Library Geography 0460 Industry
O Level · Geography 0460

Industry

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  Cambridge (CIE) IGCSE Geography

Industry

The Big Idea: Every factory is a system — it sucks in inputs (raw materials, labour, energy), does processes to them, and spits out outputs (products, waste) — and companies choose where to build that factory based on whatever combination of location factors gives them the lowest costs and the highest profit.
SummaryEverything in this chapter, at a glance
  • Industrial systems = Inputs → Processes → Outputs, and outputs include finished products, by-products, part-products, and waste.
  • Manufacturing is either heavy (big, bulky, huge-scale — e.g. iron & steel) or light (small, precise — e.g. phone assembly).
  • The four sectors of the economy — primary, secondary, tertiary, quaternary — are interlinked; one product (like cotton clothing) passes through several of them.
  • High-tech industry is the fastest-growing industry type worldwide, relies on constant R&D, and clusters in science parks.
  • Where a factory locates depends on a mix of physical factors (raw materials, site, climate, water, energy, routeways) and human/economic factors (capital, markets, government, transport, communications, labour, quality of life).
  • No single factor decides location — it's always the least-cost, highest-profit combination (the "optimum location").
  • Industry and its location change over time — raw materials run out, costs rise, technology and outsourcing shift where work happens.
  • Countries can be classified as pre-industrial (mostly primary sector, e.g. Bolivia, Mozambique), industrial (mostly secondary, e.g. China, India), or post-industrial (mostly tertiary/quaternary, e.g. UK, USA).
  • Case study: Pakistan's Iron & Steel Industry at Pipri — a textbook example of how inputs, processes, outputs and impacts all link to a real location.
1. Industrial SystemsInputs → Processes → Outputs

The Basic Model

Think of any factory as a black box. Stuff goes in one side, something happens inside, and different stuff comes out the other side. Geographers break this into three stages:

  • Inputs — the basic ingredients needed just to start the process: raw materials, labour, energy, capital (money), land, buildings, water, even internet access.
  • Processes — the actual work done to transform those inputs: cutting, sewing, welding, brewing, painting, moulding, etc. This is the "magic" step where raw stuff becomes a product.
  • Outputs — everything that comes out the other end. Note this is not just the finished product — outputs include four different things (see below).
INPUTS PROCESSES OUTPUTS ───────────── ───────────── ───────────── Raw materials → Cutting → Finished product Labour → Welding → By-product Energy → Brewing → Part product Capital → Painting → Waste Land / Buildings → Moulding Water / Internet
Key Rule Outputs are not just "the product." There are FOUR kinds of output: (1) finished product, (2) by-product (a useful extra, e.g. Marmite from beer brewing), (3) part/continued product (something that gets processed further elsewhere, e.g. woven cotton sent off to be made into clothes), and (4) waste (has no value, but still costs money to dispose of).
🍋 Quick way to remember it IPO — Inputs, Processes, Outputs. Say it like a company "IPO" (going public) — except here it's a factory "going public" with its product!
Practice Question

A brewery makes beer. Marmite is made as a side-product from the yeast left over. Which type of output is the Marmite, and why?

Heavy vs Light Industry

Manufacturing industries are classified by the scale and bulk of what they handle:

  • Heavy industry — uses large, bulky raw materials on a huge scale, and produces big, heavy items. Classic example: iron and steel manufacturing. Heavy industry usually needs to be sited very close to its raw materials because they're expensive and difficult to transport.
  • Light industry — smaller-scale, often more precise or delicate work: computer manufacturing, smartphone assembly, clothing, microbrewing. Light industry has much more freedom about where it locates, because its inputs and outputs are small and easy to move (or even weightless, like data).
💧 Think of it this way Heavy industry = heavy inputs AND heavy outputs (tonnes of iron ore in, tonnes of steel out). Light industry = small, often high-value inputs and outputs (a few grams of silicon chip in, one smartphone out). This is exactly why steel plants sit next to ports, but a phone-assembly plant can sit almost anywhere with good transport links.

Case Examples: Steel & Iron Production

The textbook gives two closely-related worked examples that show the IPO model applied to real heavy industry. Notice how similar inputs (ore, alloys) go through different processes to make different products — and both create serious environmental impacts.

