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

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