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Unit 5

Unit 5. Topic: Types of Manufacturing. Pg. 217-218. Types of Manufacturing. …As either requiring large quantities of labour or machinery to do the processing. Labour intensive: requires a lot of person hours to produce the product.

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Unit 5

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  1. Unit 5 Topic: Types of Manufacturing

  2. Pg. 217-218 Types of Manufacturing • …As either requiring large quantities oflabour or machinery to do the processing. • Labour intensive: requires a lot of person hours to produce the product. Ex. Jewelry making, pottery, crafts, customization… • Capital intensive: requires a lot of equipment/computers to make the product. • Ex. Automotive industry, bottling plant, pulp mill

  3. Types of Manufacturing • …can be classified based on theoutput. The products made! • Who usesthe end product? Consumers or Businesses? Heavy industry: • produce products for other industry or businesses. • large quantities of material, labor used • outputs/products are usually high priced. Ex. Ship yard, tractor production, helicopters Light Industry: - produces products for consumers use. - smaller in size and cheaper Ex. Pop industry, toys, clothing, food products. Pg. 218

  4. Classify the following as labour or capital intensive andlight or heavy industry. • Making water turbines? • Labour intensive • heavy industry • Assembling televisions? • Labour intensive • light industry • Shirt manufacturing? • Labour intensive • Light industry • Ship building? • labour intensive • heavy industry Pg. 218 Figure 13.2

  5. Some Practice…

  6. Read pages 216-218 – NOW!!!!

  7. Location of Manufacturing Industries Factors Affecting Industry Location = COSTS$$$$$$$$

  8. Site/Physical Cost Factors Pg. 224 • Proximity to raw material • Land • Energy

  9. Site/Physical Cost Factors Pg. 224 • Proximity to raw material. • Closer to the resource IF heavy / bulky ( Ex. Wood, minerals etc.) • REASON: to reduce transportation costs $$$$$.

  10. Site/Physical Cost Factors • Land • a good price $$$$$ • level area • good drainage, • dense well-settled soil etc. • Energy • Cost of obtaining? • Obtain enough? • Type?

  11. Resource-Oriented industry VS Market-Oriented Industry Resource-oriented industry • are located close to the resource , where it is harvested or collected MAIN REASON(s): • the inputs are heavy/bulky & more costly to transport. • near the resource to reduce its wastage / weight AND cost BEFORE transporting. • Examples: Wood, minerals, fishing, oil etc.

  12. Resource-Oriented industry VS Market-Oriented Industry Human-Based Cost Factors Pg. 224 Market-Oriented Industry • located close to the buyers. • Ingredients ADDED to it LATER. • Ship the light weight product and ADD to it near the market • REASON: SAVES $$$$ on shipping ingredients that can been found near the market. EX. WATER, SOIL

  13. WEIGHT-GAIN VS. WEIGHT-LOSS WEIGHT-LOSS • ALSO resource-oriented! • Scrap and wastage will be removed from the resource. • This DECREASES the weight of the finished product / resource. • Weight of THE RESOURCE is greater than the finished product. • reducing the extra weight and therefore extra cost of transporting waste!

  14. WEIGHT-GAIN VS. WEIGHT-LOSS WEIGHT-GAIN • Market-oriented • Ingredients will be ADDED to the resource LATER. • This INCREASES the weight of the finished product / resource. • Weight of END PRODUCT is greater than the input resources • reducing the extra cost of extra weight!

  15. 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?

  16. Industrial parks • Industrial parksare attractive 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

  17. Human-Based Cost Factors Labor forcecharacteristics that attract business… • Wages expected: lower wages are better. • Training: highly skilled people are better. • Benefits: lower costs of employment insurance, pensions, etc. are better. • Availability: high unemployment rate might attract business…large available labor pool

  18. Government Influences • Transportation subsidies • Subsidies allow businesses to locate farther from the resource. • Subsidies allow governments to encourage industry in rural areas. Examples: • ice breakers in Botwood; • roads in Labrador; • cost of coastal transportation in Labrador; • cost of crossing the Gulf. (Ferry Service)

  19. Government Influences 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.

  20. Industry Location; The Global Picture • 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

  21. Case Study Manufacturing Wrigley’s Gum ( handout ) Gum - How It’s Made ( 5 min. Video)

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