StageSpecialised Steel ProductionIron Production
InputAlloys such as chromium and cobaltIron ore, coke, limestone (to remove impurities), water, recycled scrap iron
ProcessesElectric arc furnace, oxygen furnace, rolling and cuttingBlast furnace to melt the ore, coke oven, rolling into sheets, cutting into lengths
OutputSteel slabs, ingots, sheets, waste, slag, gasesCast iron, pig iron, slag, sulphur dioxide, carbon dioxide, hydrogen sulphide, water, heat
ImpactNoise, dust, air pollution, smell, water pollutionLarge buildings, noise, air pollution, smell, water pollution, contaminated cooling water, scrubber waste, fire/explosion risk
🌸 Common Mistake Students often forget that gases (like sulphur dioxide and carbon dioxide) count as outputs too, not just the physical steel or iron. In an exam, if asked "list the outputs," missing the pollutant gases will cost you marks — waste isn't only solid rubbish.
Practice Question

Explain why the sectors of industry are described as "interrelated" using the cotton example (primary → secondary → secondary → tertiary → quaternary).

The Four Economic Sectors

Every job in an economy fits into one of four sectors, based on how far that job is from directly using natural resources:

SectorWhat it involvesExample (from worked example)
PrimaryExtracting raw materials directly from natureGrowing and picking cotton
SecondaryManufacturing / processing raw materials into productsPeople operating machines in a factory
TertiaryProviding a service, often selling or moving the productDrivers of lorries transporting products from a factory
QuaternaryResearch, knowledge, and information-based workWorkers who carry out research to design new machines
Exam-ready phrasing Primary = taking from nature. Secondary = making something from it. Tertiary = selling/serving it to people. Quaternary = thinking about how to do all of the above better.

High-Tech Industry

High-tech industry is singled out because it's the fastest-growing industry type in the world. It covers things like precision instrumentation, pharmaceuticals, biotechnology, mobile phones, and vaccines.

  • Most MEDCs (More Economically Developed Countries) and NICs (Newly Industrialised Countries) have at least one hub of high-tech industry.
  • It depends heavily on research and development (R&D) to stay ahead of competitors — this is what keeps it "high-tech."
  • Manufacturing is mostly computer-automated, meaning fewer workers are needed on the factory floor compared to traditional heavy industry.
🌿 Link this forward High-tech industry connects directly to the next big topic — where it locates (science parks) — because R&D-heavy industries have very different location needs from a steelworks. Keep reading!
2. Distribution & Location of Industrial ZonesWhy factories end up where they do

The Big Picture: The "Optimum Location"

Every day, real companies have to make a genuinely difficult decision: where should we build this factory? Different industries need different inputs, and — crucially — they need those inputs to be readily available and cheap. A steelworks needs to be near iron ore; a science park needs to be near a university.

Most companies aren't just looking for the cheapest possible spot — they're looking for the optimum location: the spot that gives the maximum profit once you balance costs against benefits. This depends on a combination of physical, human and economic factors — never just one.

┌─────────────────┐ │ LOCATION FACTORS │ └─────────────────┘ ╱ │ │ │ ╲ Raw Transport Capital Markets New Tech Materials Links (Money) (Customers) ╲ │ │ │ ╱ Labour Cost of Energy Government (skilled/ Land Supply & Policy cheap) Amenities
Golden Rule to remember for every exam question "No one factor decides the location of an industry — it's a combination of factors, and most companies look for the LEAST cost with the HIGHEST profit location."

Physical Factors

  • Raw materials — heavy or bulky materials are expensive to transport, so industries needing them (like iron and steel) locate as close as possible to the source.
  • Site — large factories need flat, well-drained land, ideally with room to expand later, and the land needs to be affordable.
  • Climate — some industries (aerospace, film) benefit from sunny, stable weather. A good climate also cuts energy bills and boosts quality of life for workers.
  • Energy supply — energy-hungry industries may relocate to areas where power is cheap or plentiful.
  • Natural routeways — harbours, motorways, airports and railways give good access for both bringing inputs in and sending outputs out.
  • Water supplies — industries like paper-making and cotton processing use huge amounts of water and need to be near a reliable supply (lakes, rivers).

