Geography Industry – System, Processing, Assembly, Factors, Agglomeration, Industrial Parks, Case Studies
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Industrial Systems and Types
- Manufacturing – secondary sector
- To Make
- Heavy Industry (iron and steel)
- Light Industry (assembly of computer)
- Input – physical (timber, iron) , human (labor) and economic (capital) – expenditure or cost
- Process – 1st stage, 2nd stage and stores
- Output – For sale, by product (left over with some value) and waste product (no value and disposed) – profit or loss
Processing and Assembly
- Processing – directly of raw material. Iron industry uses iron, coal and limestone – close to raw material
- Assembly – put together different parts (build component of car) – footloose industry
High Technology Industry
- 1960s – Silicon Valley USA – South of San Francisco
- All developed and newly Industrialized Countries (NICs) have one technology cluster
- UK- Cambridge Science Park
- India – Bangalore
- Silicon chip, computer, software, robot, aerospace and technically advanced countries
- Proximity to universities for R and D, clustering for skilled workers
- Boeing in Washington is largest building in terms of volume (assembly site for aircraft)
Classification of Industry
- Large and small scale – based on size
- Heavy and light – based on nature of process
- Market oriented and raw material oriented – based on location
- Processing and assembly
- Capital intensive and labor intensive
- National and transnational
- Fordist (mass production on assembly line method on large scale making standardized product like automobile) and Flexible (specialized product with high technology to respond to change)
Factors Affecting Industrial Location
- Physical factors – Site, raw material , energy, natural routes, climate
- Human factors – capital, labor, transport, market, government influence and quality of life
- Location – least cost and highest profit location
- Scale of production – physical site, labor, customers
- Method of organization – traditional to highly innovative
- Product and range of product manufactured
Industrial Agglomeration
- Clustering of economic activities
- Result in companies enjoying benefit of external economies of scale
- One successful company attracts another company
- External economies can be urbanization economies (cost saving resulting from urban location) and localization economies (firm locates close to suppliers or firm that it supplies)
Industrial⟋Trading Estates or Industrial Parks
- Lightweight version of business park with offices and light industry rather than heavy weight industry
- Inner cities to rural areas
- Concentrate infrastructure in small area
- Attract new business by integration in one location
- Separate industry from residential areas
- Eligibility of industrial estate for grants and loans under regional economic development policies.
Changing Location of Manufacturing
- Global shift in manufacturing from developed to developing world as part of globalization
- Areas of high and low concentration of manufacturing in each country
- In USA, North east covers 35% manufacturing job with 1⟋8th country as of now which was 70% before – now shifted to Sunbelt that is south and west
- Manufacturing concentrated in and around urban areas – now shift towards greenfield rural locations
- Shift from inner city to suburb increased as 20th century progressed
Bangalore – Case Study
- Garden City, Culture of learning
- High technology – HAL, ISRO
- Biotechnology, ICT, aerospace
- 1980s – 1st large scale foreign investment as Texas Instruments in high technology
- Silicon Valley of India – skilled labor, high investment, high technology, dust free environment
- 4th largest technology cluster after Silicon Valley, Boston and London
- 3 clusters – electronics, technology and software
- NASDAQ – world՚s biggest stock exchange opened 3rd office in Bangalore in 2001
- Outsourcing in India – low labor cost, ICT skilled shortage and English speaking workforce
✍ Manishika