Industry and Economic
Development
Chapter 11: Industry
Industry
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Secondary sector
Loss or relocation of manufacturing jobs
Financial incentives to keep jobs in a region
Incentives often considered excessive
Industry more clustered than agriculture
– Based on land, labor, and capital (investment money)
– Based on location/connections relative to markets & resources
• Was clustered in a few MDCs; now diffused to more LDCs
due to lower wages and growing markets
• Maquiladoras – special factories typically owned by U.S.
companies; located in northern Mexico near border;
produce goods typically for sale in U.S. markets; low wage
labor; easy access to U.S. markets
Key Issue #1: Where is Industry Distributed?
• ¾ of Industrial productivity clustered in 4 regions (less than 1% of
Earth’s land vs. 25% for agriculture)
① Western Europe
– Grew because of proximity to raw materials (coal & iron ore) &
proximity to markets (large, wealthy populations)
1) United Kingdom
• Dominated world manufacturing during 1800s – cotton fabric (textiles), iron &
coal (steel)
• Industrial Revolution began in Northern England & Southern Scotland in late
1700s – industrial tech, farming tech, transportation, etc. (higher standards of
living)
• Factories eventually aged & deteriorated; Britain lost power in early-mid 20th
century
• West Germany & Japan became leaders after WW2 with U.S. assistance in
building factories
• Recent industrial expansion with high-tech industries, lower taxes, reduced
government regulation, privatization of formerly public industries
• Autos (Rolls-Royce, Jaguar, Aston Martin, Bentley, Mini, Range Rover)
• Generally locate near Southeastern England (London area)
• Channel Tunnel (“Chunnel”) – road & RR connection to mainland Europe under
English Channel
Key Issue #1: Where is Industry Distributed?
① Western Europe
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Rhine-Ruhr Valley
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U.K. diffused Industrial Revolution to rest of Europe
Belgium – developed new coal-mining technique
France – Coal fired blast furnace for iron
Germany – industrial cotton mill
Industrial Revolution & railroad slowed by political instability – French
Revolution (1789-1799), Napoleonic Wars (1796-1815), Germany not
unified until 1870s
Rhine-Ruhr includes NW Germany, Belgium, NE France, Netherlands
Ruhr is a tributary of the Rhine River
20 million people – Germany (Cologne, Bonn, Dortmund, Dusseldorf,
Essen), Netherlands (Rotterdam, Amsterdam), Belgium (Brussels,
Antwerp, Liege), France (Lille)
Rotterdam – one of the world’s largest & busiest sea ports; where
Rhine meets North Sea
Iron & steel – close to large coalfields
Heavy metal industries – locomotives, machinery, & armaments
Key Issue #1: Where is Industry Distributed?
① Western Europe
3) Mid-Rhine
• SW Germany, France, Luxembourg
• Lacks some raw materials, but at center of important consumer
market (population center)
• Center of EU & “Blue Banana” (Europe’s Megalopolis)
• Grew after WW2 with West Germany
• Germany
– Frankfurt – financial, commercial, & transportation hub
– Stuttgart – high value goods, skilled labor, Daimler, Mercedes Benz,
Porsche
– Mannheim – chemicals, synthetic fibers, dyes, pharmaceuticals
– East of Mid-Rhine region: Bavaria/Munich (BMW, Audi); Wolfsburg
(Volkswagen)
• France – Alsace & Lorraine regions (largest iron ore field in
Europe); steel region
• Luxembourg – Lorraine iron ore region; one of world’s leading steel
producers
Key Issue #1: Where is Industry Distributed?
①Western Europe
4) Northern Italy
• Cities of Turin & Milan
• Southern & Eastern Europe joined Industrial Revolution in
early 20th century
• Po River Valley – textiles; 1/5 of Italy’s land but ½ of
population & 2/3 of its industry
• Inexpensive power from hydroelectricity; proximity to Alps
• Numerous workers willing to accept low (by Europe’s
standards) wages
• Produce automobiles (Fiat, Ferrari, Maserati, Lamborghini,
Abarth, Alfa Romeo), process raw materials, assemble
mechanical parts
Key Issue #1: Where is Industry Distributed?
② Eastern Europe
– 5 in Russia (4 European, 1 Asian), 1 in Ukraine, 1 in
Poland/Czech Rep.
1) Central Russia Industrial District
• Oldest industrial region of Russia; near Moscow (capital & largest
city)
• Few resources, but close to largest market
• ¼ of Russia’s industrial output
• Higher value goods, large pool of skilled workers needed – textiles
(linen, cotton, wool, silk), chemicals, light industrial goods
2) St. Petersburg District
• 2nd largest city in Russia/Eastern Europe
• RR came to St. Petersburg earlier than rest of Russia (more
connected with Europe)
• On Baltic Sea – shipbuilding, industries for Russia’s navy & ports
• Food processing, textiles, chemicals for local markets
Key Issue #1: Where is Industry Distributed?
② Eastern Europe
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Volga District
• Planned by USSR in 20th century
• Volga & Kama Rivers, hydroelectricity
• Grew during WW2 when Germany occupied Central District & Eastern
Ukraine
• Largest petroleum & natural gas fields in Russia
• Motor vehicles at Togliatti, oil refining in Kuybyshev, chemicals in
Saratov, metallurgy in Volgograd, leather/fur in Kazan
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Ural District
• Planned by USSR in 20th century; Ural Mts. – over 1,000 mineral types
• Iron, copper, potassium, manganese, bauxite (aluminum), salt,
tungsten
• Steel, iron, chemicals, machinery, metal fabricating
• Development hindered by lack of nearby energy sources – had to ship
coal 900 miles from Volga-Ural, Bukhara, & Central Siberia
• Includes southern Urals in Kazakhstan
Key Issue #1: Where is Industry Distributed?
