Industry

The inputs, processes and outputs of industry

Any industry can be viewed as a system with inputs, processes,
outputs and feedback. The diagram below shows how these are linked.

A simple version of a factory system would be raw materials go in (inputs),

they are worked upon and changed (processes) and manufactured goods come
out (outputs). Of course a system is more complicated and often involves
several inputs, processes and outputs which do not necessarily happen within
a short space of time in the same country.

Inputs can be divided into physical inputs and human (cultural) inputs.
Physical inputs are the naturally occurring things such as water, raw
materials and the land. Human inputs are such things as money, labour and
skills.

Outputs can be negative or positive, although they are usually the latter.
 Negative outputs include waste products, such as off-cuts.
 The positive outputs are the finished product and the money gained
from the sale of that product.
Feedback is what is put back into the system. The main two examples of this
are money, from the sale of the finished product, and knowledge, gained
from the whole manufacturing process. This knowledge could then be used to
make the product better off and to improve the efficiency of the processes.
The example of the car industry
A very good example of an industrial system is the car manufacturing
industry, like the Rover factory at Longbridge in Birmingham.

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 This is actually more of an assembly industry as most of the parts are made
elsewhere and then brought to Longbridge to be put together.

Types of industries
Primary industries
 these extract raw materials (which are natural products) from the
land or sea e.g. oil, iron ore, timber, fish.
 They produce raw materials for the secondary sector
 Mining, quarrying, fishing, forestry, and farming are all example of
primary industries.

Secondary industries
 they involve the processing of raw materials into another
product by manual labour or machines.
 They form the processing and manufacturing sector of the
economy
 The products are sent to wholesalers, retailers and
consumers while others find their way to other industries
e.g. fertilizers, mining machinery etc
 Secondary industries often use assembly lines e.g. a car
factory.

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 Tertiary industries
 These do not produce raw materials or final products but they
provide services to other people and industries.
 Tertiary industries can include doctors, dentists, refuse
collection and banks.

Quaternary industries
 These involve the use of high tech industries.
 They provide human resources for the other industries
 They help in solving problems by researching solutions e.g
preventing and curing diseases, improving productivity e.t.c
 People who work for these companies are often highly skilled
and qualified within their field of work.
 Research and development companies are the most common
types of businesses in this sector.
Goods associated with the above industries and links between them

All of the companies are linked in one way or another. For example,
the raw material cotton is extracted by primary industries; the cotton
may then be turned into an item of clothing in the secondary industry.
Tertiary industries may advertise the goods in magazines and
newspapers. The quaternary industry may involve the product being
researched to check that the item of clothing meets the standards
that it claims too.

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 Employment structures
You can use the percentage of people working in each sector to help describe
how developed a country is. This is called the employment structure. By
looking back through history you can also see how one single country has
developed by looking at the changes in their employment structure.
The more developed a country becomes the more it will rely on secondary
and, in particular, tertiary industries. A less developed country will be
characterised by a greater percentage of the population in primary
industries, usually farming.

Example: Ethiopia
Primary: 88%; Secondary: 2%; Tertiary: 10%; Quaternary:0%
Ethiopia is a typical example of a developing country, in terms of its
employment structure. The majority of the population work in the primary
sector. Most of these are subsistence farmers, who basically grow enough
for themselves and their family, but little more. They don't have a great
deal, if any, left over to sell at the market. Ethiopia has very little
manufacturing industry, as it does not have the raw materials available, and
lacks sufficient investment and technology toe xploit the natural resources
that it does have.
10% work in the tertiary industry, primarily in the main cities, such as Addis
Ababa, where there are hospitals, schools and other professional
[Link] remainder of the country has very poor access to education and
health care due to this lack of people in the tertiary sector.

