- Introduction
- Factors Influencing Location and Development of Industries
- Types/Classification of Industries
- Distribution of Industries in Kenya
- Significance of Industrialization to Kenya
- Problems of Industrialization
- Possible Solutions to the Problems of Industrialization
- Cottage Industries in India
- Iron and Steel Industry in the Ruhr region of Germany
- Car Manufacturing and Electronics Industry in Japan
Introduction
- Industry - any form of economic activity through which people produce goods and services for their consumption.
- Industrilisation - process through which a country establishes manufatcuring industries. A country is referred to as industrialised when production of manufactured goods is the main economic activity in that country. Less industrialised countries mainly produce agricultural raw materials.
Factors Influencing Location and Development of Industries
- Raw Materials
- Industries are located near sources of raw materials to reduce transportation costs e.g. sugar milling factories in sugar growing areas, mostly in urban areas near airports and oil refineries at the coast since oil is expensive and bulky to transport inland
- They are also established where there is a steady source of raw materials in order for them to be economically viable e.g. oil refineries at the coast. - Power
- Industries are not necessarily located near areas where power is produced
- They tend to be established in areas where power is cheap to supply
- The further the industry is from the main supply point, the more expensive it becomes to transmit power E.g. Jinja town is loacted near Owen falls dam. - Transport and Communication
- They are located where transportation system is well established to ensure efficient and quick transportation of raw materials to industries and finished goods to the market e.g. in urban centres
- They are located where there is efficient communication so as to stay in touch with their suppliers and their consumers. Well developed communication systems also lower tansport cost. - Market
- They are located where buyers of products are available or in areas with dense population to make their opeartion to be economically viable since they are establsihed for commercial purposes to make a profit e.g. in urban areas, Kenya highlands, lake region and coastal strip
- Location near markets is also due to the nature of goods e.g. perishable goods have to be consumed before they go bad e.g. bread and dairy products. Industri4es making frgile goods are located near markets to prevent the high risk of breakage during transportation e.g. glass,bricks, and roofing tiles - Labour
- Labour intensive industries are located in densely populated areas where there is adequate and cheap labour to reduce production costs.
- Also so as to reduce the cost of transporting and housing workers
- A country with skilled manpower has a faster industrial growth than that without which are forced to depejnd on expatriates who ate costly to hire and maintan which lowers the profits of such industries
- Industries also require skilled manpower and management skills to ensure macimum output and ow production costs. - Water Supply
- Industries use a considerable amount of water
- Some are located near sources of water such as large permanent rivers and lakes to provide water for processing raw materials e.g. coffee pulping, sugar milling e.g. Mumias R. Nzoia, Sony near R. Migori and Chemelil near R. Nyando. - Government Policy
- Decentralization is location of industries from urban to rural areas. This can be encouraged by providing incentives,
Examples of incentives include- Tax exemptions
- Protection from foreign competition
Aims of Decentralization- Develop all parts
- Create jobs in rural areas to minimize rural-urban migration
- Take industries where labour is found
- Open remote or underdeveloped areas for development
- To reduce congestion in the capital city
- Environmental reasons whereby industries are located away from residential areas because they can produce harmful fumes and a lot of noise
- Security reasons to prevent industries from being attacked by terrorists if they were all located together, there would be a great loss. E.g. EPZ industries located at Athi river to reduce congestion in Nairobi industrial area and Mariakani and Kikuyu Steel Rolling Mills established their respective areas to open up the region for development.
- Industrial Inertia
-This is the tendency of an industry to remain in a particular place even when the factors for its location no longer exist e.g. industries in the Ruhr Region of Germany have remained at the same place despite closure of coal fields and decline in coal as an energy source.
Causes
- It may be expensive to move to a new place because new factory buildings would have to be constructed, buying new machinery and equipment.
- Due to availability of experienced workers
- To avoid the problem of transportation and other basic infrastructural facilities. - Capital
- A lot of capital is required in establishing and developing an industry e.g. for purchasing land, putting up building and purchasing machinery and equipment
- Countries with plenty of capital industrialize with greater ease than those with little capital which often rely on foreign aid and multinational corporations to setup domestic industries which reduces benefits accruing from such industries - Personal Decisions
- Industrialists may overlook the economic factor and chose to establish an industry at their place of choice.
- Their choice may depend on several factors which include
- Security to allow secure operations
- Where they can get maximum benefits
- To set industries in their home areas to offer jobs to their local people.