② Eastern Europe
5) Kuznetsk District
• Planned by USSR in 20th century in Asia/Siberia due to proximity of
resources
• Most important industrial region in Russia east of Urals
• Largest coal supply in Russia, abundant iron ore
• Iron, steel, other factories
6) Eastern Ukraine
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Donetsk coalfield – one of largest in world
Abundant in iron, manganese, & natural gas
Located on Black Sea/Sea of Azov
Largest producer of pig iron & steel
7) Silesia
• Southern Poland & northern Czech Republic
• Steel (very productive coalfields) but must import iron
Key Issue #1: Where is Industry Distributed?
③ North America
– Industrialized later than Britain & Western Europe; mainly agricultural
after independence
– Labor & capital was scarce in U.S. – manufacturing was expensive
– Shipping was also expensive back and forth to Europe
– 1st textile mill at Pawtucket, RI in 1791 by Samuel Slater (had worked
at Arkwrights in England)
– U.S. embargo on European trade in 1808 to avoid involvement in
Napoleonic Wars – caused domestic textile industry to grow rapidly
– U.S. became 2nd leading industrial country behind Britain by 1860 –
textiles, food processing, lumber processing, iron & steel (late 1800s)
– Industry clustered near coasts, canals, navigable rivers prior to 1850
(railroad)
– Industrial area: mainly NE U.S. & SE Canada (5% of land, 1/3 of pop.,
2/3 of manufacturing)
• 1st European settlement, tied to European markets, infrastructure in place
• Raw materials (iron, coal); transportation (Great Lakes, St. Lawrence R.,
Mississippi R., Ohio R.); connected to West by RRs, trails/hwys, canals, rivers
Key Issue #1: Where is Industry Distributed?
③North America
1) New England
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NH, MA, RI; centered around Boston
Oldest industrial region in U.S.; cotton textiles in early
1800s (imported cotton from South)
Shipped textiles to Europe; abundant inexpensive
immigrant labor in 1800s (from Europe)
Now – abundant, skilled but expensive labor
High-tech industries; proximity to education
2) Middle Atlantic
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NY, CT, NJ, PA, DE, MD; cities of NYC, Philadelphia, DC,
Baltimore, Richmond, Wilmington
Largest U.S. market (many consumers)
Must import raw materials (major port city)
Communications, finance, entertainment
Key Issue #1: Where is Industry Distributed?
③North America
3) Mohawk Valley
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Upstate NY (Buffalo)
Along Hudson River, Erie Canal, Lake Erie, Lake Ontario
Steel, food processing, aluminum, paper, electrochemical
Niagara Falls – inexpensive, abundant hydroelectricity
4) Pittsburgh-Lake Erie
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PA, OH (Pittsburgh & Cleveland)
Most important steel region in 1800s
Close to Appalachian coal & iron ore
Other industries that use/assemble steel
Key Issue #1: Where is Industry Distributed?
③ North America
5) Western Great Lakes
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OH, IN, MI, IL, WI; Toledo, Detroit, Chicago, Gary, Milwaukee
Lake Erie, Huron, Michigan
Chicago – 3rd largest city in U.S.; dominant interior city;
transportation hub (air, water, road, rail)
Detroit – automobile industry hub
Machine tools, transportation equipment, agricultural
machinery, food products, clothing, furniture
6) St. Lawrence Valley-Ontario Peninsula (in Canada)
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Southern Canada on U.S. border
Central to Canadian market/population center
Close to Great Lakes & St. Lawrence River Seaway
Niagara Falls (hydroelectricity)
Hamilton – steel; Toronto – automobiles
Aluminum, paper, flour mills, textiles, sugar refining
Key Issue #1: Where is Industry Distributed?
④ East Asia
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China, S. Korea, Japan, Taiwan
Isolated from world markets; shortage of essential resources
Most abundant resource = large labor force
Japan – became a world industrial power post-WW2 (1950s 60s); produced goods in large quantities at low prices due to
low labor costs in spite of high shipping costs; now has
transformed into highly skilled/trained workforce
South Korea, Taiwan, & other Asian countries followed Japan’s
lead with even lower labor costs
1970s & 80s – Japan turned to high quality electronics,
precision instruments
Japan now the leader in automobiles, ships, cameras, stereos,
TVs
Japanese autos/engines – Toyota/Lexus, Honda/Acura,
Nissan/Infiniti, Suzuki, Mazda, Mitsubishu, Subaru, Isuzu,
Kawasaki, Yamaha
South Korea autos – Hyundai, Kia, Daewoo
Key Issue #1: Where is Industry Distributed?
④ East Asia
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Japan’s industrial regions between Tokyo & Nagasaki
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China – world’s 2nd largest manufacturer in output, largest in
workforce; world’s largest market by number of consumers;
clustered in eastern coastal portion of China
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Tokyo-Yokohama (Kantu Plain)
Osaka-Kobe-Kyoto (Kinki Plain)
Nagoya (between Tokyo & Osaka)
Beijing-Tianjin
Shanghai-Nanjing-Wuhan (on Yangtze/Chang Jiang)
Guangzhou-Hong Kong-Shenzhen
Special Economic Zone (SEZ) – any area with unique economic
laws/regulations (customs, duties, etc.); includes free ports,
entrepot, Export Processing Zones (EPZs), Free Trade Zones (FTZs)
EPZs – typically in LDCs; attract manufacturing operations for export
FTZs – lack of customs oversight; typically at ports, airports
China has established over 200 SEZs since 1980 to allow more
market-oriented economic activity