Example: The United Kingdom

Primary: 3%; Secondary: 25%; Tertiary: 70%; Quaternary: 2%
The United Kingdom exhibits the employment structure of a well-developed
country. The number of people working in the primary sector has steadily
decreased as mines have closed and technology has meant fewer people are
required.
The number of people working in the secondary sector is still reasonably
high, but has also been falling steadily as new, more efficient technology has
again meant less people being needed.
The massive growth has been in the tertiary sector, where huge numbers of
jobs have been created. This is not just in the traditional tertiary industries
like teaching and health care, but also in the tourist industry, the computer
industry and the financial industry.

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 There has also been the introduction of the quaternary sector, although this
still takes up a very small percentage of the overall employment structure of
the country.

Industrial Location
 Industries are forms of business as people engage in industrial
activities for a profit.
 In order to maximise profit, industrialists need to cut different kinds
of costs relating to transport of raw materials, transport of finished
goods, labour costs, capital costs and land costs(rent or purchasing land)
 Industrialists will choose sites which minimise these costs so as to
maximise profits.

There are many factors considered in choosing the site for an industry.

Factors which influence industrial location

1. Capital- Heavy industries and high-tech industries need the most
capital. It is more likely to influence the choice of country/region as
opposed to the area within it. Certain countries have well developed capital
and money markets which will attract companies which want to raise large
sums of money.

2. Raw materials- these are the inputs required to manufacture a

product. It is ideal for industries to locate close to raw materials as they
are often cheap to buy and expensive to transport. This is especially true
were the manufacturing process will lead to a reduction in the weight of
the final product versus the raw material. Examples include ;
 Border Timbers in Mutare – near to forestry in the Eastern Highlands.
 Mutare Board and Paper Industries near forestry
 Kadoma Textile Industries – near cotton growing industries such as
Gokwe
 Zisco Steel – located near iron ore deposits around Kwekwe.


3. Availability of cheap land- Heavy industries need lots of land which

is flat and cheap and therefore will locate further away from CBD’s. Light

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 industries will need less land and may be more concerned about how the
factory looks to impress clients.

4. Energy- Heavy industries need lots of energy. They will therefore

locate near energy infrastructure such as power lines and coal fields if coal
is the major fuel used. Hwange thermal power station is located near coal
used in the generation of electricity.

5. Labour- Hi-tech light-industries may need to locate close to

universities/colleges as they often require skilled workers. Heavy
industries may choose to locate near residential areas to cut transport
costs for labour or in areas of high unemployment as it is easier to employ
people.

6. Government- Government incentives are often used to influence the

location of industries. In Zimbabwe incentives are offered for companies
opening in areas designated as Growth Points or Export Processing Zones.
The higher the capital investment, the more attractive a government loan
becomes and governments may attach location preconditions before
granting such loans.

7. Market- industries locate near markets if the products that a

factory produces are large and heavy, (i.e the manufacturing process adds
weight to the product) and it becomes cheaper to transport the raw
material than the final product e.g potatoes. Locating close to market is
also preferred where the output is perishables e.g bakeries, butcheries,
horticulture e.t.c.

8. Transport Networks- Transport infrastructure already developed

will influence location of industries as they will locate closer to major
highways, railway lines, ports, airports etc, which will make it easier for
them to receive raw materials and ship out finished products.

9. Water – water is used in most industries for cooling engines and for
cleaning materials. Most industries actually locate near a stream or river
for easy access to water

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 10. Existence of other related industries – industrialists are attracted
by other industries enabling them to share costs relating to common
infrastructure such as roads, telephone, buildings, electricity
infrastructure. This might lead to agglomeration. Agglomeration is a
process whereby industries cluster together in order to benefit from each
other.

11. Other communications- The use of the internet and email has meant
that more people can work from home and there is a greater freedom for a
location worldwide.

