UNIT 4: INDUSTRIAL ACTIVITIES

1 WHAT IS INDUSTRY?
Industry is the area of economic activity that involves producting physical
products in large quantites.These are manufactured usig raw mterials or in
industrial processes.

HISTORICAL EVOLUTION OF INDUSTRY

The main stages in the manufacturing of physical products are:
-

Artisanal labour :
Up to the late 18 th century. During this stage, master craftsmen
converted raw materials into manufactured goods using their energy
and skill. They formed craftsmens districts in major cities:
blacksmiths, carpenters and tanners.Production was limited.

First Industrial Revolution:

From the late 18 th century to the late 19 th century. Large-scale
industrial mnufacturing processes emerged in Great Britain during
this period. The invention of steam-driven machines fuelled by coal
made it posible to develop industries such as textiles and
manufactured metal goods.

Second Industral Revolution:

From the late 19 th century to the late 20 th century. This period
brought in mass-produced industrial products: vehicles, electrical
appliances and medicines. New and more efficient manufacturing
processes, such as assembly lines, were developed. New energy
sources, such as oil and electricity, were discovered.

Third Indusrial Revolution:

From the late 20 th century to the 21st century. Production processes
began to use increasingly more technology nd less labour. Robots and
automated devices began to do most of the work. The most dynamic
industrial sectors are information technology, microelectronics nd
biotechnology.

THE MAIN TYPES OF INDUSTRY

There are a wide variety of industrial activities, each with very different
characteristics. The three main types of industry are:
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Heavy industry:

This cosumes huge amonts of resources: raw materials, capital, energy,

labour and space. Large facories carry out the primary processing of raw
materials. The main products that heavy industry creates are metallurgical
products, chemicals and construction materials.
-

Semi-heavy industry:

This uses products produced by heavy industry to manufacure capital

goods, whic are products used, in turn, by other industries in their
manufacturing processes. The main products manufactured in semi-heavy
industry are machinery, parts and components.
-

Light industry

This produces most of the tems we use on a daily basis: mobiles, shoes,
beverages, etc.
There are two types:
-

Traditinal activiies. These are very labour-intensive in their production

processes.
High-tech activities. These dependo n research and development (R &
D), which is used to manufacture computers, mobile telephones, etc.

ENERGY AND TECHNOLOGY

Changes in energy use and technological innovations are key aspects of
the development of industrial activity.
TRADITIONAL ENERGY SOURCES
Most industry uses electrical power in its manufacturing processes. This
electricity mainly comes from the traditional energy sources mentioned
below, but also from renewable sources of energy:
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Oil:
Oil is the most commonly used energy source because it
provides gases, petrol, diesel oil, aeroplane fuel, lubricants,
greases, waxes, asphalt and more. There main reserves are in
Venezuela, the Middle East, Canada, Russia, Libya, the United
States and Nigeria.

Coal:
Coal was the most commonly used energy source during the Indusrial
Revolution. It is used to produce electricity in coal-fired power
stations. The main reserves are located in the United States, Russia
and China.

Natural gas:
Gas is used in gas-fired power stations and for heating. Burning it
produces less pollution than coal and oil. There are limited natural gas
reserves, but more than those of oil. Then main reserves are located
in Russia, Iran, Qatar and Turkmenistan.

Nuclear energy:
Nuclear power is used to move turbines which generate electricity.
Nuclear accidents cause significant damage both to people and the
enviromnment.
The main producers are the United States and France. Japan and
Germany are considering whether they should abandon this energy,
while China, Russia, India and South Korea are building new nuclear
power plants.

TECHNOLOGY IN INDUSTRY
Production processes use tolos, methods and practical knowledge with
different degrees of sophistication.
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Rudimentary technology:

Technology inherited diectly from artisanal manufacturing. Examples

include the tolos used today to manuacture shoes (diez. Brushes,
moulds, hammers, etc.)
-

Traditional industrial technology:

Machines and tolos that originated during the first two periods of the
Industrial Revolution. Examples include industrial processes for
manufacturing metal goods from mineral sor looms in the textile
industry.
-

Advanced technology:

This is base don knowledge resulting from enormous amounts of

practical research and innovation. Examples include research and
development processes in sectors such as microelectronics, information
technology telecommunications, robotics and aeronautics.

3 INDUSTRY AND GEOGRAPHIC AREAS

FACTORS OF INDUSTRIAL LOCATION

Factors of industrial location are the conditions which must be met by

places where industrial companies set up their businesses in order to
reduce production costs as much as posible.

Availability of workers and business owners: The number of

workers depends on the type of industrial activity.
o Advanced technology industries: have fewer, more skilled,
workers.
o Traditional industries: have more workers who are less
skilled.

Good transport links:

Industry requires locationsthat are accesible for workers and
suppliers of raw materials, parts, technology and services.
Industrial companies also need good trnsport infrastructureroads, airports, ports and train stations- to make it easy tos hip
products to their customers. For this reason, many are located
near major cities.

Cheap, reliable energy:

Companies all require a reasonably priced electricity supply
without unexpected power cuts.

Government support:
Industrial entrepreneurs look for locations with policies that
support acess to credit, greater legal certainly and less
bureaucracy.