- The Cost of Land
- A place where land is expensive discourages industrial development e.g. industries are now being established in the neighbouring towns of Kitengela, Ruiru and Athi River because land is expensive in Nairobi
Types/Classification of Industries
- Industries can be classified according to Raw Materials Used, Products and Level of Production
Primary/Processing Industries
- Industries involved in the exploitation of natural resources (e.g. mining, fishing, forestry and agriculture) or processing raw materials into more useful and valuable form which are used in making final products e.g. coffee pulp factories, cotton ginneries, milk dairies, sugar factories, saw mills, abattoirs, leather tanneries, posho mills and sisal factories.
Secondary/Manufacturing Industries
- Ones which rely on processed goods to make final products or which make final products directly from raw materials e.g. sweet industries, bread, cement factories, oil refineries, cigarette making, pulp and paper industries, etc.
- Some secondary industries use raw materials directly to make final products E.g. crude oil.
Tertiary/Service Industries
- Industries involved in providing services and don't produce tangible goods e.g. transport and communication, trade, banking, tourism, administration, education, medical etc.
- They distribute commodities that have been produced in the primary and secondary industry to the consumers.
Distribution of Industries in Kenya
Agricultural Industries
- Agricultural Food Processing Industries
- Located where raw materials are produced because they require immediate processing e.g. tea factories, sugar factories, milk processing plants in the leading dairy farming regions e.g. Eldoret, Nakuru and Kiganjo, coffee factories in coffee growing areas e.g. Kiambu, Nyeri, Embu, fruit canning e.g. Del Monte in Thika and Kenya Orchards Company in Mua Hills in Machakos, Maize milling e.g. Unga Ltd in Eldoret, Kisumu and Nairobi, Brewing industries e.g. East African Breweries at Ruaraka, KMC plants at Athi River, etc. - Agricultural Non-Food Processing Industries
- Cotton ginneries, sisal factories, Bata Shoe Company in Limuru, cigarette making e.g. mastermind and BAT, Lumbering industries e.g. Pan African Paper Mills in Webuye near extensive pine plantations in Turbo and Webuye, textile industry e.g. Kisumu Cotton Mills in growing areas of W. Kenya.
Non - Agricultural Manufacturing Industries
- Many are located urban areas where there is a large market, reliable power supply and adequate labour force e.g. cement factories at Athi River and Bamburi, Oil refining at Changamwe in Mombasa, steel rolling mills in the industrial area of Nairobi where crap metal is available, Central glass company at Kasarani, clay products industries near Ruiru and Githunguri near sources of clay, Vehicle Assembling industries which import car components and join them to make cars e.g. General Motors in Nairobi and Associated Vehicle Assemblers in Mombasa, pharamceutical industries which manufacture medical products e.g. Glaxo Smithkline and Beta Health Care in Nairobi
Cottage Industries
- Industries involved in making products used particularly in homes using hands and simple tools.
Characteristics
- Locally available materials are used.
- Capital invested is small
- Most products are sold to the local market but few are exported.
- Skills are acquired informally
- Use of hands and simple and sometimes advanced tools
- Usually involve an art or skill possessed by a person to produce items that are in demand in the neighbourhood.
- It's labour intensive
- Very few items are made because the market for items is usually small.
Examples of Cottage Industries
- Pottery
- Cottage industry in which pots and flower vases are made using clay
- It is practised mainly in eastern and central provinces and by women
- Examples of areas are Kwale and Muranga - Wood and Stone Carving
- Involves curving of wood and stone into various shapes of animals, humans etc.
- Wood carving is practised in Kitui and Machakos while soapstone (Soft metamorphic rock) carving is done in Kisii
- wood carvers have formed a cooperative society to market their goods
- Some products are sold locally while the rest are exported with some being bought by tourists as souvenirs (reminder) - Weaving
- Involves using sisal, dry palm leaves, dry papyrus, nylon fibres etc. to make products such as baskets, mats, and fish traps etc.
- The items made differ from one region to another
- Baskets mainly known as Ciondos are mainly done by Agikuyu women are sold locally and to tourists
- Weaving is also practices along the coastal region where dry palm leaves are used to make baskets, mats, etc.
Other cottage industires are such as those making use of scrap metal to make metal boxes, wheel barrows, energy saving jikos, rain harvesting gutters, poultry harvesting equipment, swords, knives, spears, jembes, iron bells and jingles and boat making common among communities living around L. Victoria and along the coast.
Jua Kali Industries
- The most common and popular cottage industry
- Jua Kali practitioners include those who are employed in all informal sectors of the economy such as shoe repairers, tailors, carpenters, watch repairers, barbers, mechanics, and tyre-menders
- Jua Kali industries are found in all urban centres
- The most common activity is reprocessing old scrap metal to produce useful products listed above.
