Upload
jenny
View
56
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Industry. http://www.economistpakistan.com/news/INDUSTRY_2.jpg. Definition. Industry – The manufacturing of goods in a factory Globalization has changed focus, location Maquiladora – Factories built by U.S. companies in Mexico Near the border Lower labor costs - PowerPoint PPT Presentation
Citation preview
Industry
http://www.economistpakistan.com/news/INDUSTRY_2.jpg
Definition Industry – The
manufacturing of goods in a factory
Globalization has changed focus, location
Maquiladora – Factories built by U.S. companies in Mexico Near the border Lower labor costs Consumers: price is more
important than originhttp://media.web.britannica.com/eb-media/42/100842-004-
DCCD2AEC.jpg
Origins of Industry Industrial Revolution
– Improvements in industrial technology that transformed the process of manufacturing goods N. England/Scotland in
the late 1700s Replaced cottage
industries (home-based manufacturing)
http://www.historyhome.co.uk/pict2/cottind.jpg
Origins cont’d Key: steam engine
(1769, James Watt) Could concentrate
whole process in one building
Industries impacted: iron, coal, transportation, textiles, chemicals, food processing
Result: high productivity, better living standards
http://3.bp.blogspot.com/_8-z-DJhoXIQ/Swn-fZk23wI/AAAAAAAACJ4/AyTCkhzRAkw/s1600/
WattSteamEngine.jpg
Europe ¼ of world’s
industrial output Emerged during the
1800s/early 1900s Key areas:
United Kingdom Rhine-Ruhr Valley
(most important area, iron/steel)
Mid-Rhine (Germany) Po Basin (Italy)
http://homepage.smc.edu/buckley_alan/ps7/europe_industry_1850a.gif
Europe cont’d N.E. Spain (fastest-
growing, focus: textiles) Moscow (fabrics) St. Petersburg
(shipbuilding) Volga (petroleum,
natural gas) Urals (minerals) Kuznetsk (coal/iron) Donetsk (Ukraine, coal,
iron, natural gas) Silesia (Poland, steel)
http://img-fotki.yandex.ru/get/4515/154814723.0/0_6065b_b82a631d_XL.jpg
North America Arrived later, but grew
faster than in Europe Focus: N.E. U.S., S.E.
Canada Regions:
New England (oldest, textiles)
Middle Atlantic (largest) Mohawk Valley (food
processing) Pittsburgh/Lake Erie (steel) Western Great Lakes (cars) S. California (clothing) S.E. Ontario (steel, cars)
http://www.blogcdn.com/www.autoblog.com/media/2010/06/x08buen091.jpg
East Asia Key resource: people Japan
Growth – 1950s/1960s Focus: motor vehicles,
electronics China
Largest supply of low-cost labor
Focus: textiles, steel, household goods
1990s - allowed transnational companies in, led to rapid economic growth
http://www.carztune.com/wp-content/uploads/2011/05/Japanese-auto.jpg
Situation Factors
http://m.b5z.net/i/u/10032028/i/2948863.jpg
Definition The transport of
materials to and from a factory Key factor in
determining why industries locate in particular places
Goal: minimize cost of transporting inputs (parts/resources) to factory, and finished goods to consumers
http://us.123rf.com/400wm/400/400/anzav/anzav0611/anzav061100192/594631-the-motor-vehicle-transports-
trees-on-a-factory.jpg
Bulk-Reducing Industry Industry in which
inputs weigh more than the final product
Example: Copper Several steps in
production (mining, smelting, refining)
Need economical energy source for most steps
2/3 of U.S. copper comes from Arizona (proximity to mines is most important)
http://www.mining-technology.com/projects/bingham/images/bing9.jpg
Bulk-Reducing cont’d
Example: Steel Manufactured by
removing impurities and adding elements (manganese, chromium)
Steel mills have been replaced by minimills, which use scrap metal
Proximity to markets is now more important than inputs
http://menofsteelrecycling.com/steelplant.jpg
Bulk-Gaining Industry Making something
that gains volume or weight during production
Example: fabricated metals Brings metals together
and transforms them into a complex product
Most plants locate near markets due to shipping costs
http://www.feida-usa-supply.com/Fabricated%20Metal%20Parts.jpg
Bulk-Gaining cont’d Markets for fabricated
metal: TVs, refrigerators, air conditioners, motor vehicles
Beverage production Empty cans/bottles are
filled with liquid, shipped to consumers
Weight adds to shipping costs, so plants are located near markets
http://www.theepochtimes.com/n2/images/stories/large/2009/04/30/cc73486687.jpg
Other Industries Single-Market
Manufacturers Specializers with only
1-2 customers Ex. Motor vehicle parts
Perishable Product Manufacturers Ex. Bread, milk,
newspapers Both industries must
locate close to customers
http://goldcountryprint.com/index_htm_files/animatedpress.gif
How to Transport? Truck – short-distance,
best for one-day delivery Train – Longer distance,
no need for stops Ship – Low cost, cross-
continental Air – High cost, for small,
high-value packages Break-of-Bulk Point
Location where transfer of travel modes is possible
Cost rises with additional break-of-bulk points
http://roguemedia.org/wp-content/uploads/2012/02/Container-Ship.jpg
Site Factors
http://archdoc.mr926.me/pics2/1212/2011070112124916305.jpg
Definition
The unique characteristics of a location
Three traditional production factors: Labor Land Capital
http://edu.glogster.com/media/5/18/66/99/18669985.jpg
Labor
The most important site factor
Labor-intensive industry Industry in which
wages and other compensation paid to employees constitutes a high percentage of company expenses
Found mainly in LDCs
http://www.fibre2fashion.com/_resources/industry-articles/24/2398/1_files/image002.jpg
Labor cont’d Example: textiles
(woven fabrics) Step one: spinning
Done mainly in LDCs (China = 2/3 of cotton thread)
Synthetic fibers used in recent years (rayon, nylon, polyester)
Child labor is commonly used
http://www.cctv.com/english/20090205/images/1233820679619_1233820679619_r.jpg
Labor cont’d Weaving
93% of weaving is done in LDCs
Low labor costs offset shipping costs
Assembly 4 types of products
(garments, carpets, home products, industrial products)
Assembled close to consumers (in MDCs)
http://www.adhesives-equipment.com/partners/forbo/Bild-Bonding-Systems.jpg
Land New factories need
lots of space (one-story facility)
Likely location: suburban or rural sites
Proximity to major highways is most important Past: railways Present: Semi-trucks
http://www.business-in-asia.com/images/hemaraj3.JPG
Land cont’d Environment
Mild climates, year-round activities can also influence site selection
Also: access to affordable electricity▪ Ex. Alcoa▪ World’s largest aluminum
producer▪ Relies heavily on
hydroelectric power▪ Constructed its own dams
to produce power
http://3.bp.blogspot.com/_2mF3zJKEu1E/TGyb8IG4TvI/AAAAAAAAE6c/oJvRRdfNvPk/s1600/045.JPG
Capital Key source: borrowed
money Industries located
near available capital ‘Auto Alley’ – Michigan,
Indiana, Illinois Silicon Valley –
California (1/4 of all U.S. capital is spent here)
LDCs have great difficulty obtaining capital
http://www.zillow.com/blog/images/sanmateotosanjose_1.gif