Introduction
- There are four main types of economic activities: primary, secondary, tertiary, and quaternary.
- Secondary activities enhance the value of natural resources by transforming raw materials into useful products.
- Examples:
(a) Cotton: Raw cotton has limited use, but when processed into yarn, it becomes valuable for clothing production.
(b) Iron Ore: Cannot be used directly from mines; it gains value when converted into steel for making machinery and tools. - This process applies to various resources from farms, forests, mines, and the sea.
- Secondary activities primarily involve manufacturing, processing, and construction industries, playing a critical role in adding value to natural resources.
Manufacturing
Manufacturing encompasses a wide range of production activities, including handicrafts, molding iron and steel, producing plastic toys, and assembling computer components or space vehicles.
- Characteristics
(i) Power Usage: Manufacturing processes typically involve the application of power.
(ii) Mass Production: Focuses on the mass production of identical products.
(iii) Specialized Labor: Utilizes specialized labor in factory settings for creating standardized commodities. - Methods of Manufacturing
(i) Modern Techniques: Many manufacturing processes use advanced machinery and technology.
(ii) Traditional Techniques: Some regions, particularly in Third World countries, still engage in more primitive manufacturing methods.
Characteristics of Modern Large Scale Manufacturing
Modern large-scale manufacturing has several key characteristics:
1. Specialization of Skills and Production Methods
- Craft Method: Factories producing small, made-to-order quantities incur higher costs.
- Mass Production: In contrast, mass production involves creating large quantities of standardized parts, with each worker focusing on a single task repeatedly, which lowers costs.
2. Mechanization
- It involves using machines to perform tasks.
- Automation is an advanced form of mechanization where machines operate without human intervention. Automatic factories with sophisticated feedback and computer control systems are now common.
3. Technological Innovation
Research and development drive technological innovations that enhance quality control, reduce waste, improve efficiency, and address pollution issues.
4. Organizational Structure and Stratification
Modern manufacturing features are-
- Complex machinery
- High levels of specialization and division of labor, allowing for increased production with lower effort and costs
- Significant capital investment
- Large organizational structures
- Executive bureaucracy
5. Uneven Geographic Distribution
- Modern manufacturing is concentrated in specific regions, covering less than 10% of the world's land area. These areas become hubs of economic and political power.
- Compared to agriculture, manufacturing sites are less visible and cover smaller areas due to the intensity of production.
- For example, a 2.5 sq km area in the American corn belt may host several large farms employing 10-20 workers, while the same area could accommodate multiple large factories employing thousands.
Question for Chapter Notes - Secondary Activities
Try yourself:
Which of the following is a characteristic of modern large-scale manufacturing?Explanation
- Specialization of skills and production methods is a key characteristic of modern large-scale manufacturing.
- It allows for increased production with lower effort and costs.
- This approach involves dividing tasks among workers to focus on specific, repetitive tasks.
- Specialization leads to higher efficiency and productivity in manufacturing processes.
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6. Access to Market
- The availability of a market for manufactured goods is crucial for industrial location.
- A "market" refers to consumers who not only demand products but also have the purchasing power to buy them.
- Regions with sparse populations offer limited markets, making them less attractive for industry.
- Areas like Europe, North America, Japan, and Australia have high purchasing power and provide substantial global markets for manufactured goods.
- Regions in South and Southeast Asia also present significant market opportunities due to their large populations.
- Certain industries, such as aircraft manufacturing and arms production, operate in global markets, allowing them to reach consumers worldwide.
7. Access to Raw Materials
- Industries need raw materials that are inexpensive and easy to transport.
- Industries that rely on heavy, bulky, or perishable materials (like steel, sugar, and cement) are usually located near their sources. For example, agro-processing and dairy industries are situated close to farms and milk supplies to ensure freshness.
8. Access to Labour Supply
- The availability of labor is crucial for industry location. Some manufacturing sectors require skilled workers, while increasing mechanization and automation have reduced the overall need for labor.
9. Access to Energy Sources
- Industries that consume a lot of power, such as the aluminum industry, are often located near energy sources. Historically, coal was the primary energy source, but today, hydroelectricity and petroleum are also significant for many industries.
10. Access to Transportation and Communication Facilities
- Efficient transport is essential for moving raw materials to factories and delivering finished products to markets. Transport costs significantly influence industrial location.
- Regions like Western Europe and Eastern North America have well-developed transport systems, promoting industrial concentration. Improvements in transportation have also contributed to regional economic development and specialization in manufacturing.
- Good communication is vital for the effective exchange and management of information within industries.
11. Government Policy
- Governments implement regional policies to promote balanced economic growth, often establishing industries in targeted areas.
12. Access to Agglomeration Economies/ Links between Industries
- Proximity to leading industries and other related businesses can create advantages known as agglomeration economies. These benefits arise from the connections between different industries, leading to cost savings and increased efficiency.
