to large-scale ones. They often employ more people than cottage industries and may use some machinery.
• Characteristics: Moderate capital, use of some machinery, employs more people than cottage industries, often serves local or regional markets.
• Examples: Small workshops producing furniture, metal goods, leather products, plastic goods.
• Large Scale Manufacturing:
• Description: Industries characterized by significant capital investment, extensive use of machinery and technology, large factories, mass production, and a large workforce.
• Characteristics: High capital, advanced technology, division of labour, standardization, factory system, mass production, global or national markets.
• Examples: Iron and steel, automobiles, petrochemicals, electronics, textiles.

Industries Based On Inputs/Raw Materials

This classification groups industries based on the source of their raw materials.

• Agro Based Industries: Use plant and animal products as raw materials.
• Food Processing: Processing of fruits, vegetables, grains, meat, and dairy products. Examples: Sugar, flour mills, dairy products, canning of fruits and vegetables.
• Textile Industry:
• Cotton Textiles: Uses raw cotton. (Major centres: Ahmedabad, Mumbai, Coimbatore).
• Jute Textiles: Uses raw jute fibre. (Major centres: Hugli river basin, West Bengal).
• Woollen Textiles: Uses wool. (Major centres: Panipat, Ludhiana, Kanpur).
• Silk Textiles: Uses silk. (Major centres: Kanchipuram, Mysore, Bhagalpur).
• Synthetic Fibres: Uses chemicals derived from petroleum. (Major centres: Mumbai, Gujarat).
• Sugar Industry: Uses sugarcane as raw material. (Major centres: Uttar Pradesh, Maharashtra, Bihar).
• Animal Based Industries: Use animal products. Examples: Leather industry (uses hides and skins), wool industry.
• Forest Based Raw Material Using Industries:
• Paper: Uses wood pulp, bamboo, rags.
• Plywood: Uses timber.
• Furniture: Uses timber.
• Lacquerware: Uses lac.
• Medicines: Some traditional medicines use forest products.
• Mineral Based Industries: Use minerals and metals as raw materials.
• Iron and Steel Industry: Uses iron ore, coal, limestone. (Major centres: Jamshedpur, Bokaro, Rourkela).
• Aluminium Smelting: Uses bauxite. (Major centres: Odisha, West Bengal, Kerala).
• Cement Industry: Uses limestone, coal, gypsum. (Major centres: Rajasthan, Madhya Pradesh, Gujarat).
• Automobile Industry: Uses steel, aluminium, rubber, plastics. (Major centres: Gurugram, Mumbai, Chennai).
• Chemical Based Industries: Use mineral ores and chemicals as raw materials.
• Fertilizer Industry: Uses minerals like phosphate rock, potash, and natural gas. (Major centres: Gujarat, Tamil Nadu, UP).
• Petrochemicals: Uses crude oil and natural gas.
• Pharmaceuticals: Uses various chemicals and herbs.
• Dyes and Paints: Uses chemicals.
• Synthetic Fibres: Uses chemicals derived from petroleum.

Industries Based On Output/Product

This classification groups industries based on the primary product they manufacture.

• Basic Industries: Industries that produce raw materials for other industries. Example: Iron and steel industry, aluminium smelting.
• Consumer Industries: Industries that produce goods for direct consumption by people. Example: Sugar, textiles, paper, electronics.

Industries Based On Ownership

This classification is based on who owns and operates the industry.

• Public Sector Industries: Owned and managed by the government. Example: BHEL, SAIL.
• Private Sector Industries: Owned and managed by individuals or private companies. Example: TISCO, Reliance Industries.
• Joint Sector Industries: Owned and operated jointly by the government and private individuals. Example: Maruti Udyog.
• Cooperative Sector Industries: Owned and operated by producers or suppliers of raw materials. Example: Sugar cooperatives in Maharashtra, Amul dairy.

Traditional Large-Scale Industrial Regions

Traditional large-scale industrial regions are areas where industries have been concentrated for a long time, often evolving around the availability of key resources like coal and iron ore, and favourable transport links.

