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A look at the manufacturing industry and why factories are located in specific geographic regions.
Ever wondered why a chocolate bar isn't usually made right next to a cocoa farm in Ghana, but a brick factory is almost always located right next to a clay pit?
The secondary sector involves taking raw materials from the primary sector (like iron ore or timber) and processing them into finished goods. This process is known as manufacturing. The core goal of any factory is to create value-added products. For example, a block of raw aluminum might be worth , but when manufactured into a high-performance bicycle frame, it might be worth . The difference of represents the value added through labor, technology, and design. Because manufacturing requires massive investments in machinery and energy, choosing the right location is the most important decision a company makes to ensure they don't lose their profit to transportation costs.
Quick Check
What is the primary goal of the manufacturing process in terms of the product's worth?
Answer
To create 'value-added' products, where the finished good is worth significantly more than the raw materials used.
1. A company has a concentrated syrup that is light and easy to ship. 2. However, the final product (soda) is mostly water, which is heavy and expensive to move. 3. To minimize costs, the company ships the light syrup to a bottling plant located in a city near the customers. 4. They add local water and bottles at that site, minimizing the distance the heavy finished product must travel.
Quick Check
If a factory processes heavy timber into lightweight paper, should it be located near the forest or the city?
Answer
Near the forest, because it is a weight-losing industry.
Factories rarely exist in isolation. They often cluster in industrial hubs due to agglomeration—the benefit businesses get by being near each other. By clustering, factories can share specialized infrastructure like high-capacity power lines, deep-water ports, and a skilled labor pool. Governments often encourage this by creating Special Economic Zones (SEZs). These are specific areas with different business laws and lower taxes. For example, Shenzhen, China, transformed from a fishing village into a global electronics hub because the government provided the infrastructure and incentives for thousands of tech factories to cluster together.
1. A car factory in Germany needs different parts. 2. Instead of building everything in-house, they rely on smaller 'tier-one' suppliers located within a -mile radius. 3. These suppliers deliver parts exactly when needed (Just-in-Time manufacturing). 4. This reduces storage costs and allows the main factory to focus purely on final assembly, demonstrating the power of industrial clustering.
Imagine a factory choosing between two sites. Site A is near the raw material ( km) but far from the market ( km). Site B is far from the material ( km) but near the market ( km). If the raw material weighs tons and the finished product weighs ton: 1. Site A Transport Cost: . 2. Site B Transport Cost: . Conclusion: Site A is the mathematically superior choice.
Which of the following is the best example of a 'weight-gaining' industry?
What is the term for the benefits businesses receive by clustering together in the same geographic area?
A Special Economic Zone (SEZ) usually has the same tax laws and regulations as the rest of the country.
Review Tomorrow
In 24 hours, try to explain the difference between a weight-losing and weight-gaining industry to a friend, using the example of a soda bottle and a steel beam.
Practice Activity
Look at three items in your room. Check the 'Made In' labels. Research if those countries have Special Economic Zones (SEZs) that might have influenced where those items were manufactured.