Classification of Manufacturing Industries
Manufacturing industries are categorized based on several criteria, including size, inputs or raw materials, output or products, and ownership.
Industries based on Size
The size of an industry is determined by factors such as the amount of capital invested, the number of employees, and the volume of production. Based on these criteria, industries can be classified into three categories: household or cottage industries, small-scale industries, and large-scale industries.
Household Industries or Cottage Manufacturing
Household industries, also known as cottage manufacturing, represent the smallest manufacturing units.
- Characteristics
1. Artisans use local raw materials and simple tools to produce everyday goods in their homes.
2. Family members or part-time labor often assist in the production process.
3. Finished products may be consumed by the household, sold in local markets, or used for barter.
A man making pots in his courtyard- example of household industry in Nagaland
- Economic Factors
1. Capital investment and transportation have minimal impact, as this type of manufacturing has low commercial significance.
2. Most tools used in this sector are locally devised. - Common Products
The household manufacturing sector produces various everyday items, including, foodstuffs, fabrics, mats, containers, tools, furniture, shoes, wooden figurines, pottery and bricks from clay and stones, Jewelry made by goldsmiths from gold, silver, and bronze and crafts from bamboo and wood sourced from local forests.
Small Scale Manufacturing
Small scale manufacturing is different from household industries because it operates in a workshop outside the home.
- This type of manufacturing uses local raw materials, simplemachines powered by electricity, and semi-skilled workers.
- It creates jobs and increases local buying power.
- Countries like India, China, Indonesia, and Brazil focus on labor-intensive small scale manufacturing to provide employment for their populations.
Large Scale Manufacturing
Large scale manufacturing is characterized by a significant market, diverse raw materials, substantial energy requirements, specialized workers, advanced technology, assembly-line mass production, and considerable capital investment.
- Historical Development
1. This form of manufacturing has evolved over the last 200 years, primarily in the United Kingdom, northeastern U.S.A., and Europe.
2. It has since spread to nearly all regions of the world. - Types of Industrial Regions
Large scale manufacturing can be categorized into two main types:
1.Traditional Large-Scale Industrial Regions: Heavily concentrated in a few developed countries.
2. High-Technology Large Scale Industrial Regions: Emerging in less developed countries.
Question for Chapter Notes - Secondary Activities
Try yourself:Which one of the following industry produces raw materials for other industries?
Explanation
The industry whose products are used to make other goods by using them as raw materials are basic industries. Ex. - Iron and Steel Industry.
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Industries based on Inputs/Raw Materials
Industries Based On Output/Product
- Basic Industries: Industries that produce raw materials used by other industries.
Examples
1. Iron and steel manufacturing.
2. Link to Other Industries:
Iron and steel tools → Machinery → Textile industry → Clothing for consumers. Consumer Goods Industries: Industries that create products consumed directly by individuals.
Examples
1. Food products (breads, biscuits).
2. Beverages (tea).
3. Personal care items (soaps, toiletries).
4. Household products (paper, televisions).
Industries Based On Ownership
(a) Public Sector Industries
- Industries that are owned and managed by the government.
- In India, numerous Public Sector Undertakings (PSUs) exist.
- Common in socialist countries, where many industries are state-owned.
- Found in mixed economies, which include both public and private sector enterprises.
(b) Private Sector Industries
- Industries owned by individual investors or private organizations.
- Primarily managed by private entities.
- Predominant in capitalist countries, where industries are typically privately owned.
(c) Joint Sector Industries
- Industries that are managed by joint stock companies, involving collaboration between the public and private sectors.
- Established and managed collectively by both sectors.
Concept of High Technology Industry
High technology, or high-tech, refers to the most advanced generation of manufacturing activities.
- Characteristics
1. High-tech industries rely heavily on R&D to create scientifically and technically advanced products.
2. A significant portion of the workforce consists of professional (white-collar) workers, who are highly skilled specialists, outnumbering production (blue-collar) workers. - Technologies Used
1. Robotics in assembly lines.
2. Computer-Aided Design (CAD) and manufacturing.
3. Electronic controls for smelting and refining.
4. Continuous innovation in chemical and pharmaceutical products. - High-tech industries are characterized by modern, low-rise office, plant, and laboratory buildings rather than large factories and storage areas.
- Planned business parks for high-tech start-ups are integral to regional and local development strategies.
Technopolies
Concentrated regions with self-sustained, highly specialized high-tech industries.
Examples are Silicon Valley near San Francisco and Silicon Forest near Seattle.
Manufacturing, including high-tech industries, plays a vital role in the global economy, with key sectors such as iron and steel, textiles, automobiles, petrochemicals, and electronics being critical to economic development.
Question for Chapter Notes - Secondary Activities
Try yourself:Sillicon Valley is located in the
Explanation
is the correct option.Silicon Valley, in the southern San Francisco Bay Area of California, San Francisco is located on the West Coast of the United States
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