1. An Introduction to Industry, Some important terminology
Brownfield sites: Reclaimed industrial or residential land that is cleared and made available for development.
Capital: The money invested in companies to allow them to start production.
Communications: An all-encompassing word for all transport methods as well as phone, fax and .
Footloose industry: An industry that is not tied to a location by its need for raw material.
Greenfield sites: Rural land, often just outside cities, that is cleared and used for industry, often Science and Business Parks.
Labour: The workforce.
Market: Where the company will sell its product. The market for many large companies nowadays is the entire world.
Multi-national companies: Large corporations, with their headquarters in a developed country, who have factories in countries all over the world. This gives them access to cheap labour, cheap land and the world market.
Trans-national companies: See 'Multi-national companies'.

2. Any industry can be viewed as a system, with inputs, throughputs (or processes), outputs and feedback. The diagram below shows how these link together:

3. Feedback is what is put back into the system.
Inputs-
Physical inputs are naturally occurring things such as water, raw materials and the land.
Human or Cultural Inputs are things like money, labour, and skills.
Processes or Throughputs are the actions within the industry that change the raw materials into the finished product. For instance, all the processes needed to change pieces of wood into a chair.
Outputs
Negative : Negative outputs include waste products, such as off-cuts.
Positive: The positive outputs are the finished product and the money gained from the sale of that product.
Feedback is what is put back into the system.
The main two examples of this are money, from the sale of the finished product, and knowledge, gained from the whole manufacturing process. This knowledge could then be used to make the product better of improve the efficiency of the processes

4. A very good example of an industrial system is the car manufacturing industry, like the Rover factory at Longbridge in Birmingham.
This is actually more of an assembly industry as most of the parts are made elsewhere and then brought to Longbridge to be put together.
The example of the car industry

5. Classifying Primary, secondary, tertiary and quaternary industry
Industry can be classified using a four-way division.
Primary
Secondary
Tertiary
Quaternary

6. Primary industries : Those which produce the raw materials for another industry.
For examples: Mining, quarrying, farming, fishing and forestry
People working in these industries are described as being in the primary sector.

7. Secondary industries are the manufacturing and assembly industries
Secondary industries are the manufacturing and assembly industries. They take raw materials and manufacture finished products from them.
Examples: steel manufacture, bread making and food processing.
People working in these industries are described as being in the secondary sector.
Tertiary industries are service industries, and are the area of most growth in the United Kingdom.
Examples: Doctors, teachers, lawyers, estate agents, travel agents, accountants and policemen.
People working in these industries are described as being in the tertiary sector.
Quaternary industries are the newest, most hi-tech sector of industry. They are the research and development industries.
Examples include the development of new computer components and research into GM crops.
People working in these industries are described as being in the quaternary sector.

8. The factors that affect the location of industry
Site and land: Most industries require large accessible areas of cheap, flat land on which to build their factories.
Labour: The availability of a labour force is more important to some industries than others. Labour intensive industries like car assembly need a readily available supply of labour.
Raw materials: If raw materials are bulky or heavy, the industry will locate close to save on transport costs.
Energy: This was a more important factor in the past: factories needed to locate close to a source of power, originally water, and then coal. This is not so important now because many industries use electricity.

9. Transport/Communications: The availability of a good transport network, roads, railways and airports is very important to modern industries. They wish to receive their components quickly and despatch the finished goods to market with the greatest speed.
Markets: The importance of nearness to markets is dependant on the goods being produced.
For example:
Fragile goods – need to be produced near to their markets so that they do not get damaged on route.
Bulky goods – Need to be made close to the market because of high transport costs.
Service industries : must locate at their market. Market is not so important to other industries
Natural routes River valleys and flat areas were essential in the days before railways and motorways made the movement of materials easier. 

10. Cost of land Greenfield sites in rural areas are usually cheaper than brownfield sites in the city.
Environment: Industries nowadays are far less restricted in their location requirements. Many now look at what the area can provide for its workers before deciding to locate there.
Government policy: Industrial development is encourages in some areas and restricted in others. Industries that locate in depressed ('Development') areas may receive financial incentives from the government and assistance from the EU in the form of low rent and rates.
Capital: This is the money that is invested to start a business. The amount of capital will determine the size and location of the factory

11. Employment structures
You can use the percentage of people working in each sector to help describe how developed a country is. This is called the employment structure.
By looking back through history you can also see how one single country has developed by looking at the changes in their employment structure.
The more developed a country becomes the more it will rely on secondary and, in particular, tertiary industries.
A less developed country will be characterised by a greater percentage of the population in primary industries, usually farming.

12. Example: Ethiopia The United Kingdom
Primary: 88%; Secondary: 2%; Tertiary: 10%; Quaternary:0%
The United Kingdom
Primary: 3%; Secondary: 25%; Tertiary: 70%; Quaternary: 2%

13. How Industrialized is Fiji?
1996 – manufacturing contributed 12% to GDP
Employed (1/4 of all formal employment)
Manufactured exports accounted for 1/3 of all exports

14. 2005 – manufacturing contributed 14% to GDP
Employed
By regional standards : high level compared with other Pacific Islands except PNG, where levels of industrialization is extremely low
By world standards : lower than many other developing countries
Close to level of industrialization of least developed countries

15. Structure of manufacturing in developing countries

16. The manufacturing sector’s contribution to GDP has not changed very much in the last 30+ years
Began with food processing ie. sugar & copra milling
Diversified after independence

18. Structure of Manufacturing
Food processing remains very important (sugar milling & fish canning)
Non-resource processing manufacturing (garment industry - ½ of manufacturing employment) growing in importance.

19. Garment exports rose dramatically up until 2000

20. Today diversified - include the manufacture of textiles, garments & footwear, sugar, beverages (including mineral water), tobacco, food processing, wood & metal based industries
Growth is expected from the sugar industry restructure & new FMF biscuit factory
Growth due to strong production performance in beverages, tobacco & food industries (canned fish & biscuits)
Natural resource based sectors have huge potential for development.

22. Garment exports fell
Clothing & footwear industry declined - loss of US garment quota & declining margin of preference into the Australian market
August 2004 – negotiations with Australian Government successful
Extension of SPARTECA TCF scheme for another 7 years

23. Beverages – mineral water exports increased from $5. 9m (1999) to $67
Beverages – mineral water exports increased from $5.9m (1999) to $67.9m (2005) – upward trend will continue beyond 2006
Wood based manufacturing (ie mahogany) – the commencement of community mahogany harvesting will boost manufacturing production

24. Distribution of Manufacturing Establishments
Most industries established in Suva
large population
centre of government
excellent harbour facilities
Suva still dominant
Lautoka developed some manufacturing
Manufacturing activities outside Suva & Lautoka are resource processing industries - fish cannery in Levuka, copra milling in Savusavu & sawmills spread throughout the country