Rimma
Where did the industrial Revolution
begin, and how did it diffuse?
 How do location theories explain
industrial location?
 How has industrial production changed?
 What are the major industrial belts in the
world today and why?
 What is the service economy, and where
are services concentrated?
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Industrial
Revolution
The first steps did not use revolutionary energy sources.
18th century was marked by a series of new inventions
that brought new uses to known energy sources.
 The flow of capital into Western Europe enabled investors
to fund inventors and to perfect inventions.
 Innovations in iron manufacturing enabled the production
of the steam engine and other products made of iron.
 The use of molds allowed more consistency in iron parts
and increased production of components.
 Steam engine was used to pump water out of coal mines,
enabling coal workers to reach deeper coal streams; and
to create a new mode of transportation, the railroad.
 Ocean shipping also entered a new age when the first
steam-powered vessel crossed the Atlantic in 1819.
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Diffusion of
Industrialization
Proximity to coal fields and connection
via water to a port same as in industrial
ports in Europe
 Railroads
 Railroad systems connecting to Paris
strengthened the city’s position as the
largest local market for manufactured
products for hundreds of miles.
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Location
Theories
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German economic geographer Alfred Weber
(1868-1958)
Least cost theory accounted for the location of
a manufacturing plant in terms of the owner’s
desire to minimize three categories of costs.
Excessive agglomeration leads to high rents,
rising wages, and circulation problems.
Deglomeration is when factories lead many
industries to leave the crowded urban centers
of the US eastern megalopolis and move to
other locations.
Transportation
Labor
Agglomeration
Lowest possible cost
for transporting the
raw materials to the
factory and the
finished products to
the market.
Find cheap labor to
maximize profit.
When a substantial
number of enterprises
cluster into the same
area, they can
provide assistance to
each other through
shared talents,
services, and facilities.
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Harold Hotelling (1895-1973) sought to
understand the issue of locational
interdependence
Ice cream stands
Concluded that two vendors will start locations
distant from one another so that they could
each be as close to as many customers as
possible.
Purpose was to show that the location of an
industry could not be understood without
reference to the location of other industries of
like kind.
Lösch (1967) tried to determine locations
which would maximize profit.
 Would locate in areas where at least
some profit was expected
 Firms will try to situate themselves away
from the margins of that zone.
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Manufactoring
Belts
Before 1960, the main locational costs for
industries were transportation of raw
materials and shipping of finished
products.
 Before 1950, only a small minority of
countries were major industrial
economies.

Region
Industrialization
Manufacturing Belts
Western and Central
Europe
•Industrialization
between the late
eighteenth and early
twentieth centuries.
•World’s leading
producers of coal and
steel.
•Rühr became
Europe’s greatest
industrial complex.
•When local iron ores
reserves become
depleted, ores could
be brought from
overseas.
Eastern North America
•Began in New
England late in
colonial times.
•Not rich in mineral
resources
•Didn’t need to go
overseas for raw
materials to produce
energy.
•Region serves as a
break-of-bulk point,
where cargo is
transported from one
mode of
transportation to
another node of
transportation.
Region
Industrialization
Manufacturing Belts
Russia and Ukraine
•Focused on
manufacturing in the
western parts of Russia.
•Had an enormous
expanse of resources
and raw materials
within its borders.
Used the resources
and industrial potential
of Ukraine to become
an industrial power.
Ukraine produced as
much as 90 percent of
all the coal mined in
the Soviet Union.
Eastern Asia
•Japan became one
of the world’s leading
industrial countries in
the beginning of the
IR.
•Industrialization was
built on capital from
colonization and on
government policies
that had the specific
goal of
industrialization.
•Dominant region is
the Kanto plain.
•Gigantic cluster of
cities and suburbs
forms the eastern
anchor of the
country’s core area.
Fordist vs.
Post-Fordist
Fordist
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Post-fordist
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The basic principles of Fordism were the
foundation of a large processing plant marked by
inflexibility in a process that was overseen by a
bureaucratic and hierarchical managerial system.
Focused on protecting the national market: it
sought to keep jobs within its own borders with the
purpose of selling mainly to citizens of its own
country
Allowed for the production of consumer goods at
a single site on a previously unknown scale.
Recognition that the large-scale,
bureaucratic organization doesn't apply
and, in fact, hinders the process.
More flexible system of set production
practices in which goods are not mass
produced.
Global
Division of
Labor
Production of televisions allows us to
understand the workings of global labor
and the shifts in production that occur as
goods become standard commodities of
trade.
 Research and design of televisions continue
to be located in the home countries of the
major television manufacturers.
 Labor is moved into the periphery and semiperiphery to take advantage of lower labor
costs.
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Any multinational country is involved in designing products
and finding buyers for the new products.
Importance of
Transportation in Industrial
Location
Importance of Regional
and Global Trade
Agreements
Importance of Energy in
Industrial Location
•Efficient transportation
systems allow
manufacturers to transport
their goods to factories and
then the population
•Amount of goods
produced today would not
be able to be shipped
globally without the
container system
•Similar to bilateral
agreements on trade
between two countries, but
involve more than two
countries
•Set up a special free trade
agreement among parties
to the association, leaving
nonmember countries to
trade through the rules of
the WTO.
•Dependence on industrial
fuel supplies affects three
of the four world industrial
regions
•Not as significant in
Industrial Location but it is
the goal of many countries
to occupy and energy
source.
Intermodal
connections
Places where two or more modes of
transportation meet in order to ease the
flow of goods and reduce the cost of
transportation
 Includes air, road, rail, barge, and ship
 Container system – goods are packed in
containers that are picked up by special,
mechanized cranes from a container ship in
an intermodal connection and placed on
the back of a semi-trailer truck, barge, or
railroad car

Deindustrialization
 Deindustrialization
is a process by
which companies move industrial jobs
to other regions with cheaper labor,
leaving a high rate of unemployment.
 The economic processes leading to
deindustrialization in some parts of the
world have led to industrialization in
other parts of the world.
Outsourcing: when production is turned
over in part or in total to a third party
 Offshoring: to outsource to a third party
located outside of the country
 Example: China
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Major industrial expansion occurred during the
communist period.
Vast country with a substantial resource base.
The second largest industrial region in china
developed around the country’s biggest city.
China’s large labor force could attract
hundreds of companies around the worldeconomy’s global division of labor.
Pushing industrialization to the center of the
country.
Major recipient of industrial work that is
outsourced or moved offshore.
Service economy
and Technopoles
 Service
industries do not generate an
actual, tangible product; instead they
include the range of services that are
found in modern societies.
 In the global economic core, service
industries employ more workers than
primary and secondary industries
combined.
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Deindustrialization and the growth of the
service economy unfolded in the context of a
world-economy that already characterized by
wide socioeconomic disparities.
The Sunbelt is a region of the United States,
stretching through the Southeast to the
Southwest.
New Influences on Location
› Useful to go back to our distinction among tertiary,
quaternary, and quinary industries.
› If they are located too far from their consumers,
they are unlikely to succeed.
An area designated by local or state
government to benefit from lower taxes
and high technology infrastructure with
the goal of providing high-technology
jobs to the population.
 Technopole is an area planned for high
technology where agglomeration built
on synergy among technological
companies occurs.
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