The Ruhr Coal-Field, Germany

The Ruhr Area in Germany is a classic example of a traditional large-scale industrial region, historically dominated by coal mining and heavy industries like iron and steel production.

• Historical Development: Developed in the late 19th and early 20th centuries, fueled by abundant coal deposits and the discovery of iron ore in the region. The availability of coal was crucial for smelting iron ore and powering the machinery.
• Key Industries: Coal mining, iron and steel production, heavy engineering, chemicals.
• Location Factors: Rich coal seams, proximity to iron ore sources (initially local, later imported from Sweden), excellent water transport via the Ruhr and Rhine rivers, and the development of a dense railway network.
• Transformation: Like many older industrial regions, the Ruhr area has undergone significant structural changes. With the decline of coal mining and heavy steel production due to global competition and environmental concerns, it has diversified into other sectors like services, technology, research, and tourism, while still retaining some heavy industry presence.

Iron And Steel Industry

The iron and steel industry is a fundamental heavy industry that provides essential raw materials for many other manufacturing sectors. It involves the extraction and processing of iron ore, coal, and limestone to produce iron and steel.

• Importance: Steel is used in the production of machinery, tools, vehicles, infrastructure (bridges, buildings), railways, and consumer goods.
• Location Factors: Proximity to raw materials (iron ore, coal, limestone), power supply, water, labour, transport, and markets.
• Global Distribution: Major producing countries include China, India, Japan, USA, Russia, and Germany.
• In India: Major centres are located in the mineral-rich belts of Jharkhand-Odisha and West Bengal-Chhattisgarh, as well as other locations like Bhilai, Rourkela, Jamshedpur, Bokaro, Vijaynagar, and Salem.

Cotton Textile Industry

The cotton textile industry is one of the oldest manufacturing industries, converting raw cotton into yarn and fabric. It is a major employer and a significant contributor to the economy.

• Importance: Provides clothing, employment, and raw materials for other industries (e.g., garment manufacturing).
• Location Factors: Historically linked to cotton-growing regions, humid climate (though now managed by air conditioning), skilled labour, access to markets, and transport facilities.
• Global Distribution: Historically centred in Manchester (UK) and Osaka (Japan). Major producers today include China, India, USA, Pakistan, and Bangladesh.
• In India: Ahmedabad ("Manchester of India"), Mumbai, Coimbatore, Kanpur, and Tiruppur are significant cotton textile centres.

Concept Of High Technology Industry

The high-technology industry, often referred to as "high-tech," is a sector characterized by innovation, intensive research and development (R&D), and the application of advanced scientific knowledge to produce sophisticated goods and services.

• Characteristics:
• Innovation and R&D: Driven by continuous innovation and significant investment in research and development.
• Skilled Labour Force: Relies heavily on highly educated and skilled professionals, including engineers, scientists, programmers, and technicians.
• Minimal Pollution: Generally produces less air and water pollution compared to heavy industries, though it can generate electronic waste (e-waste).
• Low Space Requirement: Often requires less factory space per employee compared to heavy industries.
• Flexibility: Can adapt quickly to changing technologies and market demands.
• Output: Produces advanced products like computers, semiconductors, telecommunication equipment, aerospace products, and sophisticated medical devices.
• Location Factors:
• Skilled Labour: Access to a highly educated and skilled workforce is paramount.
• Proximity to Research Institutions: Often located near universities and research centres to foster collaboration and access talent.
• Good Communication and Transportation: Excellent communication networks (internet, telecommunications) and transport links are essential.
• Government Support: Often benefit from government R&D funding, tax incentives, and favourable policies.
• Agglomeration Economies: Clustering in specialized industrial parks or districts allows for synergy and shared resources.
• Global Distribution: Major high-tech industrial regions include Silicon Valley (USA), Boston (USA), Seattle (USA), Tokyo (Japan), Seoul (South Korea), Taiwan, and various technology hubs in Europe and increasingly in India (e.g., Bengaluru, Hyderabad, Noida).