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CHAPTER 11

CHAPTER 11. INDUSTRY. INTRO. ¾ of world’s industrial production is located in four regions: NW Europe Eastern Europe Eastern North America East Asia Each is broken down further Less than 1% of Earth’s land is devoted to industry

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CHAPTER 11

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  1. CHAPTER 11 INDUSTRY

  2. INTRO • ¾ of world’s industrial production is located in four regions: • NW Europe • Eastern Europe • Eastern North America • East Asia • Each is broken down further • Less than 1% of Earth’s land is devoted to industry • When compared to agriculture, industry is much more clustered in space • 2 key factors in determining best location for a factory: • Where the markets for the product are located • Where the resources needed to make the product are located

  3. ISSUE #1 Where is Industry Distributed?

  4. Manufacturing Value Added Fig. 11-1: The world’s major manufacturing regions are found in North America, Europe, and East Asia. Other manufacturing centers are also found elsewhere.

  5. INDUSTRIAL DISTRICTS IN EUROPE(see KI#1 worksheets) WESTERN EUROPE EASTERN EUROPE Central Industrial District St. Petersburg Volga Ural Kuznetsk Eastern Ukraine Silesia • UK • Rhine-Ruhr Valley • Mid-Rhine • Northern Italy

  6. Manufacturing Centers in Western Europe Fig. 11-2: The major manufacturing centers in Western Europe extend in a north-south band from Britain to Italy.

  7. Manufacturing Centers in Eastern Europe and Russia Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European Russia, and the Ukraine. Other centers were developed east of the Urals.

  8. INDUSTRIAL DISTRICTS IN NORTH AMERICA(see KI#1 worksheets) U.S. CANADA St. Lawrence Valley-Ontario Peninsula • New England • Middle Atlantic • Mohawk Valley • Pittsburgh-Lake Erie • Western Great Lakes

  9. Industrial Regions of North America Fig. 11-6: The major industrial regions of North America are clustered in the northeast U.S. and southeastern Canada, although there are other important centers.

  10. INDUSTRIAL DISTRICTS IN EAST ASIA(see KI#1 worksheets) • Best asset is its large labor force • Japan – emerged as an industrial power in the 1950s/1960s • China – world’s 2nd largest manufacturer, largest labor force in manufacturing

  11. Manufacturing Centers in East Asia Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast.

  12. ISSUE #2 Why Do Industries Have Different Distributions?

  13. Industry seeks to maximize profits by limiting production costs. Companies usually face two types of geographical costs: Situation Factors Site Factors (result from the unique characteristics of a location) (involve transporting materials to and from a factory)

  14. SITUATION FACTORS IN + 1. PROXIMITY TO INPUTS 2. PROXIMITY TO MARKETS 3. TRANSPORT CHOICES

  15. PROXIMITY TO INPUTS STEEL If the weight of an input is great, a factory may choose to locate near the input in order to cut down on transportation costs

  16. COPPER CARTOON • Draw a picture/visual representation depicting the various aspects of copper as a bulk-reducing industry. Your picture must contain a picture of a copper mine and the following: • Concentration mills • Smelters • Refineries - Include a brief caption explaining the location of each as it relates to the copper mine

  17. MAKE ARIZONA YOUR COPPER HEADQUARTERS!!!! • The map on page 373 states that “In the United States, most plants that concentrate, smelt, and refine copper are in or near Arizona, where most copper mines are located.” • Arizona has been hit very hard by recent economic woes, especially in regards to real estate. You have the opportunity to turn the tide by bringing commercial real estate to Arizona by attracting members of the copper industry to your state. • Your job is to create a commercial highlighting why Arizona is such a great state for a company to establish their copper headquarters. You can be as creative as you want as long as you meet the guidelines.

  18. GUIDELINES • Your commercial must: • Summarize each of the following processes: • mining, concentrating, smelting, refining • Explain why being located in Arizona helps with each process. (this is the meat of the commercial - sell, sell, sell!) • Have an image (and text, music, slogan… accompanying it) for each of the above listed. Your creativity can really come here, use music, vids, pictures, jingles, slogans…… Due Date: Monday, March 21 - email to Mr. Oswald prior to the start of class

  19. PROXIMITY TO INPUTS - STEEL • Bulk-reducing industry • Originally Iron and Steel mills clustered near the sources of these raw materials (iron ore and coal - see map on 374) • Watts steam engine (1769) – increases iron production

  20. Integrated Steel Mills Fig. 11-9: Integrated steel mills in the U.S. are clustered near the southern Great Lakes, which helped minimize transport costs of heavy raw materials.

  21. U.S. STEEL INDUSTRY • MID – 1800s – clustered in Pittsburgh and SW PA (why? what was there? – iron ore and coal) • Gradually moves west (where and why? – Minnesota, Indiana, Illinois – discovery or iron ore but also changes in the steelmaking process which required more iron ore in proportion to coal) • In first half of the 20th century most steel mills were built along the coasts (why did this change occur? – changes in transportation costs as more iron ore was imported and greater use of scrap iron, which was available near major cities on the coasts)

  22. U.S STEEL cont. • Many steel mills have recently closed • Survivors benefit from access to markets more than access to inputs • Goes against historical trend (why?)

