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IGCSE Geography – Industry

1. What is Industry?​

Industry refers to the economic activity concerned with processing raw materials and manufacturing goods in factories.

Industry is mainly part of the secondary sector of the economy.

Examples:

  • Car manufacturing
  • Steel production
  • Food processing
  • Electronics production

Industry is important because it:

  • Creates employment
  • Produces goods for people to use
  • Contributes to economic growth
  • Encourages urban development

2. The Industrial System

An industrial system describes how a factory operates.

It can be shown using the model:

Inputs → Processes → Outputs

1. Inputs​

These are the resources required to run a factory.

Examples of Inputs​

Raw materials

  • Iron ore
  • Timber
  • Cotton
  • Oil

Labour

  • Skilled workers
  • Engineers
  • Technicians

Capital

  • Money for machinery and buildings

Energy

  • Electricity
  • Coal
  • Natural gas

Land

  • Space for factories and warehouses

Transport

  • Roads
  • Railways
  • Ports

2. Processes​

These are the activities that convert raw materials into finished products.

Examples:

  • Cutting
  • Mixing
  • Assembling
  • Chemical processing
  • Packaging

Processes may include:

  • Manual work
  • Automated machinery
  • Computer-controlled manufacturing

3. Outputs​

Outputs are the finished products and waste produced by industry.

Products​

Examples:

  • Cars
  • Computers
  • Clothing
  • Food products

Waste​

Industrial waste can include:

  • Smoke
  • Wastewater
  • Chemical waste
  • Noise pollution

Waste must be managed to reduce environmental damage.

3. Types of Industry

Industries can be classified into different types.

1. Manufacturing Industry

Definition:
Industries that convert raw materials into finished goods using machines and labour.

Examples:

  • Car manufacturing
  • Furniture production
  • Textile manufacturing

Example companies:

  • Toyota (cars)
  • IKEA (furniture)

2. Processing Industry

Definition:
Industries that process raw materials into more useful forms.

Examples:

  • Oil refining
  • Food processing
  • Paper production

Example:
Crude oil processed into petrol in refineries.

3. Assembly Industry

Definition:
Industries that assemble parts made in different places into finished products.

Examples:

  • Electronics assembly
  • Car assembly plants

Example:
Parts from different countries assembled into smartphones.

Example company:

  • Apple

4. High Technology Industry

Also called high-tech industry.

Definition:
Industries that use advanced technology and skilled workers to produce complex products.

Examples:

  • Computer manufacturing
  • Biotechnology
  • Aerospace
  • Robotics

Example companies:

  • Intel
  • Samsung

Features:

  • Highly skilled labour
  • Large research investment
  • Located in developed regions

4. Factors Influencing Industrial Location

Industries choose locations based on several important factors.

1. Raw Materials

Some industries locate near raw materials to reduce transport costs.

Example:
Steel factories near iron ore and coal mines.

Example country:
Steel industry in China.

2. Labour

Industries require workers.

Two important aspects:

  • Availability of labour
  • Cost of labour

Labour-intensive industries move to countries where wages are lower.

Example:
Garment factories in Bangladesh.

3. Transport

Good transport systems are essential.

Examples:

  • Roads
  • Railways
  • Airports
  • Ports

Transport helps industries:

  • Import raw materials
  • Export finished products

Example:
Factories near major ports.

4. Markets

Industries may locate close to customers.

This reduces delivery costs.

Example:
Food processing factories close to large cities.

Example:
Factories supplying supermarkets in United Kingdom.

5. Fuel and Power

Many industries require large amounts of energy.

Sources:

  • Coal
  • Oil
  • Natural gas
  • Electricity
  • Hydroelectric power

Example:
Aluminium factories near hydroelectric power stations.

6. Land

Industries need land for:

  • Factories
  • Storage
  • Transport facilities

Important factors:

  • Cost of land
  • Space available

Large factories often locate on the outskirts of cities where land is cheaper.

7. Political Factors

Government decisions can influence industrial location.

Examples:

  • Tax incentives
  • Industrial zones
  • Government grants
  • Trade policies

Governments sometimes create special economic zones to attract industries.

5. Combined Influences on Industrial Systems

Industrial location usually depends on several factors working together.

These factors affect:

1. Location​

Where the factory is built.

2. Scale of Production​

How much is produced.

Large factories produce goods on a mass scale.

3. Methods of Organisation​

Examples:

  • Assembly lines
  • Automation
  • Computer-controlled manufacturing

4. Products​

Location influences:

  • Types of products produced
  • Markets served

Example:
Electronics industries in technology hubs.

6. Industrial Zones

An industrial zone is an area where many factories are located together.

Benefits:

  • Shared infrastructure
  • Good transport
  • Skilled workers nearby
  • Government support

Examples include:

  • Industrial parks
  • Special economic zones

Example zone:
Shenzhen industrial zone in China.

7. Locational and Siting Factors

Locational Factors​

These are regional reasons why a place is chosen.

Examples:

  • Near raw materials
  • Close to markets
  • Cheap labour

Siting Factors​

These are specific characteristics of the exact site.

Examples:

  • Flat land
  • Good drainage
  • Road access
  • Distance from residential areas

8. Environmental Impacts of Industry

Industrial activity can cause environmental problems.

Examples:

  • Air pollution
  • Water pollution
  • Noise pollution
  • Waste disposal issues

Many governments enforce environmental regulations to reduce pollution.

9. Case Study – Industrial Zone

Shenzhen Industrial Zone, China​

Background​

Shenzhen was once a small fishing village.

In 1980, the government made it a Special Economic Zone (SEZ) to encourage industrial development.

Factors Influencing Location​

1. Labour

  • Large supply of workers from rural China.

2. Transport

  • Close to ports and international shipping routes.

3. Markets

  • Close to global markets through export.

4. Government Policies

  • Tax incentives
  • Special economic policies

5. Land

  • Large areas available for factories.

Industries Located There​

Examples include electronics and technology companies such as:

  • Huawei
  • Foxconn

Products include:

  • Smartphones
  • Computers
  • Electronic components

Advantages​

  • Massive job creation
  • Rapid economic growth
  • Increased exports
  • Technology development

Disadvantages​

  • Pollution
  • Traffic congestion
  • Pressure on housing
  • Environmental damage

10. Exam Tips

Tip 1​

Remember the industrial system model:

Inputs → Processes → Outputs

Many exam questions ask you to explain this.

Tip 2​

Use specific examples when explaining location factors.

Example:
“Garment factories locate in Bangladesh because labour costs are low.”

Tip 3​

For 6–7 mark questions, include:

  • Several factors
  • Explanation
  • Example

Tip 4​

For case studies, remember:

  • Location
  • Reasons for location
  • Advantages
  • Disadvantages

11. Key Terms to Remember

TermDefinition
IndustryEconomic activity involving manufacturing and processing
Industrial systemInputs, processes and outputs in production
ManufacturingProducing finished goods from raw materials
ProcessingChanging raw materials into more useful forms
AssemblyPutting parts together to make a product
High-tech industryIndustry using advanced technology
Industrial zoneArea where many factories are located
Locational factorsReasons industries choose a region
Siting factorsFeatures of the exact factory site