Transcript Industry - swofford

Industry
APHG
Spring 2013
Key Issues
• Where is industry distributed?
• Why are situation factors important?
• Why are site factors important?
• Why are location factors changing?
http://embed.ted.com/talks/hans_rosling_asia_s_rise_how_and_when.html
Where is Industry Distributed?
• Origin of industry
– From cottage industries to the Industrial
Revolution (series of events)
– Impact of the Industrial Revolution especially
great on iron, coal, transportation, textiles,
chemicals, and food processing
– Most significant impact of the IR was to promote
concentration rather than dispersion of industry
across the landscape
Diffusion of the Industrial Revolution
When, Where, Why:
• Island of Great Britain in midto late 1700s
• Why?
– Flow of capital
– Second agricultural
revolution
– Mercantilism and cottage
industries
– Resources: coal, iron ore,
and water power
– Diffusion of railways
Industrial Revolution Hearths
The Industrial Revolution
originated in areas of
northern England. Factories
often clustered near
coalfields.
Flow of Capital Into Europe , 1775
Needed flow of capital in order to fuel the
Industrial Revolution
Textiles
Production:
Liverpool and
Manchester
Iron
Production:
Birmingham
Coal Mining:
Newcastle
Diffusion to Mainland Europe
• In early 1800s, innovations diffused into mainland
Europe.
• Location criteria:
• proximity to coal fields;
• Connection via water to a port
• Flow of capital
Later Diffusion
•In late 1800s, innovations diffused to some regions
without coal.
•Location criteria:
•Access to railroad
•Flow of capital
Diffusion of
Industrial
Revolution
The Paris Basin is the Industrial base of France. Rouen
(pictured here) is at the head of navigation point on
the Seine River.
Where is Industry Distributed?
• Industrial regions
– Europe
• Emerged in late nineteenth and early twentieth
centuries
• Western Europe, Central Europe, Russia
(Europe/Asia)
– North America
• Industry arrived later but spread faster than in
Europe
– East Asia
Industrial Regions
The world’s major manufacturing regions are found in North America,
Europe, and East Asia. Other manufacturing centers are also found
elsewhere.
Industrial Areas in Europe
Industrial Areas in North America
Manufacturing Centers in East Asia
Many industries in
China are clustered in
three centers near the
east coast. In Japan,
production is clustered
along the southeast
coast.
Major
Manufacturing
Regions of
East Asia
How do Location Theories explain
Industrial Location?
Location Theory
• Location Theory – predicting where
business will or should be located.
• Considerations:
• Variable costs
• Friction of distance
Location Models
Weber’s Model
Manufacturing
plants will locate
where costs are the
least (least cost
theory)
Theory:
Least Cost Theory
Costs:
Transportation,
Labor,
Agglomeration
Hotelling’s Model
Location of an
industry cannot
be understood
without reference
to other industries
of the same kind.
Theory:
Locational
interdependence
Losch’s Model
Manufacturing plants
choose locations
where they can
maximize profit.
Theory:
Zone of Profitability
Losch’s Model - Zone of Profitability
Zones of distance decay – sales will be unprofitable.
Why Are Situation Factors Important?
• Situation factors
– Proximity to inputs
– Location near markets
– Transport choices
• Types of Industries
– Bulk-reducing industries
– Examples:
• Copper
• Steel
• Others?
Integrated steel mills in the U.S. are clustered near the
southern Great Lakes, which helped minimize transport
costs of heavy raw materials.
• Proximity to markets
– Bulk-gaining industries
– Examples:
• Fabricated metals
• Beverage production
– Single-market manufacturers
– Perishable products
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.
Copper Industry in North America
Copper mining, concentration, smelting, and refining are examples of bulk-reducing
industries. Many are located near the copper mines in Arizona
Location of Beer Breweries
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.
Why Are Situation Factors Important?
• Ship, rail, truck, or air?
– The farther something is transported, the lower
the cost per km/mile
– Cost decreases at different rates for each of the
four modes
•
•
•
•
Truck = most often for short-distance travel
Train = used to ship longer distances (1 day +)
Ship = slow, but very low cost per km/mile
Air = most expensive, but very fast
Why Are Site Factors Important?
• Labor
– The most important site factor
– Labor-intensive industries
• Examples: textiles
–Textile and apparel spinning
–Textile and apparel weaving
–Textile and apparel assembly
Cotton Yarn Production
Production of cotton yarn from fiber is clustered in major cotton
growing countries, including the U.S., China, India, Pakistan, and
Russia.
Woven Cotton Fabric Production
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.
Production of Women’s Blouses
Sewing cotton fabric into women’s blouses is more likely to be
located near customers in MDCs, but much production now
occurs in LDCs.
Why Are Site Factors Important?
• Land
– Rural sites
– Environmental factors
• Capital $$$
Site Selection for Saturn
GM considered a variety
of economic and
geographic factors
when it searched for a
site for producing the
new Saturn in 1985.
The plant was
eventually located in
Spring Hill, TN.
Why Are Location Factors Changing?
• Attraction of new industrial regions
– Changing industrial distribution within MDCs
• Interregional shift within the United States
– Right-to-work laws
– Textile production
• Interregional shifts in Europe
– Convergence shifts
– Competitive and employment regions
Changing U.S. Manufacturing
Manufacturers of Men’s and Women’s
Socks and Hosiery
Hosiery manufacturers
usually locate near a
low-cost labor force,
such as found in the
southeastern U.S.
European Union Structural Funds
•Manufacturing has diffused
from traditional industrial
centers in NW Europe toward
Southern and Eastern Europe.
• European government policies
have encouraged this industrial
relocation.
• The EU provides assistance to
what it calls convergence
regions and competitive and
employment regions.
