INDUSTRY-any form of economic activity through which people produce goods and services for their consumption.
Industrialization-process through which a country establishes manufacturing 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
- 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 bulky and expensive 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
- They are located near main power supply pints to reduce the cost of transmitting power e.g. those in Jinja town 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 the transport cost.
- They are located where buyers of products are available or in areas with dense population to make their operation to be economically viable since they are established for commercial purpose 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 daily products. Industries making fragile goods are located near markets to prevent the high risk of breakage during transportation e.g. glass, bricks and roofing tiles.
- 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 faster industrial growth than that without which are forced to depend on expatriates who are costly to hire and maintain which lowers the profits of such industries.
- Industries also require skilled manpower and management skills to ensure maximum output and low production costs.
- 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 near R. Nzoia, Sony near R. Migori and Chemilil near R. Nyando.
- Decentralisation of industries or encouraging by providing incentives location of industries from urban to rural areas.
- Tax exemptions
- Protection from foreign competition.
- 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 produce harmful fumes and a lot of noise.
- Security reasons to prevent industries from being attacked by terrorists because if they were all 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 in their respective areas to open up the region for development
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.
- 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.
- A lot of capital is required in establishing and developing industry e.g. for purchasing land, putting up buildings and purchasing machinery and equipment.
- Countries with plenty of capital industrialise with greater ease than those with little capital which often rely on foreign aid and multinational corporations to set up domestic industries which reduces benefits accruing from such industries.
- 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
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.
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.
According To the State of Finished Goods
- Manufacture heavy and bulky products.
- Use heavy raw materials.
- Involve heavy investment in their production.
- Production is in large scale e.g. ship building, car manufacturing and assembling, oil refineries, steel rolling mills, fertiliser making plants, glass industries etc.
Ones involved in making goods with little volume and weight e.g. textile, cosmetics, plastic, printing, electronics, cigarette, etc.
Distribution of Industries in Kenya
- 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 in urban areas where there is a large ready 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 scrap 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, pharmaceutical industries which manufacture medical products e.g. Glaxo Smithkline and Beta Health Care in Nairobi.
Industries involved in making products particularly in homes using hands and simple tools.
- Locally available materials are used.
- Capital infested is small.
- Most of the 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
Cottage industry in which pots and flower vases are made using clay.
Its 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.
Some products are sold locally while the rest are exported with some being bought by tourists as souvenirs (reminder).
Involves using sisal, dry palm leaves dry papyrus, nylon fibres etc to make products such as baskets, mats, and fish traps etc.
Baskets mainly known as Ciondos are mainly done by Agikuyu women and are sold locally and to tourists.
Weaving is also practised along the coastal region where dry palm leaves are used to make baskets, mats, etc.
Other cottage industries 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.
The government has realised the importance of the industry and is encouraging its development in the following ways:
- 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 utilises 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 than those produced in the formal industries.
Significance of Industrialisation 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.
- Industrialisation 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 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.
- Workers in industries have joined together and formed co-operatives in which they save money and are then given loans which they use to start projects or generally enhance their living standards.
- The government also gets revenue through taxation of the dividends got at the end of the year from the profits of SACCOs.
- 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 co-operation which in turn helps to foster good relationships among countries of the world.
- Industries based on locally available materials encourage utilisation of resources which would be 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 are provided.
- Industrialised countries are likely to produce adequate goods making them to be self-sufficient in industrial goods.
Problems of Industrialisation and Their Possible Solutions
- Kenya lacks adequate capital for industrial establishment forcing her to get loans from financial institutions such as I.M.F and World Bank whose interest rates are very high and sometimes come with strings attached.
The solution is 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.
- 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.
- The solution is supplementing local raw materials with imported raw materials.
- Planting more trees to increase raw materials required for timber related industries.
- 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.
- Government should explore market within regional trading like COMESA, EAC, etc.
- It should also provide technical assistance to local manufacturers so that produce goods 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.
- 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.
- More people should be trained in respective fields to make up for shortage.
- Improvement of salaries and working conditions to check the brain drain.
- Locally produced goods compete with imported goods which are in most cases cheaper leading to the decline or death of local industries. There for instance is importation of 2nd hand clothes which has led to the decline of textile industry.
- 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.
- 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 affordable.
- Industries cause environmental degradation e.g. pollution from the emissions they release into the air and effluents they release into water bodies. Atmospheric has led to global warming and water pollution to death of fish. Industries such as cement manufacturing make land derelict by depositing rock wastes on the ground.
- 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.
- Has led to the neglecting of agriculture when able bodied people move to urban areas to look for jobs in industries, when people neglect food crops and take up cash crop production.
- The problem can be solved by offering better prices for agricultural produce to make agriculture more attractive.
- Farmers should be encouraged to diversify their activities.
- it has led to unemployment as it has led to technological innovations such as computers and robots and other automatic gadgets which have replaced physical manpower.
- People are being encouraged to become self employed.
- Industries are also discouraged from laying down their staff.
- Has led to displacement of people by forcing people to vacate the area where manufacturing industries are being established e.g. the preparation for titanium mining at Kwale District.
- The solution is compensating and resettling the displaced residents.
- Efforts should be made to locate industries in sparsely populated areas.
- Causes rural to urban migration as a result of establishment of industries in urban areas where rural dwellers go to seek for jobs. This has caused shortage of labour in rural farms, congestion in urban areas leading to pressure on existing social amenities, inadequate job opportunities leading to crime and other social evils, etc.
- The government should ensure equitable distribution of industries throughout the country.
- It should encourage industries to be put up in rural areas through tax exemptions.
- Provision of amenities such as electricity, clean water and entertainment facilities in rural areas.
Cottage Industry in India
The major areas in which it’s highly developed include Mumbai, Jabalpur, Magpur, Bhopal, Bhutan, Madras, Calcuta, Bangalore, Lucknow and Moradabad.
The industry involves weaving, making clothes, brass, Copper and silver ware ornamental ivory, jewellery, carpets, safety matches, etc.
Characteristics of Cottage Industry in India (Comparison)
- 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 its individuals or members of groups.
- Industry is owned by the family in India while in Kenya it’s 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.
- Other characteristics are typical of cottage industries.
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 the 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.
Problems Faced By Cottage Industries in India
- Difficulty in obtaining raw materials at affordable prices.
- Shortages of capital as most of the people are poor and have little access to modern banking facilities.
- Artisans could form co-operatives 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.
- 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.
Its one of the most industrialised regions of the world. Other areas of the world which are highly industrialised are:
- Pittsburgh industrial region of U.S.A.
- Moscow area of former Soviet Union.
- Tokyo-Yokohama region of Japan.
- 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, Dortmurd-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 transport network due to the need to transport raw materials and finished products related to iron and steel industry.
- Led to growth and expansion 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 provision of social amenities to cater 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 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 Asiatic continent made of numerous major/large and minor/small islands.
- Kagoshima and
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 (robots controlled by computers) 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 with those from European countries which make 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 is available 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 sea enabling the raw materials and manufactured goods to be transported to or from any part of the world through the modern ports of 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 prerequisite in a manufacturing plant. 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 (electronics products).
Osaka-Kobe Industrial Zone
2nd most important car manufacturing zone.
It’s 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’s also on Honshu Island.
- Manufacturing zones include Nagoya, Honda, Toyota and Okazaki.
- Toyota Motor Corporation has its headquarters at the City of Chiru 20km east of Nagoya.
Major car manufacturing cities include Tokyo, Kobe and Osaka and others are towns of Hitachi and City of Chiru (Fuji machine).