Secondary Activities

Economic activities such as primary, secondary, tertiary, and quaternary revolve around obtaining and utilizing resources. Secondary activities add value by transforming raw materials into useful products. Cotton and iron ore are examples of how raw materials, when processed, become more valuable for further use. Secondary activities encompass manufacturing, processing, and construction industries.

Learning Outcomes:

1. Understand the core functions of secondary activities.
2. Comprehend the significance of manufacturing in economic development.
3. Analyze the factors influencing the location of industries.
4. Explore the classification of industries based on size, inputs, and ownership.

Manufacturing

Manufacturing is the transformation of raw materials into finished products using various methods, from handicrafts to large-scale industrial production. The key characteristics of modern manufacturing include power application, mass production, and specialized labor. Some Third World countries continue to rely on primitive manufacturing processes, while others have embraced complex production systems.

Characteristics of Modern Large-Scale Manufacturing

1. Specialization of Skills and Methods of Production: Mass production requires workers to perform specialized tasks repeatedly, reducing costs and increasing output, compared to the craft method, where products are made-to-order.
2. Mechanization and Automation: Mechanization involves using gadgets, while automation takes it further by reducing human involvement during the production process.
3. Technological Innovation: Research and development lead to technological innovations that improve efficiency, quality control, and reduce waste.
4. Organizational Structure: Modern manufacturing depends on complex machinery, specialized labor, large capital, and bureaucratic management systems.
5. Geographical Distribution: Manufacturing is concentrated in a few locations globally, such as Europe, North America, and parts of Asia, due to a combination of economic and geographic factors.

Note: Industrial concentration is limited to less than 10% of the world’s land area, yet these regions hold significant economic and political influence.

Industrial Location Factors

The location of industries is driven by the goal of minimizing production costs and maximizing profits. Key factors include:

1. Access to Market: Industries thrive where markets are large, as seen in Europe, North America, and Southeast Asia. Some industries, like aircraft and arms, serve global markets.
2. Access to Raw Materials: Industries using weight-losing raw materials, such as steel and sugar, are located near sources of raw materials to reduce transportation costs.
3. Access to Labor: Industries needing skilled labor often locate near areas with abundant skilled workers, though automation has reduced reliance on manual labor.
4. Energy Supply: Industries that require significant energy, such as aluminum, are located near energy sources like hydroelectric power and petroleum.
5. Transportation and Communication: Efficient transport and communication systems are critical for moving raw materials and finished products, contributing to the concentration of industries in regions like Western Europe and North America.
6. Government Policy: Governments may influence industrial location through regional policies aimed at promoting economic development in specific areas.
7. Agglomeration Economies: Industries benefit from being near other industries, especially leader industries, creating synergies and cost savings.

Important Concept: Footloose Industries: These industries, like computer and electronics manufacturing, are not tied to specific raw materials and can locate anywhere with good transport links.

Classification of Manufacturing Industries

Industries are classified based on size, inputs, and ownership.

Industries by Size

1. Household or Cottage Industries: Small units where artisans use simple tools and local materials to produce everyday goods, often within homes. Examples include pottery, fabric, and jewelry.
2. Small-Scale Manufacturing: Uses power-driven machines and provides employment to semi-skilled workers, often outside the home. Countries like India and China rely on small-scale manufacturing for employment.
3. Large-Scale Manufacturing: Involves significant capital, energy, advanced technology, and specialized labor, producing large volumes of goods. This type of manufacturing dominates in developed countries like the U.S., Japan, and Germany.

Industries by Inputs

1. Agro-Based Industries: Process raw materials from farms into products like food, textiles, and beverages. Agri-businesses operate on an industrial scale, often involving large corporations.
2. Mineral-Based Industries: Use minerals, such as iron and steel, aluminum, and non-metallic materials like cement.
3. Chemical-Based Industries: Include those using natural chemicals like petroleum, salt, and synthetic materials like plastics.
4. Forest-Based Industries: Use timber, bamboo, and other forest products for industries like furniture and paper production.
5. Animal-Based Industries: Use animal products such as leather, wool, and ivory.

Note: Traditional large-scale industries, like those in Germany’s Ruhr coalfield, have experienced decline due to reduced demand for coal and steel. However, new industries and services are replacing them, creating a new industrial landscape.

Industries by Ownership

1. Public Sector: Owned and managed by governments, common in socialist countries and mixed economies.
2. Private Sector: Owned by individuals or private companies, prevalent in capitalist countries.
3. Joint Sector: Managed by a partnership between public and private sectors, often in developing countries.

High Technology Industry

High-tech industries represent the latest in manufacturing advancements, characterized by intensive research and development. These industries rely heavily on white-collar professionals and are typically located in planned business parks or technopolies, like Silicon Valley in the U.S.

Comparison of Manufacturing Industries:

Iron and Steel Industry

The iron and steel industry is fundamental to industrial growth, supplying machinery for other industries. Traditionally located near raw material sources, modern mini-mills prioritize proximity to markets over raw materials. The U.S., Russia, China, and India are major producers of steel.

Cotton Textile Industry

The cotton textile industry comprises handloom, powerloom, and mill sectors, each with varying levels of capital investment and labor intensity. India, China, and the U.S. dominate global cotton production, though the industry faces stiff competition from synthetic fibers, leading to its decline in some countries.

Important Concept: The shift of the cotton industry to developing countries is due to lower labor costs.

Technological Innovations and Manufacturing Shifts

The structure of manufacturing industries is evolving due to technological advancements. For instance, robotics, computer-aided design, and advanced chemical processes are integral to modern high-tech industries. Technopolies, such as Silicon Valley, are hubs for innovation, with regional specialization and self-sustained growth.

Concept: Technopolies like Silicon Valley exemplify the concentration of high-tech industries in specific regions, driven by research and development.

Footloose Industries

Footloose industries, such as electronics, can be located in diverse places due to their reliance on easily transportable components. These industries do not require large labor forces or specialized raw materials.

Blockquote: MCQ: Which industry does not rely on location near raw materials?
(a) Steel Industry
(b) Footloose Industry
(c) Cotton Textile Industry
Answer: (b) Footloose Industry