Chapter 6. Secondary Activities

• 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 technically means ‘to produce by hand,’ but in this context, it refers to process of converting raw materials into more useful and value fabricated goods using machines.
• Most of Third World countries still ‘manufacture’ in literal sense of term. This is difficult to present a full picture of all manufacturers in these countries.

Characteristics of Modern Large-Scale Manufacturing
Skills Specialization: In industries, one task is repeated frequently, resulting in specialisation in that task. This entails a significant manufacturing expense. Mass manufacturing, on other hand, entails repetitive creation of a huge number of standardised pieces by each worker.
Mechanisation: major production is done by automated procedures or equipment in industries. Mechanisation does not necessitate human thought.
Technological Advancement: To eliminate waste, maintaining quality, battling pollution, and increasing efficiency, most up-to-date technology is used, as well as ongoing innovation.
Stratification and Organizational Structure:
Complex machine technology, great specialisation, division of labour, huge capital, large organisations, and executive bureaucracy are all characteristics of modern manufacturing.
Geographically Disparate Distribution: Mineral and other resource-rich regions are where industries are concentrated. These places make up less than ten percent of total land area on planet. These areas have grown into major economic and political power centres.

Location of industry
• A vast number of geographical and non-geographical factors influence location of industry in a given location. Industry earnings are maximised through lowering expenses. As a result, industries should be placed where production costs are lowest. following factors have an impact on where industry is located:
(1) Access to Raw Material: Steel and sugar industries, which rely on cheap, bulky, & weight-losing materials [ores], are located near raw material sources. Dairy processing, perishable food processing, and agro-based processing are all done close to raw material sources.
(2) Access to Market: Big concentrations of industries can be found in places that provide large markets for finished industrial goods, such as developed areas of Europe, America, Japan, Australia, and South Asia.
(3) Access to Sources of Energy: Coal, petroleum, and hydroelectricity are primary energy sources. Industries that consume more energy are located near these sources.
(4) Access to Labour Supply: Industries are placed in areas where skilled labour is available. Some manufacturing processes still necessitate expert labour.
(5) Access to Source of Energy: Industries that require more energy, such as iron and steel, are positioned closer to source of energy supply. Industry machines require a lot of energy to run. Coal, petroleum, hydroelectricity, natural gas, and nuclear energy are primary sources of energy.
(6) Access to Transportation and Communication Facilities: Industries are concentrated in areas with excellent transportation and communication systems for interchange and administration of data.
(7) Access to Agglomeration Economies: benefits generated from links that exist between different industries are referred to as agglomeration economies. Small businesses and ancillary units like to operate near leading industries in order to get benefits of proximity to large or basic industries.
(8) Government Policy: Governments support diverse regions by establishing industries in a specific link between industrial zones in order to achieve balanced economic development.

Classification of Manufacturing Industries
• Industries are classified on basis of their size, inputs/ raw materials, output/ products and ownership.

Industries Based on Size
• Industries are categorised into following categories based on amount of capital invested, number of workers employed, and volume of production:
(1) Household Industries or Cottage Manufacturing:
This is tiniest unit of production. Local raw materials and rudimentary tools are used by artisans, and production is done with support of family members. Local consumption and markets are focus of production. Mats, baskets, ceramics, jewellery, antiquities, and crafts, for example, requires little money.
(2) Small Scale Manufacturing: These industries use semi-skilled labour, use power-driven machines, use locally sourced raw materials, and produce products in workshops. It creates jobs and boosts purchasing power of local community. Small-scale manufacturing units have been built in India, China, Indonesia, and Brazil.
(3) Large Scale Manufacturing: Here, mass production takes place, requiring a large market, a large number of raw materials, a large amount of energy, specialised personnel, modern technology, and a considerable amount of money. Traditional large scale industrial regions and high technology large scale industrial regions are two types of large scale manufacturing industries.