Human & Economic Factors

  • Capital — some areas naturally attract investment because expected returns are higher there.
  • Markets — the location and size of potential customers matters hugely for some industries (no point making fresh bread far from the people who'll buy it).
  • Government influence — incentives, grants and favourable policies can make an area attractive to investors.
  • Transport — transport is expensive, so being central to motorways, railways, ports and airports reduces costs significantly.
  • Communications — being able to reach customers and suppliers quickly (phone, internet, logistics) is vital.
  • Labour force — the quality and cost of workers, their reliability, mobility, turnover and reputation all matter.
  • Quality of life — highly skilled workers, especially in high-tech fields, will only move somewhere with a good work-life balance.
💜 Examiner Tip (from the notes) Remember, no one factor decides the location of an industry, but a combination of them — and most companies look for the least-cost location with the highest profit.
Practice Question

A retail park was built next to a main road, on flat land, with plenty of car parking and nearby housing. Suggest three reasons why this location was chosen. [3 marks]

High-Tech Industry: Where It Locates

High-tech companies (R&D, aerospace, weapons guidance systems, medical robotics, software, computer hardware) don't locate like heavy industry does. Instead they cluster together in purpose-built science parks, which are typically:

  • Close to a university or research centre (for knowledge and skilled graduates), with good security systems.
  • Purpose-built to encourage R&D and other quaternary activities.
  • Close to transport networks (including airports) to allow international knowledge transfer.
  • Further away from housing estates and retail parks, to reduce sound, air and visual pollution for both sides.
🍋 Case Example to quote in exams Southampton Science Park (UK) — in a prime location close to the London M3 motorway, the 17-hectare park offers high-quality office and lab space in landscaped surroundings. Over 60 high-tech research companies sit side by side, and it draws people in through its location, quality surroundings, and closeness to scientific talent at the University of Southampton.
Practice Question

Why do science parks tend to locate near universities rather than near motorway service stations or town centres?

Changes to Manufacturing & Location Over Time

Industrial location isn't fixed forever — it shifts as economies develop. Key drivers of change:

  • Raw materials — sources run out over time, so manufacturers move in response; improved infrastructure also means businesses are no longer tied to old energy centres like coalfields.
  • Rising costs — wages, laws and regulations push costs up in MICs (More Industrialised Countries), so manufacturing work moves elsewhere to cheaper locations.
  • Transport — commuting and migrating have become easier as there are now fewer barriers to travel.
  • Competition — fewer people are needed to do the same work now (e.g. banking increasingly relies on ICT rather than staff).
  • Technology — advances in ICT allow more work from home and easier air travel, loosening the link between workers and a fixed office location.
  • Outsourcing — companies send work elsewhere (e.g. call centres) to save money.
Three-Stage Development Model Pre-industrial societies (e.g. Bolivia, Mozambique) — most people work in the primary sector.
Industrial societies (e.g. China, India) — many people work in the secondary sector.
Post-industrial societies (e.g. UK, USA) — most people work in the tertiary or quaternary sectors.
💧 Why this matters for exams This is the "employment structure" idea — as a country develops economically, its workforce shifts from primary → secondary → tertiary/quaternary. If you're given a pie chart of a country's employment by sector, you should be able to say instantly whether it's pre-industrial, industrial, or post-industrial.
3. Case StudyPakistan's Iron & Steel Industry — Pipri

Location

  • Sited at Pipri, near Gharo Creek — flat, cheap land close to Port Qasim, which has a natural harbour for importing raw materials and exporting finished steel.
  • Close to its market: steel-using industries in Karachi, such as tool-making.
  • Located along a railway (Karachi–Pipri–Kotri) and a metalled road for internal distribution.
🌿 Spot the pattern Notice how this location ticks almost every physical AND human/economic factor from earlier in the chapter: flat cheap land (site), a natural harbour (routeway), nearby market (Karachi), and rail/road links (transport). This is exactly why case studies are so useful — they let you apply the theory to a real place.

