Manufacturing

Manufacturing is the process of converting raw materials into finished goods of higher value. It spans a vast range of activity — from handicrafts and moulding iron and steel to stamping plastic toys and assembling delicate computer components or space vehicles. Despite this variety, all manufacturing shares three common characteristics: the application of power, the mass production of identical products, and the use of specialised labour in factory settings to produce standardised commodities.

Manufacturing can be done with modern power and machinery, or it can remain very primitive. In many Third World countries, manufacturing is still carried out in the literal sense — by hand. Because of this diversity, it is difficult to present a full picture of all manufacturers in these countries, so more emphasis is given to industrial activity that involves less complicated systems of production.

Characteristics of Modern Large-Scale Manufacturing

Modern large-scale manufacturing has several defining features.

Specialisation of Skills / Methods of Production

Under the ‘craft’ method, factories produce only a few pieces that are made-to-order, which keeps costs high. In contrast, mass production involves producing large quantities of standardised parts, with each worker performing only one task repeatedly. This division of labour lowers costs and increases output.

‘Manufacturing’ Industry vs. ‘Manufacturing Industry’

The word ‘manufacturing’ literally means ‘to make by hand’, but today it includes goods made by machines. Conceptually, an industry is a geographically located manufacturing unit that maintains books of accounts and records under a management system. The term ‘industry’ is comprehensive and is often used synonymously with ‘manufacturing’ — for example, when we speak of the ‘steel industry’ or ‘chemical industry’, we think of factories and processes. However, many secondary activities (like the entertainment industry or tourism industry) are not carried on in factories. For clarity, the longer expression ‘manufacturing industry’ is used.

Mechanisation

Mechanisation refers to using gadgets to accomplish tasks. Automation — manufacturing without the aid of human thinking during the process — is the advanced stage of mechanisation. Automatic factories with feedback and closed-loop computer control systems, where machines are developed to ‘think’, have sprung up all over the world.

Technological Innovation

Technological innovations through research and development are an important aspect of modern manufacturing. They help with quality control, eliminating waste and inefficiency, and combating pollution.

Organisational Structure and Stratification

Modern manufacturing is characterised by complex machine technology and extreme specialisation and division of labour. This allows more goods to be produced with less effort and at lower costs. It also requires vast capital, large organisations, and an executive bureaucracy to manage a large-scale manufacturing industry.

Uneven Geographic Distribution

Major concentrations of modern manufacturing have flourished in only a few places, covering less than 10 per cent of the world’s land area. These nations have become centres of economic and political power. In terms of total area covered, manufacturing sites are much less conspicuous and concentrated on much smaller areas than agriculture — because of the greater intensity of processes. For example, 2.5 square kilometres of the American corn belt usually includes about four large farms employing 10–20 workers and supporting 50–100 persons. The same area could contain several large integrated factories and employ thousands of workers.

Why Do Large-Scale Industries Choose Different Locations?

Industries maximise profits by reducing costs. Therefore, they should be located at points where production costs are minimum. Several factors influence industrial location.

Access to Market

The existence of a market for manufactured goods is the most important factor. ‘Market’ means people who have a demand for these goods and also have the purchasing power to buy them from sellers at a place. Remote areas inhabited by few people offer small markets. The developed regions of Europe, North America, Japan, and Australia provide large global markets because the purchasing power of their people is very high. The densely populated regions of South and Southeast Asia also provide large markets. Some industries, such as aircraft manufacturing and the arms industry, have global markets.

Access to Raw Material

Raw materials used by industries should be cheap and easy to transport. Industries based on cheap, bulky, and weight-losing materials (ores) are located close to the source of raw material — for example, steel, sugar, and cement industries. Perishability is a vital factor: agro-processing and dairy products are processed close to the sources of farm produce or milk supply, respectively.

Access to Labour Supply

Labour supply is an important factor. Some types of manufacturing still require skilled labour. However, increasing mechanisation, automation, and flexibility of industrial processes have reduced the dependence of industry on labour.

Access to Sources of Energy

Industries that use more power are located close to the source of energy supply — for example, the aluminium industry. Earlier, coal was the main source of energy; today, hydroelectricity and petroleum are also important sources for many industries.

Access to Transportation and Communication Facilities …