WHAT IS AN INDUSTRY
An industry refers to the activity that many people are involved in especially for commercial purpose.
It is an organized economic activity connected with the production, manufacture, rending of services or construction of a particular product or range of products.
Manufacturing Industry refers only to those activities which change the state (conditions) of raw materials into something more useful and valuable.
Many of the things people use are made by their hands or machines from shops or factories. Foodstuffs such as bread, noodles, and sauce bottled drinks canned food are all from the manufacturing industry. Products such as household goods e.g crockery, utensils, plastic containers, garments, paints, cements, fertilizers and insecticides are manufactured from factories. Also modern living is made possible by factories which manufacture electrical appliances such as fans, radios, television, and refrigerators, telephones computers e.t.c.
Classification of industry.
There are three main categories- Primary, Secondary and tertiary.
1. Primary industry: These are industries that deal with the extraction of natural resources from the earth.
Examples are: Farming, lumbering, fishing and mining.
2. Secondary Industry: These are the processing industry which changes the state of the raw materials for example oil palm fruit into Palm oil. Also, the manufacturing industry which assembles the parts of different raw materials into a new product. Example is the making of wrist watches from several tiny metals by skilled craftsmen.
Examples are textiles, engineering, chemicals, transport vehicles etc.
3. Tertiary Industry: This is the service industry. They render services in exchange for cash and not the production of goods. Examples are. Trading, tourism, Transport and banking.
Factors required for manufacturing Industry.
1. Decision: To venture into the trade, decision must be taken. Family members, friends, experts and other businessmen who have the knowledge and experience in the industry can be consulted.
2. Capital: This is needed to commence the business. One has to make estimate of how much money is needed to run a factory.
3. Site: A suitable site or location for the factory needs to b e considered. Either to site the factory in government industrial areas or in the suburbs.
4. Machinery: Once a factory is established, one will have to order the various machinery to make the products. These machines may be made locally or imported.
5. Workers; These are needed to run the machines, manufacture the various products in the factory
6. Electricity: This is needed to drive the machines and to run the factory and the office.
7. Raw materials: A wide range of raw materials is required for the manufacture of products.
8. Transport: Lorries need to be hired, to bring in the raw materials, and to distribute the finished products to the buyers and importers.
9. Net Profit: This is derived after paying all the expenses involved in the inputs.
10. Ploughed back: Whatever earnings the company makes in the manufacture of products are ploughed back into the factory to buy more raw materials, better machinery and for further extension of the factory building.
FACTORS WHICH INFLUENCE THE LOCATION OF INDUSTRY
1. Maximization of Profit: Businessmen seek to locate their industry in areas where they have access to maximum advantages and minimum disadvantage.
2. Proximity to market: This is of prime importance in other to reduce cost of transportation. Also proximity to raw materials is also important.
3. Availability of raw materials: Raw materials come from many sources, thus, plants and factories are often located near ready source of raw materials.
4. Fuel and power: In the past, wood or Charcoal has been the source of power to many factories. Nowadays, electricity transmitted from hydro power stations or generated in thermal plants is most common form of energy used everywhere.
5. Human resources: Human resources may be divided into three aspects, management staff, Labour supply, and technology and Research. This three factors are essential for an industrial undertaking to be sucessful.
6. Transport: Transport is required in carrying raw materials to the industrial plants and to distribute the finished products to local consumers as well as to export destinations.
7. Market: Industries that are likely to be located near markets include, Perishable goods, fragile products, Bulky goods, labour intensive industries and industries that involve much personal contact with customers.
8. Capital: A lot of capital is needed to set up any industry. Constructing or rental of buildings, buying raw materials, ordering machinery and transport vehicles. Money is also needed for the payment of loans, expenses involved in promotion, advertising, and welfare of the workers.
9. Government Policies: The government plays a key role in deciding the growth, nature and location of industries. The cutting down of import of manufactured goods and earning foreign exchange from the export of manufactured goods are some ways governement encourage localization of industries.
10. Other factors: These are less important factors but may be decisive in application to some particular industries. They include, availability of Land, Political stability, Historical factors, climate and water supply.
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