How are manufacturing and tertiary activities inter-related?

• Manufacturing is concerned with producing goods from raw materials, tertiary activities
are concerned with the distribution of finished goods from the factory to the final
consumer.
• Unless there were tertiary activities finished goods would not be sold because there would
not be any advertising, no finance to build factories, no storage facility, no transport to
the retailer/wholesaler and no communication between buyer and seller.
• Manufacturing would not be able to take place as goods would be stockpiled and so it is
dependent on tertiary activities to get the goods to the right person at the right time.
• As manufacturing becomes more specialized, the manufacturer will become more
dependent on others to provide tertiary services.
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• The manufacturer may set up some of the tertiary activities himself – advertise, have
warehouses, have his own transport he may also have his own retail outlet, e.g. factory shop
but usually he sells to wholesaler or retailer.
• Tertiary activities are also concerned with trading in services, advertising and
communicating these services and so is not entirely inter-related with manufacturing.
• The manufacturer will need to insure the factory/its contents against risk, e.g. public liability,
employer’s liability