  23. Nucor Steel Minimills Fig. 11-10: Minimills produce steel from scrap metal, and they are distributed around the country near local markets. Nucor is the largest minimill operator.

  24. PROXIMITY TO MARKETS • For many, best location is closest to where the product is sold (ex. soda) - transportation costs are especially critical for these industries: 1. Bulk-gaining 2. Single Market 3. Perishable

  25. PROXIMITY TO MARKETS cont. BULK-GAINING INDUSTRY FABRICATED METALS & MACHINERY Combines steel and other metals into more complex products (tv, refrigerators, air conditioners, motor vehicles) Assembly plants clustered in “auto alley” (why?) Recent change in location of assembly plants from coasts to interior due to changing market See insets on page 376 • Good examples are soft drinks • Why is scotch whiskey an exception?

  26. Location of Beer Breweries Fig. 11-11: Beer brewing is a bulk-gaining industry that needs to be located near consumers. Breweries of the two largest brewers are located near major population centers.

  27. Chevrolet Assembly Plants, 1955 Fig. 11-12a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.

  28. Chevrolet Assembly Plants, 2007 Fig. 11-12b: In 2007, GM was producing a wider variety of vehicles, and production of various models was spread through the interior of the country.

  29. PROXIMITY TO MARKETS cont. SINGLE MARKET MANUFACTURERS PERISHABLE PRODUCTS Must be located near markets (think milk and Von Thunen) Not the case for frozen foods (cheese, butter) Not all perishables are food (newspaper – why?) • “ just in time products” • Location to assembly plants, not markets, is most important • Think of parts makers for cars

  30. Motor Vehicle Parts Plants Fig. 11-13: U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-owned plants tend to be located further south, where labor unions are weaker.

  31. SHIP, RAIL, TRUCK OR AIR?You are responsible for this section (up to Site Factors) on your own

  32. PICTURES • Draw a picture that depicts an example of each of the following and include a brief caption explaining the picture: • Proximity to Input (does not have to be steel, just needs to be bulk-reducing) • Proximity to Market (needs to be gulk-gaining, single-market, and/or perishable) • Transport Choice (boat, train, automobile, plane))

  33. SITE FACTORS L A N D CAPITAL

  34. LABOR • 150 million manufacturing workers (China-20%, U.S. – 10%) • Labor intensive vs. capital intensive (what is the difference?) • Wages (> $20/hr. in MDCs, <$5/hr in LDCs) • On a global scale ,labor is the most important site factor a lot of hard work does not always mean high pay

  35. LABOR cont. TEXTILE & APPAREL SPINNING TEXTILE & APPAREL WEAVING Even more labor intensive than REALLY clustered in LDCs (they grow cotton and have low wages) Chemical industry changes textiles but also foods colors for clothing and preservation/canning for food • Labor intensive; low wage (highly clustered in LDCs – see p.381) • Spinsters and cottage industry before the Industrial Revolution • Becomes clustered industry during the 1700s (spinning frames and mills, located near flowing water)

  36. Cotton Yarn Production Fig. 11-14a: Production of cotton yarn from fiber is clustered in major cotton growing countries, including the U.S., China, India, Pakistan, and Russia.

  37. Distribution of Cotton Yarn Production Fig. 11-14b: Three-quarters of cotton yarn is produced in less developed countries.

  38. Woven Cotton Fabric Production Fig. 11-15a: Production of woven cotton fabric is labor intensive and is likely to be located in LDCs. China and India account for over 75% of world production.

  39. LABOR cont. TEXTILE & APPAREL ASSEMBLY • Textiles are assembled into 4 main products • Garments, carpets, home products, industrial uses • Most clothing articles are produced in Asia

  40. Trouser Production Fig. 11-16a: Sewing cotton fabric into men’s and boys’ trousers is more likely to be located in developed countries, but much production now occurs in LDCs.

  41. Distribution of Trouser Production Fig. 11-16b: The majority of trouser production is in MDCs, near customers.

  42. LAND • Not nearly as critical a factor as labor when considering only land (why not?) • It is only a critical factor when it takes into account resources (natural and human)

  43. LAND cont. • Prior to IR many economic activities were located near rivers and forests (why?) • During the IR they moved close to coalfields (clustered industry) • During the 20th century electricity has become more important to industry (want to be near cheaper electricity)

  44. CAPITAL • Industries often borrow funds to build/expand (ex. motor vehicle industry in Michigan) • Availability of capital was key factor in the evolution of Silicon Valley • Ability to borrow has become increasingly important in LDCs

  45. 1. An industry in which a large percentage of wages and benefits goes to employees is a _________________ type of industry.

  46. LABOR INTENSIVE

  47. 2. TEXTILE AND APPAREL INDUSTRY ACCOUNTS FOR _____ % OF WORLD MANUFACTURING EMPLOYMENT.

  48. 14%

  49. 3. BECAUSE IT IS LABOR INTENSIVE SPINNING IS DONE MOSTLY IN _____ (MDCs or LDCs)

  50. LDCs

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