Ways in which the government is encouraging Jua Kali Industries
- The ministry of trade and industry has set up a department to promote this industry
- KIE provides loans to Jua Kali industry for the purchase of materials
- KIE has put permanent structures/sheds where the artisans can operate at low costs
- The local authorities have set aside land for use by Jua Kali artisans
- Jua Kali artisans have been encouraged to form cooperatives to assist in the marketing of their products
Importance of the Jua Kali sector
- Has created employment opportunities to many people who would otherwise be jobless offering them a means of livelihood, alleviating poverty
- It has helped to raise the standard of living of many Kenyans who rely on it for income
- It utilizes materials that would otherwise be thrown away to make items
- Jua Kali products earn the country substantial foreign exchange when they are exported to COMESA countries
- The Industry produces cheaper goods that those produced in the formal industries.
Significance of Industrialization to Kenya
- Kenya earns foreign exchange after exporting her manufactured goods which is used to develop other sectors of the economy such as education, health care and transport.
- Industries employ people providing them with income which helps to raise their standard of living
- Industrialization has led to development of transport and communication and social amenities such as power, water, schools and medical facilities where industries have been established
- Agricultural based industries have led to increased agricultural production in the process of meeting the rising demand for raw materials
- Establishment of industries has led to the diversification of the economy thereby helping the country to earn revenue throughout even when agriculture which is the backbone of the economy fails as a result of adverse weather conditions
- Industrial exports help in maintaining a balance of trade between Kenya and her trading partners by reducing over reliance on imports
- Industrial exports to other countries create a trading cooperation which in turn helps to foster good relationships among countries of the world
- Industries based on locally available materials encourage utilization of resources which could otherwise be idle
- Establishment of industries promote development of urban centres because it encourages people to move to the area in search of jobs and accommodation and other services provided
- Industrialized countries are likely to produce adequate goods making them to be self-sufficient in industrial goods.
Problems of Industrialization
- Kenya lacks adequate capital for industrial establishment forcing her to get loans from financial institutions such as IMF and World Bank whose interest rates are very high and sometimes come with strings attached.
- Industries suffer from the problem of raw materials e.g. agricultural industries when agriculture fails due to adverse weather conditions. Timber industry suffers due to trees taking long time to mature and those depending on imported raw materials suffer when strict exchange control are put in place
- Local market for industrial goods isn't sufficient to sustain production due to low purchasing power, the cost of manufactured goods being too high due to the high cost of raw materials and the preference of some people to buy imported products thinking they are of better quality
- Lack of skilled labour due to brain drain forcing the government to employ expatriates whose salary package is very high thus lowering the profits. It may also lead to poor management leading to losses and eventual close down of some industries
- Locally produced goods compete with imported goods which are in most cases cheaper leading to the decline or death of local industries. For instance, the importation of 2nd hand clothes which has led to the decline of textile industry.
- There is the problem of the high cost of energy due to importation of petroleum at very high cost causing the industrial costs to tremendously increase thus affecting the marketability of the products as they become unaffordable
- Industries cause environmental degradation e.g. pollution from the emissions they release into the air and effluents they release into water bodies has led to global warming and water pollution leading to death of fish
- Industries such as cement manufacturing make land derelict by depositing rock wastes on the ground
Possible Solutions to the Problems of Industrialization
- The government to give incentives such as tax exemptions to investors in order to establish industries
- Local financial institutions should assist by giving long term loans at affordable loans
- Supplementing local raw material with imported raw materials
- Planting more trees to increase raw materials required for timber related industries
- Government should explore market within regional trading like COMESA, EAC etc.
- It should also provide technical assistance to local manufacturers so that they produce of high quality in order to be able to compete favourably in the world market
- Government to lower tax on raw materials in order to reduce the prices of manufactured goods
- More people should be trained in respective fields to make up for shortage
- Improvement of salaries and working conditions to check brain drain
- Imposing heavy duties on imported products which are also produced locally.
- Improving the quality of locally manufactured goods so that they can compete favourably
- Eliminating corruption in the importation sector to ensure goods aren't imported illegally
- The problem can be reduced through strict legislation against dumping of industrial wastes and inspection of industrial activities to ensure wastes aren't released to the environment before treatment.
Cottage Industries in India
- Its labour force consist of people working at home with their own tools or simple machinery
- The major areas in which it is highly developed include Mumbai, Jbalpur, Magpur, Bhopal, Bhutan, Madras, Calcuta, Bangalore, Lucknow and Moradabad.
