SSC 103 Note On Manufacturing
SSC 103 Note On Manufacturing
SSC 103 Note On Manufacturing
Although manufacturing is now used to describe the production of goods on a large scale by machinery
housed in factories, the root meaning of the word manufacture is to make a thing by hand. In a modern
factory, workers are usually assigned to distinct specialised activities such as:
i. changing of raw materials into more useful commodities;
ii. the use of special equipment or machinery which may be operated by hand or by inanimate power;
iii. the provision of a special workplace which is the factory;
iv. the turning out of uniform finished products.
Manufacturing is the transformation of organic and, or, inorganic materials by mechanical or chemical
means into new products of greater value, whether the operation is performed by power-driven machinery or
by hand, whether it is done in the factory or the worker’s home. The place or building where the actual
transformation of materials takes place is called the factory. This is where the machines of the plant are
installed and operated. The unit in which an industrial activity is carried out is an industrial establishment or
plant. Thus, an industrial plant is an integral part of an individual establishment in an industry. It is owned
by a firm, which is a company in an industry. Therefore, a single firm may have one or more than one plant
in an industry and can have plants in different industries. Also, several firms may have plants in the same
industry. By this, an industry can be conceived as a group of plants or units or establishments producing
similar products; it consists of all plants/establishments which are engaged in the same activity. In industrial
geography, the basic unit of observation is the industrial establishment or plant.
Types of Manufacturing
There are two broad classes of manufacturing activities: local craft manufacturing and modern
manufacturing.
a. Local Craft Manufacturing: a craft is a pastime or a profession that requires particular skills and
knowledge of skilled work. Artisans (or craftsman) work operations may employ several workers.
Occasionally machinery may be used, but often the activities encompass goods that are handmade by artisans
or those skilled in a particular trade including everything from art galleries to handmade textiles to culinary
products. Products of the craft industry include leather works, pottery, carving, and cloth weaving. In the
more advanced economies, the craft industry represents a sizable chunk of the growing small business
community. However, in underdeveloped nations where ethnic tradition still dictates the nature of human
occupation, local craft is an important employer of labour. Often, craftspeople operate independently and are
not franchised. The industry usually relies on locally sourced supplies and community support to maintain a
customer base; they depend mainly on raw materials obtained from their immediate locality. Start-up costs
for this type of business are low, and most owners can create items in their own homes. In sum, local craft
industries are creative activities mostly undertaken by manual operations using simple raw materials but their
products are of high artistic quality.
b. Modern Manufacturing: this involves the transformation of raw materials by mechanical or chemical
means into finished goods. Modern manufacturing uses power-driven machines; it involves the use of
sophisticated machines that are usually capital-intensive. The source of materials could be local or foreign or,
even, both. Also, it employs all categories of labour. Final products are of high value and expensive. Most of
the industries are located at the rural-urban fringes because they usually occupy large areas of land and can
contribute more to environmental pollution than the craft industry. Modern manufacturing can be classified
as primary or secondary. Secondary industries can be further divided into the following classes.
2. Economic Factors: some of the important economic factors influencing the location of industries are:
a. Capital: Modem industries are capital-intensive and require huge investments. Big cities like Lagos,
Abuja, Ibadan, and Kaduna are big industrial centres because the big capitalists live in them.
b. Industrial Inertia: Industries tend to develop at the place of their original location, though the original
cause may have disappeared. This can be in the form of geographical or industrial inertia.
c. Efficient Organisation: Efficient and enterprising organisation and management is essential for running
modern industry successfully. Bad management sometimes squanders away the capital and puts the industry
in financial trouble leading to ruin. Bad management does not handle the labour force efficiently and
tactfully, resulting in labour unrest which may result in strikes and lock-outs lead to the closure of industries.
d. Finance: Finance is required for the setting up of an industry, for its running, and also at the time of its
expansion. The availability of capital at cheap rates of interest and in adequate amounts is a dominating
factor influencing industrial location. In addition, establishment of industries involves the daily exchange of
cash. So, areas with better banking facilities are better suited to the establishment of industries. Furthermore,
there is a constant fear of damage to machine and man in industries for which insurance facilities are needed.
e. External Economies: External economies also exert considerable influence on the location of industries.
External economies arise due to the growth of specialized subsidiary activities when a particular industry is
mainly localized at a particular centre with transport facilities. External economies could also be enjoyed
when a large number of industrial units in the same industry are located in close proximity to one another.
3. Other Factors: these are less easy to measure than the other factors, they include:
a. Labour: Adequate supply of cheap and skilled labour is necessary for an industry. Labour supply is
important because workers in large numbers are often required and because people with skill or technical
expertise are needed. The attraction of an industry towards labour centres depends on the ratio of labour cost
to the total cost of production. In spite of increasing mechanisation, modern industries still require large
number of workers. There is no problem in securing unskilled labour by locating such industries in large
urban centres. Although, the location of any industrial unit is determined after a careful balancing of all
relevant factors, yet the light consumer goods and agro-based industries generally require a plentiful of
labour supply.
b. Government Policies: Government activity in planning the future distribution of industries, for reducing
regional disparities, elimination of pollution of air and water and for avoiding their heavy clustering in big
cities, has become an important locational factor. There is an increasing trend to set up all types of industries
in an area, where they derive common advantage of water and power and supply to each other the products
they turn out. The state policy of industrial location has a greater hand in the establishment of a number of
factories. Moreover, government can indirectly attract industries to certain areas by improving infrastructure
that will attract businesses such as construction of a new fast highway.
