Welcome to the World of Manufacturing and Services!
Hello! Today, we are diving into one of the most exciting parts of Human Geography: Manufacturing and the Related Service Industry. Have you ever wondered why your smartphone was designed in one country but put together in another? Or why massive car factories are usually found on the edges of cities rather than in the middle of them? That is exactly what we are going to explore.
By the end of these notes, you’ll understand how industries choose their locations, how they change over time, and how the global economy is shifting from making "things" to providing "services." Don't worry if this seems like a lot of information at first—we will take it one step at a time!
1. Classifying Industry: The Four Sectors
Before we look at where factories go, we need to know what kind of industries exist. Geographers use the Clark-Fisher Model to group jobs into four main categories:
1. Primary Sector: Getting raw materials from the earth.
Examples: Farming, mining, fishing, and logging.
2. Secondary Sector (Manufacturing): This is the main focus of this chapter. It involves taking raw materials and turning them into finished products.
Examples: A factory turning iron ore into steel, or a bakery turning flour into bread.
3. Tertiary Sector (Services): Providing a service to people or other businesses.
Examples: Teaching, nursing, retail (shops), and tourism.
4. Quaternary Sector: High-tech research and information handling.
Examples: Software development, medical research, and financial consultancy.
Quick Review:
As a country develops, it usually shifts from Primary (LICs) to Secondary (MICs) and finally to Tertiary/Quaternary (HICs). This process is called Structural Change.
2. Why There? Factors Affecting Industrial Location
Imagine you want to open a factory. You wouldn't just pick a spot at random! You would look for the Least Cost Location to maximize your profit. Here are the factors geographers look at:
Physical Factors
• Raw Materials: If your materials are heavy (like iron ore), you want to be close to the mine to save on transport costs.
• Energy: Historically, factories needed to be near coal mines. Today, the Electricity Grid makes this less important.
• Site and Land: Factories need large areas of flat, cheap land. This is why they move to the Rural-Urban Fringe (the edge of the city).
Human and Economic Factors
• Labor: Do you need a lot of workers (Labor Intensive) or highly skilled scientists?
• Markets: If you make something fragile (like glass) or perishable (like fresh cakes), you need to be near your customers.
• Transport: Proximity to motorways, railways, or deep-water ports is vital for moving goods.
• Government Policy: Governments often offer Subsidies (money) or tax breaks to encourage factories to open in areas with high unemployment.
The Concept of "Footloose" Industries
Some industries aren't tied to raw materials or specific locations. We call these Footloose Industries. Since they use light components (like microchips) and produce high-value products, they can locate almost anywhere, usually preferring areas with a "nice" environment for their workers.
Memory Aid: The "5 M's" of Location
To remember location factors, think of the 5 M's:
1. Materials (Raw materials)
2. Market (Customers)
3. Money (Capital for investment)
4. Manpower (Labor/Workers)
5. Movement (Transport)
3. Weber’s Theory of Industrial Location
Geographer Alfred Weber created a famous model called the Least Cost Theory. He focused on one main thing: Transport Costs.
Weber argued that a factory would locate based on whether the product is "Weight-Losing" or "Weight-Gaining":
• Weight-Losing (Bulk-Reducing): The finished product is lighter than the raw materials.
Example: Copper smelting. You mine a ton of rock but only get a small amount of copper.
Location Rule: Locate near the Raw Materials.
• Weight-Gaining (Bulk-Gaining): The finished product is heavier or bulkier than the raw materials.
Example: Bottling soda. Water is added at the factory, making the bottles heavy and expensive to ship.
Location Rule: Locate near the Market.
Weber used a formula called the Material Index (MI):
\( MI = \frac{\text{Weight of Localised Raw Materials}}{\text{Weight of Finished Product}} \)
Quick Tip: If the MI is greater than 1, locate near the materials. If it is less than 1, locate near the market!
4. Industrial Change: Deindustrialisation and NICs
The world's "industrial map" is constantly changing. We are seeing two major trends:
Deindustrialisation in HICs
In High-Income Countries (HICs) like the UK or USA, many factories have closed down. Why?
1. Mechanisation: Machines and robots replaced human workers.
2. Offshoring: Companies moved factories to countries where labor is cheaper.
3. Resource Exhaustion: Local coal or iron ran out.
The Rise of NICs (Newly Industrialised Countries)
Countries like China, India, and Vietnam have seen a massive boom in manufacturing. This is due to Globalisation. These countries often have:
• Large, low-cost labor forces.
• Governments that encourage foreign investment.
• Improving infrastructure (better ports and roads).
Did you know?
The shift of manufacturing from HICs to LICs/MICs is often called the Global Shift. It has led to cheaper products for us, but job losses in traditional industrial heartlands.
5. Transnational Corporations (TNCs)
A TNC is a huge company that operates in many different countries. Think of Nike, Apple, or Toyota. They are the "engine" of the manufacturing world.
Why do TNCs operate globally?
• To be closer to different markets.
• To escape trade tariffs (taxes on imports).
• To use the cheapest labor and land available.
The "New International Division of Labour" (NIDL)
TNCs usually split their work up:
• Headquarters & R&D: Stay in HICs (London, New York, Tokyo) where there are highly skilled managers.
• Assembly/Production: Moves to LICs/MICs where labor is cheap.
Common Mistake to Avoid: Don't assume TNCs are always "bad." While they are often criticized for low wages (sweatshops), they also provide jobs, build infrastructure, and bring new technology to developing countries.
6. The Service Industry (Tertiary Sector)
In many countries, services are now more important than manufacturing. The location of services is different from factories:
• Consumer Services: Like shops and cinemas. They follow the Market (where people live).
• Professional Services: Like banks and law firms. They usually cluster in the CBD (Central Business District) of large cities to be near other businesses. This is called Agglomeration.
• High-Tech Services: These often locate in Science Parks near universities to recruit smart graduates.
Key Takeaway:
The service industry is "people-oriented" rather than "material-oriented." Its location depends on Accessibility and Communication (high-speed internet) rather than the weight of the product.
Final Quick Review Questions
1. Why would a lumber mill locate near a forest? (Hint: Weight-losing)
2. What does "footloose" mean in geography?
3. Why have HICs experienced deindustrialisation?
Keep going! You've just covered the core concepts of the Manufacturing and Service Industry chapter. Geography is all about seeing the patterns in the world around you—the next time you see a "Made in..." label, you'll know exactly why it was made there!