- The industry involves weaving, making clothes, brass, copper and silver ware, ornamental ivory, jewelry, carpets, safety matches etc.
Characteristics of Cottage Industry in India and their Comparison with Those in Kenya
- The cottage industries are rural based while in Kenya they are rural and urban based
- The craftsmen are highly skilled while in Kenya not all are highly skilled
- Labour in the industry is provided by individuals or members of the family while in Kenya it is individuals or members of groups.
- Industry is owned by the family in India while in Kenya it is owned by individuals
- In India cottage industries are found almost everywhere (ubiquitous) while in Kenya they are mostly in urban areas and some few homes
- There are middlemen who supply raw materials to the industry while in Kenya they obtain raw materials directly from their sources.
Factors for the Development of Cottage Industry in India
- The industry requires little capital outlay to establish
- Majority of Indians are very skilled weavers and ornamental ware makers.
- The high demand for products in the populous sub-continent has led to the development of the industry
- India has a huge population which ensures a steady supply of cheap labour
- The industries don't require big space so they can be established anywhere e.g. in homes and small rented rooms.
- Abundant supply of locally available raw materials which are used in cottage industry
- Availability of hydroelectric power which is well distributed within the rural towns
- The urge of people to earn an income in order to uplift their living standards
- Availability of simple and affordable tools and machines
Factors that Have Influenced the Growth of Cottage Industry in India
- The materials required for the cottage industries are locally available
- Ready market for the products provided by the high Indian population
- Abundant supply labour from the high Indian population
- Availability of power sources e.g. Hydro-electric power
- Establishing cottage industries does not require heavy capital outplay
- The Indian population is high skilled in producing items related to cottage industry
- Cottage industries do not require a lot of space and can even be started at homes or small rooms
Significance of Cottage Industry in India
- Creation of employment
- the industry is labour intensive and therefore provides employment to many people. This has raised their living standards - Utilization of local resources
- cottage industry uses locally available materials or recycles others that would have been wasted - Foreign exchange
- The industry earns foreign exchange through the sales to international markets - Declined rural-urban migration
- The industry is established in rural set ups and therefore helps to check the influx of people to urban areas - Manufacture of cheap products
- The industry produces cheap affordable products to meet the demands of low income earners.
Problems Faced by Cottage Industries in India
- Difficulty in obtaining raw materials at affordable prices
- Shortage of capital as most people are poor and have little access to modern banking facilities.
Solution - Artisans should form cooperatives through which they could get raw materials and loans - Competition from other industries making similar products
- Difficulties in making the products
- Exploitation of the artisans by the middlemen when they sell raw materials to them at high prices.
Solution - Government of India to introduce policy to stop the interference of the middlemen
Iron and Steel Industry in the Ruhr region of Germany
- Ruhr Region derives its name from R. Ruhr a tributary of R. Rhine.
- It is one of the most industrialized regions of the world. Other areas of the world which are highly industrialized are
- Pittsburgh industrial region of U.S.A.
- Moscow area of former Soviet Union
- Tokyo-Yokohama region of Japan
- S.E England in Britain and
- Rotterdam area in the Netherlands
- One of the leading industries deals in iron and steel which is one of the most important industries in the present advanced technological world as it provides raw materials to many other industries
- The basic raw materials are iron ore, coal and limestone mixed in the blast furnace to get iron
Factors Which Have Led to the Development of Iron and Steel Industry in the Ruhr Region of Germany
- There is availability of raw materials because the region has coal, iron ore and limestone making it economical to set up iron and steel industry there
- There is availability of cheap water transport for transportation of raw materials and finished products because the region is served by navigable rivers and canals e.g. R. Ruhr, Lippe, Dortmund-Ems Canal etc.
- There is availability of ready market for iron and steel from the dense and affluent population in C. and W. Europe
- There are abundant sources of power such as coal, oil and H.E.P. necessary in iron and steel industries
- There is availability of capital for development of iron and steel industry due to presence of rich companies, companies and capital accrued from other industries like coal.
- The region is centrally located in Europe which offers easy access to all parts of Europe.
Significance of Iron and Steel Industry in the Ruhr Industrial Region
- Led to the improvement of the transport network due to the need to transport raw materials and finished products related to iron and steel industry
- Led to growth and expansions of towns e.g. Essen, Dortmund and Duisburg
- Many people have been employed in the iron and steel industry as loaders, clerks, drivers and operators
- Has led to promotion of agriculture due to the need to feed the huge population in the industrial towns in the Ruhr region.