c. Services: Existence of public utility services and location of allied activities influence the location of an
industry to a certain extent. The government may classify some areas as backward where the entrepreneurs
would be granted various incentives like subsidies, tax holiday, provision of finance at concessional rate, or
supply of power at cheaper rates and provision of education and training facilities. Some entrepreneurs
induced by such incentives may come forward to locate their units in such areas.
d. Personal Factors: In deciding the location of industrial units, sometimes an entrepreneur may have
personal preferences and prejudices against certain localities. For instance, Mr. Ford started to manufacture
motor cars in Detroit simply because it was his home-town. In such cases, personal factor dominates other
considerations. However, this kind of domination is rare.
e. Strategic Considerations: In modern times, strategic considerations are playing a vital role in determining
industrial location. During war-time, a safe location assumes special significance; because in times of war the
main targets of air attacks would be armament and ammunition factories and industries supplying other
commodities which are required for war.
f. Historical Factors: Historical incidents also play a dominating role in determining the location of
industries in certain cases. An excellent example is the development of cotton-textile industry in Lancashire.
Major Industrial Areas of the World
If grouped by continents, there are four major industrial regions across the world. These are:
a. Europe:
i. Great Britain: This includes the Mid-lands, North-east England, Yorkshire, Lancashire, Greater London,
Central Scotland and the Belfast Regions.
ii. West Germany
iii. France
iv. Belgium, Netherlands, Scandinavia, Switzerland and Italy
b. North America:
i. U.S.A.: major areas of industrial activities are Southern New England and Southern Appalachian Region.
However, asides these major areas, there are other areas of scattered industrial activities in the U.S.A.
among these are: Los Angeles, San Francisco, St. Louis, Houston, Indianapolis and Cincinnati.
ii. Canada: Toronto, Hamilton, and Montreal.
iii. Lakeland Region: Pittsburgh, Chicago, Michigan, Detroit, Duluth, Cleveland, Buffalo.
iv. Mid-Atlantic States: New York, Philadelphia, Baltimore.
c. Asia: Japan, Russia, China and India.
d. Southern continents: manufacturing is very scarce in the southern continents; the few major ones are
found in Australia where the main activity takes place in Sydney and Melbourne. In Africa, industrial activity
is still under-developed. Sporadic industrial activities take place in Johannesburg, Cape Town and Kimberley
(all in South Africa). In these places the main industrial activity is mineral processing. Also, scattered
industrial investments are found in Nigeria with consumer goods as the major products. In South America,
pockets of industrial activities are found around Buenos Aries and Sao Paulo where food processing of lower
standard is the main business.
i. Insufficient Capital: the major obstacle to industrial promotion in developing countries is insufficient
accumulation of industrial capital. The problem of industrialization is so difficult because it takes a long time
and a lot of investment to achieve adequate capital accumulation. Incomes in the developing nations are so
low that savings are non-existent. The citizens of most of these countries are just on or, even, below the
subsistence level hence capital formation is equally almost non-existent.
ii. Economic Potentials: A common characteristic of practically all developing countries is the low amount
of capita per head. Many countries are tackling the problem of capital investment by attracting foreign
industrialists through generous incentives. In some, there is actual capital flight out of the countries.
iii. Shortage of Modern Technology: Technological transfer is more difficult than perceived by developing
countries. Countries in possession of modern technology tend to guide it jealously. Technology evolves very
slowly and the developing countries appear impatient for indigenous technology to evolve to maturity. Some
cannot develop the simplest form of technology.
iv. Shortage of Skilled Labour: there is a shortage of skilled labour in terms of scientists and professionals.
v. Inadequate Infrastructures: infrastructures are neither adequately nor sufficiently provided in developing
countries. Telecommunication facilities, good roads, electricity, etc. are grossly inadequate.
vi. Political Climate: Industrial promotion is greatly influenced by the political climate in many of the
developing nations. In the few politically stable countries, the response seems limited. In the others where
there are political conflicts, the responses have been negative.
Environmental Impacts of Manufacturing Industry
Environmental degradation is the destruction or reduction in the quality of physical environment - - land,
water, vegetation and the atmosphere. At a global level, certain industrial activities pollute the earth’s
atmosphere irrespective of where they are located. The current destruction of the ozone layer is effected by
the production and consumption of certain gases particularly chlorofluorocarbon gases. However, the
negative impacts of industrial activities are felt most in the immediate environment of the industrial
establishment. These negative impacts are in the form of pollution and degradation of the environment.
During its routine production processes manufacturing pollutes its immediate environment in several difficult
ways. The air is polluted by the emission of smoke, ashes, gases and particulates. Industrial air pollution
promotes smog especially in cities which are the location of most industrial establishments. Smog as a
pollutant has toxic effect which on reaching dangerous concentrations may cause cardiac and bronchial
ailment. The greatest danger to environment by industrial activities is in the production and disposal of
wastes. Manufacturing effluents which often drain to the immediate streams and water body such water is
fouled and contaminated. Scraps and toxic wastes are often dumped on the land. They degraded the land,
destroy vegetation and sometimes kill the wildlife. Certain giant manufacturing establishments which are
located close to streams and water body tend to increase the temperature of the water. Iron and steel
manufacturing establishments and hydro-electric production plants are the worst polluters in this regard.
Manufacturing plants are liable to accidental breakdown thus the immediate environment may be jeopardized
by such accident. The 1986 Bhopal accident in India where a gas plant leaked dangerous elements to its
surroundings was perhaps one of the worst industrial accidents in history, killing about 2500 persons and
injuring about 200,000 others some permanently. The Chernobyl (in the former USSR) accident of a nuclear
reactor was equally costly to life and environment. Other notable industrial disasters are as follows.