Inputs, Processes, Output & Impact

StageDetails
InputsIron ore, coke, limestone, scrap iron, water from Lake Haleji, economic assistance from Russia (technical expertise and capital), cheap labour from Karachi, energy from Pipri thermal power station and Karachi nuclear power station
ProcessesHeating of ore to separate iron, burning coke, rolling into sheets and cutting into lengths
OutputCast iron and pig iron, slag, gases (sulphur dioxide, carbon dioxide, nitrous oxide, hydrogen sulphide)
ImpactNoise pollution from machinery, visual pollution from large ugly buildings, air pollution from burning ore, water pollution from contaminated cooling water/scrubber effluent/supply ships, depleted fresh water supplies, risk of fire and explosions
Practice Question

Using the Pakistan case study, explain how the choice of location at Pipri reduced transport costs for both inputs and outputs. [4 marks]

What to MemoriseYour quick-fire reference before the exam
TermDefinition
InputsBasic items needed to begin an industrial process: raw materials, labour, energy, capital, land, buildings, water, internet.
ProcessesThe activities that take place to turn inputs into a finished product, e.g. cutting, welding, brewing, moulding.
OutputsEverything that leaves the system: finished products, by-products, part-products (for continued manufacturing elsewhere), and waste.
Heavy industryUses large, bulky raw materials on a huge scale to produce big items, e.g. iron and steel.
Light industrySmaller-scale, often precise manufacturing, e.g. computers, smartphones, clothing, microbrewing.
Primary sectorExtracting raw materials directly from nature (farming, mining, fishing).
Secondary sectorManufacturing / processing raw materials into products.
Tertiary sectorProviding services, including selling and transporting goods.
Quaternary sectorResearch and information-based, knowledge-driven work.
High-tech industryFastest-growing industry type; research-heavy, computer-automated, produces things like pharmaceuticals and mobile phones.
Science parkPurpose-built cluster of high-tech firms, usually near a university, designed to encourage R&D.
Optimum locationThe site that gives an industry the maximum profit once all costs and benefits are weighed up.
Pre-industrial societyMost workers employed in the primary sector, e.g. Bolivia, Mozambique.
Industrial societyMany workers employed in the secondary sector, e.g. China, India.
Post-industrial societyMost workers employed in tertiary/quaternary sectors, e.g. UK, USA.
IPO Model 4 Sectors Physical Factors Human/Economic Factors Science Parks Pakistan Steel Case Study
Concepts ChecklistTick off what you're confident on
Exam TipsWhere students lose marks, and how examiners think
🌸 Don't forget waste and gases as outputs When asked to "identify the outputs" of an industrial process, students often only list the finished product. Always check for by-products, part-products, AND waste/pollutant gases — examiners specifically credit these.
🍋 Never give just ONE location factor If a question asks "why did this industry locate here?", always aim for a combination of factors (e.g. raw materials + transport + labour), not a single reason. The mark scheme almost always rewards a "combination of factors" answer over a one-factor answer.
🌿 Use real case study detail Generic answers score lower than specific ones. Instead of "it's near water," say "it's near Port Qasim's natural harbour, which allows iron ore to be imported and steel exported cheaply." Named places, named features, and specific processes earn top-band marks.
💧 Know your sector definitions cold A classic exam trap is a "trick" job that sounds tertiary but is secondary (or vice versa) — e.g. someone operating machinery in a factory is SECONDARY (they're making the product), not tertiary, even though it might sound like a "service" job at first glance.
💜 Physical vs Human/Economic — keep them separate Examiners sometimes specifically ask for "physical factors only" or "human factors only." Make sure you can sort raw materials, site, climate, energy, routeways and water into "physical," and capital, markets, government, transport, communications, labour and quality of life into "human/economic."
🌸 "No one factor" is the safest closing line For any location-based extended answer, finishing with "ultimately, no single factor determines location — companies weigh multiple factors to find the location offering least cost and highest profit" is a strong, examiner-approved way to conclude.
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Also in the full note
  • Case Examples: Steel & Iron Production
  • Human & Economic Factors
  • Changes to Manufacturing & Location Over Time
  • Inputs, Processes, Output & Impact
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