Global Industrial Production: Factors, Location, and Major Regions

The Secondary Sector: Production Factors

This sector includes all human activities aimed at transforming raw materials into processed products. This process is carried out by industry, which plays an important role in society by creating wealth and increasing social welfare.

Elements of Industrial Production

The elements involved in the process of industrial production are as follows:

• The Raw Materials: These come from nature and can be animal, vegetable, or mineral.
• The Sources of Energy: They provide the force necessary to carry out the process of transformation of raw materials into processed products.
• Capital: Assets held by the company to carry out the production process effectively. All industry needs financing.
• Labor: Human resources used by the industry.
• The Business: The production organism in charge of combining the above factors.

Industrial Location Factors

Several factors influence where industries choose to locate:

• Proximity to Raw Materials and Energy Sources.
• Nearness to Consumer Areas: Attraction by locating near large cities, looking for cheaper transportation costs and having a large market nearby.
• Ease of Communication: Necessary both to receive raw materials and to distribute the processed product.
• Labor: Seeking cheap labor and few labor disputes.
• Political Decisions: Governments can allow the installation of businesses with grants, industry incentives, etc.

Types of Industry

• Heavy Industries

  They produce high-weight materials, which need a high volume of raw materials and consume large amounts of energy.

• Light Industry

  They identify with the consumer goods industries and require smaller, less costly facilities. They are often located near cities to facilitate distribution.

Major Industrial Regions

The large industrial areas include:

• Western Europe: Was the first industrial nation in the world.
• The European Union (EU): It is the first industrial nation in the world.
• Japan: The key to their success lies in high technology, abundant skilled labor, and an aggressive commercial policy.
• Russia and other countries such as Ukraine: Have large complexes of basic industries.
• The Workshop Countries: Have specialized in the production of light industrial items that need abundant labor and very basic technology.