Case Studies

A raw material based industry – ZISCO STEEL

ZISCO is located in Redcliff near Kwekwe in the Midlands province. It is
located near the Harare Bulawayo highway and railway line. ZISCO uses
five main raw materials;
1. Iron ore – it was located here because of the existence of high grade
ore in the Redcliff area. As these deposits have been depleted, ore is
brought in by rail from Buchwa mine by rail.
2. Limestone is also mined at Redcliff
3. Water is obtained from the Sebakwe Dam and the Carctus Poort Dam.
4. Coke is brought in by rail from Hwange

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 The processes carried out at ZISCO Steel
Coke, limestone and iron ore are fed into the top of the blast furnace. The
iron ore is converted into pure iron while the impurities are separated from
the molten iron by the limestone. The molten iron is tapped at the bottom of
the furnace and used to make steel and alloys. The minerals used to make
alloys such as manganese, chromium, nickel are fond close to ZISCO along
the Great Dyke.

Advantages of ZISCO’s Location

1. It is close to road and rail network
2. Close to raw materials such as manganese, iron ore and limestone.
3. Located near the town of Kwekwe which provides labour
4. It is located near a water source, the Sebakwe river
5. It is also located near main ZESA power lines

Benefits of ZISCO to Zimbabwe

1. Creation of employment
2. Enhances development of infrastructure such as roads, telephone lines
e.t.c
3. Provides raw materials to local industries which use steel and its alloys
as inputs
4. Improves the living standards for the local people.
5. Brings in foreign currency due to the export of steel and its alloys.
Disadvantages of ZISCO
1. Air pollution as fumes are released into the air
2. Water pollution as effluents are discharged into the rivers
3. Land degradation as scares are left on the landscape as mines extract
the various raw materials used.
4. A drain on the budget of the government as mismanagement and
corruption lead to poor performance and the need for continued bail
outs from the government.

A Market oriented industry – Willowvale Mazda Motor Industry

Location
 It is found in an industrial estate south west of the Harare city
centre called Willowvale industrial area.

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  It is located close to high density surburbs such as Kambuzuma,
Highfield and Rugare
Advantages from the location
1. Near a large market as Harare is the capital city
2. It is located near a large pool of labour (Kambuzuma etc)
3. The area has good road networks and a well developed railway
network.
4. There is plenty of space for expansion
5. The area has a well developed power supply system

Processes/Activities
The company receives parts as completely knocked down parts. These come
from countries such as Japan, Germany, Italy etc and they come in
containers. The parts are assembled into finished motor vehicles such as
Mazda 3, Peugeot 406 etc. The company uses skilled labour while some of
them are expatriates who come to support the models made from their
parent companies.

Linkages to other industries

Willow vale is linked to industries such as;
 Pilkington Glass industry from Mutare
 Dunlop tyres from Bulawayo
 Steel from Zisco
 Banks, insurance companies, supplies of stationery etc.
Advantages
1. Employment creation
2. Enhances infrastructural development around willow vale
3. Supports many local industries by providing a markert for their
products and services.
4. Improves living standards for people as people buy cheaper cars, are
employed and find a market for their products.
5. Promotes trade with other countries and generates foreign currency.
Disadvantages
1. Pollution
2. Expatriate workers remit their incomes to their mother countries.
3. Requires large space and other industries are crowded out.

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 Transnational Corporations or Multinational Corporations
This is a type of industry with operations in various countries and their
headquarters are found in other countries. Senior positions are usually held
by expatriate workers from the parent company. Examples include Unilever,
Delta, Lonhro, Bata Shoe Company.

Advantages
1. Creation of employment
2. Tranfare of technology
3. Creates favourable trade relations with other countries
4. Sophisticated machinery can be acquired through TNCs
5. Improves the standards of living of the local people
6. Enhances infrastructural development
7. Promotes cultural exchange amongst countries
Disadvantages
1. They usually pay low wages to workers
2. Profits are remitted to the mother country
3. If not properly managed they become monopolies and may exploit
consumers
4. They may negatively change the cultures of host countries
5. They bring stiff competition to local industries and may cause local
industries to relocate.
6. Discourage growth of local indigenous people

Case study of a TNC in Zimbabwe -Tanning at Bata

The Bata tanning factory is located in Gweru and is controlled by the Bata
Shoe Company from abroad.
Location advantages
1. Centrally located to benefit from CSC in Bulawayo, Kadoma, Harare,
Marondera, Chinhoyi and Masvingo.
2. The location is near good roads and rail networks
3. Plenty of water supply from the municipality
4. Near a pool of labour from Mkoba High density surbub.
5. Centrally located to access markets in all major urban areas.