Industries Based on Inputs/Raw Materials
On basis of raw materials used, industries are classified as follows:
Agro based Industry: This entails transformation of raw materials from farms and fields into finished goods such as sugar, fruit juices, drinks, oils, textiles [cotton, jute, silk], rubber, & so on.
Agri Business: It is industrial-scale commercial farming. Tea plantations and tea factories surrounding plantations are mechanised, very big, & highly structured farms.
Food Processing: Processes such as canning, manufacturing cream, fruit processing, confectionary, drying, fermenting, and pickling are all part of agro-based business.
Mineral based Industry: Minerals such as ferrous metals like iron and steel, as well as non-ferrous metals like aluminium and copper, are used as raw materials in these sectors. Cement and pottery are two mineral-based non-metallic industries.
Chemical based Industry: Natural chemical minerals such as salts, sulphur, potash, mineral oil in petrochemical industry, and chemicals obtained from wood and coal are used in these industries. Chemical-based industry includes synthetic fibre and polymers.
Animal based Industry: Animal-based industries include industries that utilise animal products such as leather, woollen fabrics, and ivory.
Forest based Industry: Forest-based industries are those that utilise forest products such as timber, wood, bamboo, grass, lac, & so on.

Industries based on Output/Product
• This term refers to industries that are defined by their finished goods or amount of production. These are following:
(1) Basic industries: These are businesses that create raw materials for other businesses, such as iron and steel.
(2) Industries of Consumer Goods: These are industries that generate products that are directly consumed by people, such as tea, biscuits, & toiletries.

Ownership-based industries
• industries are divided into three categories based on who owns them:
(1) Public Sector Industry: This refers to industries that government owns and manages. It’s called public sector undertakings in India. All industries in socialist economies are owned by government.
(2) Private Sector Industry: This refers to industries that are owned and operated by private individuals. majority of industries in a capitalist economy are privately owned.
(3) Joint sector Industry: These industries are managed by joint stock companies or sometimes public and private sector join hands to manage and establish industries.

Traditional Large Scale Industrial Regions
• Metal smelting, heavy engineering, chemical manufacture, and textile production are examples of traditional large-scale industries located near coal fields.
• Their characteristics include high employment, high housing density, but on other hand they have poor services, an unappealing environment, pollution, and waste piles. Many industries have closed as a result of these issues, resulting in unemployment, emigration, and wastelands.

Ruhr Coal Field, Germany
• Due to coal and iron-ore resources, this area was an important industrial area. However, when coal demand fell, iron ore became depleted, and industrial waste and pollution rose, sector began to dwindle.
• New Ruhr landscape has formed, focusing on other items such as Opel car assembly factory, new chemical factories, universities, and out-of-town shopping malls.

Iron and Steel Industry
• Because it provides raw materials or a foundation for other industries, it is referred to as a fundamental industry. Because of bulky raw materials and heavy finished products, it is called heavy industry.
• These industries are located near raw material sources, such as iron ore, coal, manganese, and limestone, or near ports where raw materials may be delivered quickly.

• This industry can be found in both developed and developing countries, including United States, United Kingdom, Germany, France, Belgium, Ukraine, Japan, China, & India [Jamshedpur, Durgapur, Rourkela.].

Cotton Textile Industry
This industry has three sub-sectors:
Handloom: It is a labor-intensive operation that employs semi-skilled individuals, requires little capital, and involves procedures such as cloth spinning, weaving, & finishing.
Power loom: It is less labour intensive, use of machines and thus production is more.
Mill Sector: It is a high-capital investment that demands high-quality raw cotton and produces in large quantities. More than half of world’s raw cotton is produced in India, China, United States, Pakistan, Uzbekistan, and Egypt. Because of high cost of labour, cotton textile sector is now relocating to developing countries.

High Technology Industry
• This is called a high-tech industry since it is highly technological and involves extensive scientific and engineering research and development.
• workforce consists of highly skilled specialists, called white-collar workers, who outweigh manufacturing labour force [blue collar].
• These industries include robotics, computer-aided design and manufacturing, electronics, novel chemicals, and pharmaceuticals.

Foot Loose Industries
• Because these industries are not dependent on a certain raw resource, they can be found anywhere. They rely on component parts heavily, have a limited workforce, and produce in small quantities.

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