Central Europe offers
manufacturers an attractive
EU Structural Funds. The EU provides subsidies combination of two important
in regions with economic difficulties because of site and situation factors – labor
declining industries, as well as to regions that and market proximity.
have lower-than-average incomes.
Why Are Location Factors Changing?
• Attraction of new industrial regions
– International shifts in industry
• East Asia – one the of the world’s three major industrial
regions. Rapid industrial growth; In addition to China and
Japan, also includes S. Korea (world’s leading producer of
lrg container ships (international trade) Leading producer
of steel and fabricated metal products.
• South Asia – Led by India, one of the fastest-growing
economies among lrg countries. Textiles dominant
industrial sector; motor vehicle production is growing;
important ctr for business services.
• Latin America – nearest low-wage region to the US.
Maquiladora plants located in northern Mexico shipping is lower to US from Mexico than any other LDC.
Brazil leading industrial country in Latin America;
industries clustered around two large cities in the SE part
of Brazil.
Newly Industrialized
•China – major industrial growth after 1950
• Industrialization in the 1960s was state-planned:
(Why?)
Focused on: Northeast District
Shanghai and Chang District
• Today, industrialization is spurred by companies that
move productions (not the whole company) to take
advantage of Chinese labor and special economic
zones (SEZs)
BRICs – Brazil, Russia, India, China, South Africa
As China’s economy
continues to grow, old
neighborhoods (right)
are destroyed to
make room for new
buildings (below).
Beijing, China
– Changing distributions
– Modern Production
• Outsourcing - moving individual steps in the
production process (of a good or a service) to a
supplier, who focuses their production and offers a cost
savings.
• http://www.metatube.com/en/videos/10420/TheSimpsons-India-Outsourcing/
• Offshore – Outsourced work that is located outside of
the country.
World Steel Production
Since the 1980s, all the world’s increase in steel production has been in LDCs.
China has had the greatest increase.
Global Production
Steel production has
generally declined in
MDCs and increased
in LDCs, especially in
China, India, Brazil,
and South Korea
Apparel Production and Jobs in the U S
Apparel production and jobs in the US. The number of jobs in the apparel
industry has declined sharply in the US since the 1990s. Not by coincidence, the
% of everyday clothing accounted for by domestic production has decreased
sharply, replaced with imports.
Why Are Location Factors Changing?
• Renewed attraction of traditional industrial
regions
– Proximity to skilled labor
• Fordist, or mass production
• Post-Fordist, or lean production
• Just-in-time delivery
Post-Fordist
• Fordist – dominant mode of mass production
during the twentieth century, production of
consumer goods at a single site.
• Post-Fordist – current mode of production with a
more flexible set of production practices in which
goods are not mass produced. Production is
accelerated and dispersed around the globe by
multinational companies that shift production,
outsourcing it around the world.
Time-Space Compression
Through improvements
in transportation and
communications
technologies, many
places in the world are
more connected than
ever before.
Time-Space Compression
• Just-in-time delivery
rather than keeping a large inventory of
components or product, companies keep just
what they need for short-term production and
new parts are shipped quickly when needed.
Two issues can result from reliance on just-intime delivery: labor unrest and “Acts of God”
• Global division of labor
corporations can draw from labor around the
globe for different components of production
This labor can be skilled or unskilled.
Electronic Computing Manufacturing
Computer and parts
manufacturing
requires highly skilled
workers and capital. It
is clustered in the
Northeast and the
West Coast
Women’s and Girls’ Cut and Sew
Apparel Manufacturing
Women’s and Girls’ cut
and sew apparel
Manufacturing requires
more skilled workers,
and much manufacturing
is still clustered in or
near New York City.
Deindustrialization
• a process by which
companies move
industrial jobs to
other regions with
cheaper labor,
leaving the newly
deindustrialized
region to switch to a
service economy and
work through a
period of high
unemployment
Abandoned street in Liverpool, England,
where the population has decreased by onethird since deindustrialization.
Key Question
What is the Service Economy, and Where
are Services Concentrated?
Service Economy
• Service Industry
• Economic activity associated with the
provision of services – such as transportation,
banking, retailing, education, and routine
office-based jobs.
Geographical Dimensions of the
Service Economy
• New influences on Location:
- information technologies
- less tied to energy sources
- market accessibility is more relevant for
some and less relevant for others because of
telecommunications.
- presence of Multinational Corporations
Wal-Mart
Requires producers of goods to locate office in the Bentonville,
Arkansas (Wal-Mart’s headquarters) area in order to negotiate
deals with Wal-Mart.
Proctor & Gamble
put their office in
nearby
Fayetteville,
Arkansas.
How does the
presence of these
companies in the
region change the
region’s economy
and its cultural
landscape?
Nike
Headquartered in Beaverton, Oregon,. Nike has never
produced a shoe in Oregon. Beginning in the 1960s, Nike
contracted with an Asian firm to produce its shoes.
Skopje,
Macedonia
The swoosh is
ubiquitous, but
where is the shoe
produced?
Nike has a global
network of
international
manufacturing
and sales
High – Technology Corridors
• An area designated by local or state government
to benefit from lower taxes and high-technology
infrastructure with the goal of providing hightechnology jobs to the local population.
eg. Silicon Valley, California
• Technopole – an area planned for high
technology where agglomeration built on a
synergy among technological companies occurs.
eg. Route 128 corridor in Boston
Plano-Richardson, Texas
Telecom Corridor is just north of Dallas
• What majors are most popular at the college
or university you will be attending?
• Consider what service/high- technology
corridors may already exist near that college
or university.
• Propose (where, why, how) a new
service/high-technology corridor for your
region based on what that college/university
has to offer the industry.
Up Next: Exam Chapters 9 - 11
• Then Political
Geography
Read Chapter 8