Processes/activities at Bata
 Most skins come from cattle like Hereford, Afrikander, Angus etc.

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  The skins are preserved using salt and stored until they are needed.
 They are then soaked to remove dirt and to soften them
 Lime and sodium sulphate are used to clear hair from the hides.
 The hides are sliced to required sizes and then used.

Reasons for changing the location of industries

1. When raw materials are no longer depleted
2. When raw materials are costly to extract
3. Availability of alternative and cheaper raw materials elsewhere
4. High costs of rent and rates
5. Availability of cheaper labour elsewhere
6. Exhaustion of coal based power supplies
7. The rise in competition from foreign companies
8. Government policies such as the land reform program.

Effects of relocation
Source area
1. Unemployment as more and more people lose their jobs because of the
move
2. Creation of ghost settlements.
3. Outmigration especially by young and energetic people to other areas
in search of jobs
4. Local businesses also suffer as people have less money to spend.
5. Infrastructural decay as it may no longer be maintained as it may have
been maintained by or for the relocating industry.
6. Under utilisation of infrastructure as it was created for a large
volume of activities which are no longer possible because of the
relocation.
7. Social and psychological stress caused by the loss of jobs.

Solutions to these problems

1. Diversification into other industries instead of relying on just one
industry.
2. Retraining the unemployed to equip them with new skills.
3. Direct government intervention through subsidies and tax incentives
to attract other industries to the areas loosing industries.

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 4. Promoting the development of small to medium enterprises and
informal businesses to absorb the people who have been left
redundant.
Effects on receiving area
1.

Case Study Developed Country

A traditional area of heavy industry- Teeside (UK)

Iron and steel industries began to develop along the banks of the
River Tees in the 19th century due to its access to raw materials and
fuel supplies. As the Tees estuary is so wide, it was ideal for large
carriers to transport products to any area in the world. As LEDC
countries began to develop their industries with much lower labour
costs, the industry in Teeside began to decline. The coal mines and
shipyards in Teeside have all closed now.

A footloose industry- M4 Corridor

Industrial regions, where footloose industry is the most dominant, are

often located along motorway corridors. The greatest concentration
of all in the UK is along the M4 corridor between London and Cardiff
in South Wales. The M4 corridor provides businesses with excellent
transport links and good access to international airports. The
industries are also located close to traditional university towns where
the necessary skilled workers are likely to reside.

NIC’s- South Korea a Newly Industrialised Country in Asia

In 40 years South Korea has changed from a poor country with few
resources into one of the worlds top ten industrial countries.

This is because there is a cheap and efficient workforce available in

Asia and almost everywhere on the peninsula is less than 100 km from
the sea. The government of South Korea also put up many trade

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 barriers to stop imports of manufactured goods from other countries
so that they continue to develop their own home-grown industries.

Summary

 All systems have inputs, outputs and processes.

 A simple version of a factory system would be raw materials
go in (inputs), they are worked upon and changed (processes)
and manufactured goods come out (outputs).
 Primary industries extract raw materials, which are natural
products untreated by people from the land or sea.
 Secondary industries involve the manufacture of raw
materials, into another product by manual labour or
machines.
 Tertiary industries neither produce a raw material nor make
a product but instead provide a service.
 Quaternary industries involve the use of high tech
industries.
 There are several factors which influence the location of
industry (raw materials, transport, market, site and labour
costs).

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