Access to capital:
The majority of he money required to set up an industrial
activity comes from financial institutions or investment funds.
If a location does not meet the conditions to make the activity
profitable, investors will not back the project.

Technology:
New industries usually emerge in more developed countries and
regions which hav highly skilled personnel, research centres and
capital to invest.

When the technology becomes better known, industries move

to other countries with cheaper labour.

Available land and industrial buildings:

In addition to the conditions already mentioned, it is essenial to
have Access tol and and buildings suitable for production
activities.

TYPES OF INDUSTRIAL AREAS

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Technology parks or science parks:

These areas are ocuupied by companies that manufacture hightech products. They need to be located near research centes
and universities because knowledge is their essential raw
material.

Industrial estate or industrial parks:

These are made up of a group of industrial buildings used to
produce products for sale from manufactured materials or parts.
They are usually on the outskirts of cities or in locations with
very good transport links.
They need their products to reach the largest number of
potential customers whilst the lowest transport costs posible.

Large factories:
Factories use large amounts of raw maerials and energy. To
guarantee Access to different types of input, they need to be
located close o high-capacity transport infrastructure such as
sea ports, railways and roads.
Industrial activities include processing iron and other minerals;
for example, the iron and steel industry and the heavy metal
industry, oil processing (petrochemicals) and shipyards.

4 INDUSTRY AROUND THE WORLD

The geographic distribution of the worlds most industrialised areas
follows a spatial pattern determined by factors of location.
COUNTRIES IN TERMS OF LEVEL OF INDUSTRIALISATION
The worlds countries can be divided into three categories in terms of
their level of industrialisation.

Industrialised countries:
These countries began developing their industrial activities
during the First and Second Industrial Revolutions. They account
for 62% of all wealth generated by production activities. They
focus on technology and anufacturing of high quality products.
Examples include the United States, Japan and Germany.

Newly industrialised countries:

In recent decades, these countries have begun to develop
heavy industry and traditional light industry (clothing and
shoemaking). They pay their large laour force very low wages.
They have managed to move to he top of the global rankings
for industrial activity and are beginning to take the lead in
technology sectors such as the aerospace and aeronautics
industries, consumer electronics and biotechnology. Examples
include China, Malaysia, Brazil, Turkey, South Africa and India.

Industrialising countries:
These countries have the lowest capacity for industrial
production. They have gone from an agrarian economy to a
service economy without developing their industry first. An
increase in the nmber of people moving to cities has created
the necessity for consumer good industries, such as
construction materials, food and clothing, to meet the needs of
this increased urban population.
WEALTH GENRATED BY INDUSTRIAL PRODUCTION

United States:
This is the worlds most industrialised country. It has an
abundance of raw materials and capital. There is a high level of
technological development and a skilled labour forc. Its major
industries include those of iron and steel, textiles, agri-business,
chemicals and new technology.

Japan:
Despite having limited raw materials and energy resources, it is
a leading industrial power due to a highly skilled labour force
and a high level of technological development. Key

manufactured goods include electronics, steel ships and motor

vehicles.

European Union:
This is the most industrialised region in the world. Industry is
concentrated mainly in Germany, north-east France, the United
Kingdom and northern Italy, regions which have an efficient
transport network and skiled labour.

China:
Considered the worls factory, China is now competing to
become the leading industrial power on the planet.Its industrial
development is base don abundant cheap labour. However, its
industries are evolving towards higher-value products and more
skilled workers.

5 TRENDS IN INDUSTRIAL ACTIVITY

POSITIVE TRENDS
Industry that is committed to the environment and society has the
following characteristics:
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Energy and raw materials:

There is less use of energy from non-renewable natural
resources due to their high levels of pollutants, and more use of
renewable energy sources, such as solar and wind power. There
are more efficient manufacturing processes. Resused and
recycled materials are used in manufacturing to lessen
industrial waste.

Technology and space:

Technological advances allow us to produce more with less. This
akes it necessary to invest in research centres and universities,
which help produce knowledge.
It is also important to develop places where related companies
can occupy the same space or clustr, reducing transport costs
and making their processes more efficient.

Consumer good production:

Producing healthy, durable and reciclable goods reduces the
amount of waste and saves energy and raw materials.

Good working conditions:

ptoviding reasonable pay, permanent contracts and the possibility of
profesional growth all attract a skilled workforce.

NEGATIVE TRENDS
Some industrial compnies putt he viability of their economic activity at risk
and act in ways that harm the environment.
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Energy and raw materials:

Some companies waste energy and raw materials in their
manufacturing processes. They believe that the cost of these will
continue to be low so they continue using inefficent and wasteful
methods of production.

Technology and space:

Processing large quantities of raw materials using an enormous
amount of energy reslts in industrial areas with factories that produce
a lot of pollution. These have a very negative impacto n the
environment.

Consumer goods production:

The priority is the manufacturing of large amounts of goods as
cheaply as posible. In the market, these goods are competitive in
terms of price but they are very low quality.

Lack of job security:

These companies use a lot of unskilled labour. They also cut labour
costs by offering temporary contracts, no training and poor pay.