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Types of Manufacturing

Types of Manufacturing. Manufacturing businesses can be classified based on the process . Labor intensive: requires a lot of person hours to produce the product. Ex. Jewelry making , crafts Capital intensive: requires a lot of expensive equipment to make the product.

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Types of Manufacturing

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  1. Types of Manufacturing
  2. Manufacturing businesses can be classified based on theprocess. Labor intensive: requires a lot of person hoursto produce the product. Ex. Jewelry making, crafts Capital intensive: requires a lot of expensive equipment to make the product. Ex. Automotive industry
  3. Manufacturing businesses can be classified based on the output. Heavy industry:produces products for other industry. Ex. Ship yard, tractor production, helicopters Light Industry: produces products for consumers use. Ex. Pop industry, toys, clothing
  4. Classify the following as labour or capital intensive and light or heavy industry. Making water turbines? _______________ Assembling televisions? _______________ Shirt manufacturing? _______________ Ship building? _______________ Pg. 218 Figure 13.2
  5. Case Study Manufacturing Wrigley’s Gum ( handout )
  6. Factors Affecting Industry Location
  7. Land Must have good drainages, dense well-settled soil, etc. Energy not as important a factor today due to our ability to transport power long distances. Important if company can produce their own or buy cheap. Proximity to raw material. Heavier & bulkier the raw material the closer the industry will be located to reduce transportation costs.
  8. Human-Based Cost Factors Market Oriented Industry If the weight of end product is greater than the input resources it is located near the market. THIS IS ALSO REFfERED TO AS A WEIGHT GAIN Resource Oriented Industry If the weight of end product is less than the input resources it is located near the resource. THIS I ALSO REFfERED TO AS WEIGHT LOSS The purpose of this decision is to reducetransportation costs.
  9. 3. Agglomeration Tendency The tendency for factories producing related products to locate close to each other for mutual benefit. Ex. Car factory & tire factory. How does each benefit by being located close to each other? 1. Market / Supply is close by. 2. Transportation costs are reduced.
  10. 4. Industrial Parks Industrial parks are attractive for manufacturing businesses because of: Existing infrastructure of roads, on ramps and off ramps to highways, large lots, sewer, ample electricity etc. Close location to related industries. Pool of skilled workers available in urban areas.
  11. 5. Labor force characteristics that attract business… Wages:lower wages are better. Training: highly skilled / educated people are better. Benefits: lower costs of employment insurance, pensions, etc. are better. Availability: high unemployment rate might attract business…large available labor pool.
  12. Government Influences Transportation subsidies Subsidies allow businesses to locate farther from the resource andencourage industry in rural areas. Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf. 2. Tax breaks Provinces like NL have attempted to attract business by offering tax breaks.  The company obtains a financial break while the province gets the advantage of putting people to work.
  13. The highly industrialized areas on the earth's surface are concentrated in 4 definite regions: North America, Western Europe, Japan, and Australia Western Europe North America Japan Australia Pg. 223 fig. 13.6
  14. Complete # 14, 15 A & B, 16, 17 on pages 226 – 227. # 14
  15. # 16 # 17 Human factors are sometimes more important – if you need: * Skilled labour * Cheap labour * Government subsidies etc. Physical factors are sometimes more important – if you need: * Raw materials * Suitable land * Cheap energy
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