Industrial Management: Meaning, Definition, Objective, Need, Scope, Evolution and developments. Productivity: Definition of productivity, Measurement of productivity, factors affecting the productivity, productivity improvement programs.

1. Primary vs Secondary vs Tertiary Industries

2. • An economic activity dealing with the collecting or making available
of naturally occurring material
• Eg. Processing of mineral, agricultural & forest raw materials

3. • An economic activity in which raw materials provided by
the primary industry are transformed into something
more directly useful to people.
• Normally the main force behind economic development
of a country.
• The level of technology determines the number of people
employed and the types of outputs of secondary industries

4. • An economic activity in which services are provided to the
primary and secondary industries, to the community and to the
individual.
• Tertiary industries involve the provision of goods and
services. Eg. Transport, retailing.
• In developed countries, a large number of people are
employed in tertiary industries.

5. • High-tech industries are based on research, development and
innovations.
• To identify whether an industry is high or low tech, we can judge by
the amount spent on R & D.

6. • Difference between the cost of manufacturing inputs and the value of the finished
products
• An industry with low production costs and high value value finished products is
a high value-added industry.
• Eg. Electronics, Aerospace etc.

7. • Labour intensive refer to activities that employ a large number of
workers per unit of output
• Capital intensive refers to activities that utilise machinery and have
fewer workers per unit of output

8. • Light industry involves the production of goods that are light
in weight, high in value. Eg. Garment factories
• Heavy industry involves the production of goods from large
quantities of often bulky and heavy raw materials. Eg. Iron
and Steel industry.
Where are the light and heavy industries located in India?

9. • Industries are in constant state of change.
• New technology and changes in market demands can all lead to a shift in the types
of industries in a country.

11. Industrial Geography:
1. Classification of Industry

32. Reporting

34. Industrial Geography:
1. Classification of Industry

35. • As you will remember from Standard Grade we divide Industry
into 4 main groups:
• Primary
• Secondary
• Tertiary
• Quaternary
Look at the following pictures and in your groups, create
definitions for these 4 types of Industry.

40. • Primary industries involve the sourcing of raw materials
• Secondary economic activity involves taking raw materials
from a primary industry and turning them into manufactured
goods or products
• Tertiary industries or the service sector involves the provision
of services
• Quaternary industry involves activities such as training and
research and development e.g. high technology and information
services

41. • All categories of industry operate as systems based on inputs,
processes and outputs
Inputs Processes Outputs

42. • Why are Location factors important?
• Physical Factors affecting the location of industry
• Human and Economic Factors affecting the location of Industry

43. • Raw Materials: the bulkier and heavier these are to transport, the nearer
the factory should be located to raw materials. This was very important
when communication links were less developed.
• Power: Early industry needed to be sited near to fast flowing rivers,
woodlands or coal reserves

44. • Natural Routes:
River valleys and flat areas were essential in the past when transport
was poor but even today industry tends to favour these areas
• Site and Land:
This ideally should be cheap, poor quality farmland with room to expand

45. • Labour: All industries need labour. Industry is not just
concerned with locating near a supply of workers but with the
level of skills of those workers
• Capital: Early industry depended on investment from wealthy
entrepreneurs and tended to locate near the investors,
nowadays investment comes through banks and Governments.

46. • Markets: The size and location of markets has become a more
important factor than the source of raw materials. Historically
the British Empire was an essential market for British Firms

47. • Transport: Costs increase when items moved are bulky, fragile,
perishable or heavy
• Government and EU Policy: Companies can be attracted to areas
by a range of grants, subsidies, rent-free accommodation and other
financial incentives

49. • The land was cheap and the valley floors were flat and easy to build on.
• Coal and Iron Ore were easily found in horizontal seams.
• They were close to the surface, making them easy to mine.
• Limestone was located a few kilometres North in the Brecon Beacons.

50. • Workers flocked to the area, due to the large amount of
available jobs. They mainly came from rural areas where they
had lost their jobs due to machines replacing them.