- Led to the provision of social amenities to crater for the workers in the industrial region e.g. schools, health centres, housing and recreational facilities
Problems Facing the Ruhr Industrial Region
- There is environmental pollution from the smoke and fumes from coal which is the major fuel and solid wastes which are discharged into the rivers
- There is congestion and overcrowding in housing and social amenities due to the large influx of people to the Ruhr region in search of employment
- Depletion of coal mines due to coal being a non-renewable resource and continued mining. Coal mining has become expensive as it has to be brought to the surface from great depths.
Car Manufacturing and Electronics Industry in Japan
- Japan is a country to the east of the continent of Asia made up of major/large and minor/small islands
Major Islands- Hokkaido
- Honshu
- Kyushu
- Shikoku
Minor Islands
- Okinawa
- Nancei
- Zu
- Kagoshima and
- Chisima
- 80% of the land consists of the rugged mountainous landscape which doesn't favour agriculture making the Japanese to concentrate on the development of manufacturing industries such as chemical, textile, iron and steel and automobiles (car manufacturing) and electronics which become very important.
- Examples of automobile companies include the Mitsubishi and Toyota Motor Corporations while examples of electronics companies include Sony and Toshiba.
Factors Favouring Electronics and Car Manufacturing in Japan
- Advanced technology e.g. all the plants dealing with electronics and automobiles are automated which increases efficiency leading to production of large number of units, lowers production costs and leads to production of high quality goods which are competitive in the world market.
- Cars and electronics manufactured in Japan aren't expensive compared those from European countries which makes them to be in high demand all over the world.
- 80% of the land consists of the rugged mountainous landscape which doesn't favour agriculture making the Japanese to concentrate on the development of manufacturing industries of which automobiles (car manufacturing) and electronics have become very important.
- Japan produces cars which are fuel efficient which creates a high demand for them in the world market encouraging the country to produce more.
- There is availability of a ready market due to Japanese high population with high purchasing power and high demand for Japanese cars and electronics due to their high quality, affordability and fuel efficiency of their automobiles in Africa, S. America, Asia and Europe.
- There is availability of capital from the profits accrued from other industries like ship building, machinery, textiles, fishing and tourism which are invested in the development of other industries including automobiles and electronics
- There is availability of skilled, dedicated and hardworking manpower in Japan which has led to production of quantitative and qualitative automobiles and electronics products which reduces production costs and makes goods to be of high demand which in turn stimulated more production
- Japan is located in a strategic position making it accessible from all directions via the seas enabling the raw materials and manufactured goods to be transported to or from any part of th world through the modern ports Tokyo, Nagoya and Osaka
- There is abundant water from the lakes, many rivers within the highlands and the Pacific Ocean surrounding Japan which is a pre-requisite in a manufacturing pant. It is used in the iron and steel industry whose products are in turn used in the automobile and electronics industry
Major Car Manufacturing Zones in Japan
- Tokyo-Yokohama Industrial Zone
- The most important and the leading motor vehicle manufacturing region
- Manufacturing cities in this region include Tokyo, Yokohama, Chiba and Hitachi (electronic products)
- Osaka-Kobe Industrial Zone
- 2nd most important car manufacturing zone
- It is located on Honshu Island
- Manufacturing cities in the region are Kobe, Osaka, Kyoto, Otsu, Wakayama and Akashi
- Nagoya Industrial Zone
- 3rd largest car manufacturing zone
- It is also on Honshu Island
- Manufacturing zones include Nagoya, Honda, Toyota and Okazaki
- Toyota Motor Corporation has its headquarters at the City of Chiru, 20 km east of Nagoya
Major Electronics Manufacturing Zones in Japan
- Major electronics manufacturing cities include Tokyo, Kobe and Osaka and other towns of Hitachi and City of Chiru (Fuji machine)
Significance of Car and Electronic Industries in Japan.
The economy of Japan has been boosted by the Car and Electronic industries in the following ways
- Foreign exchange earnings
- Japanese cars and electric appliances are very popular in the international market cities earning Japan a lot of foreign exchange - Increase job opportunities
- The car and electronic industries have offered employment opportunities to thousands of Japanese - Growth of towns
- Car and electronic industries have led to the growth of towns.
Examples of such towns include Yokohama, Osaka, Kyoto, Akashi and Okayama - Improved Transport Network
- Roads and Railways have been constructed to cater for the transportation of raw materials ad the finished products for the car and electronic industries - Establishment of training institutions
- Due to the need for skilled manpower in car and electronic industries, universities and colleges have been set up to train personnel
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