51. • The main market for Welsh exports was to The British Empire, which provided a guaranteed market for Welsh
Iron and Coal. Any large scale projects undertaken in the Empire imported goods from factories at “home”
meaning they could not be undercut by local businesses in the colonies

52. • A docks was built in Cardiff to export the coal from.

53. • Towns and cities in the UK were growing and they needed coal to power the
factories and also to heat homes.
• Coal was also needed in large quantities in the newly expanding
railway system.

54. • Canals and later Railways were
built on the flat valley floor,
making transport of the raw
material easier.

56. • However this landscape was to change dramatically over the next 50
years
• In 2010 the Welsh Valleys are almost unrecognisable from those at the
turn of the 20th Century as traditional industries have crumbled
* Watch “Britain from Above” DVD*

57. The rapid industrialisation and urbanisation of South Wales changed a
tranquil rural landscape into a maze of tight streets and smoke bellowing
factories
Often the fire from the Ironworks would give the illusion the Valleys were on
fire as so much of the available land was taken up by Industry

60. Thus began the spread of
the well known industrial
landscape of the Valleys.
Pits crammed themselves
into the narrow valley
bottoms, vying for space
with canals, housing and
later railways and roads.
Housing began to trail up
the valley sides, line upon
line of terraces pressed
against the slopes.

61. The opening up of the
underground coal seams
resulted in massive
immigration, much of it from
rural areas. Working, living
conditions and wages were
deplorable while conditions
underground were poor.
Housing was overcrowded
as their provision lagged
behind the supply of jobs

62. Industrial Decline
(1940→1990)

63. • Iron Ore and Limestone has run out
• Coal is running out and is becoming more difficult and expensive
to mine as the coal seams get thinner. This means machines can no
longer be used.
• The coal seams are more faulted making it more expensive to dig out.
• No demand for coal to be used in steam trains
• Houses no longer used coal to heat them
• Iron and steel could be made cheaper abroad

64. • Ship building lost a local source of steel and closed down
• The demand for coal and iron from overseas drops dramatically as the breakup of the British
Empire removes the guaranteed market
• Hydro, gas and nuclear were increasingly used as a power source in power stations.
• Car transport does not require coal as a power source.

65. 0
50
100
150
200
250
300
350
400
450
500
1925 1981 2000
number of
colleries
number of
miners
('000s)

69. / alcohol and drug abuse
increases
/Bus services and shops close down
Young people leave the area. Older
people and young families are left

70. • Need to retrain staff
• Workers accept lower paid, part time work
• Workers need to move to where the work is (New Steelworks at
the coast)
• No investment and areas became run down
• Increased crime
• Increased poverty
• Alcoholism
• Government Grants, Skilled workers, Good transport links and a
close market have attracted new industry to the region

71. New Industrial
Growth
(1990→)

72. • New Industrial Estates were built
next to motorways as good
access was essential for cheaply
importing raw materials and
distributing their finished goods.
• The new road system also
meant the labour force could get
there easily.

73. • Firms, both British and Foreign were attracted to the older industrial areas
of South Wales by the offer of financial incentives made available by the
Government. Enterprise Zones were created which were areas where
companies can locate free of local taxes.

74. • The Government also moved Government owned business to
South Wales to help stimulate economic growth.
• The Royal Mint moved to South Wales in the 1960s whilst more
recently the DVLA moved to Swansea.

75. • Firms, both British and Foreign were
attracted to the older industrial areas of
South Wales by the offer of financial
incentives made available by the
Government. Enterprise Zones were
created which were areas where
companies can locate free of local taxes.

76. • There was a readily
available workforce.
• Excellent access to
international markets
in the EU

77. • Incentives included:
• Rent free accommodation
• Grants for new machinery
• Subsidies to assist with labour costs
• Grants to help with retraining schemes
• Tax incentives to encourage foreign
investment

78. •BBC film studios
• Independent film studios
• Admiral Insurance
• Legal and General
• Honda