Industries and
Services
Chapters 11 & 12
Industrial Revolution:
dramatic innovations in manufacturing, mining,
transportation and communication that results in
rapid changes in society and commerce
1730s to 1860s First Phase of the Industrial Revolution.
Textiles, Iron Production, Steam Power
1860s to 1914 Second Phase of the Industrial Revolution
Steel, Chemicals, Railroads, Gasoline Engine, and
mass production.
Post WWII Third Phase of the Industrial Revolution
high technology-computerization, miniaturization
and automation
Why England?
• Geographic Advantages:
– Island-not invaded
– Resources-coal, iron ore,
water power, rivers
• Political Advantages:
– Stable governmentencouraged business
• Cultural Advantages:
– Entrepreneurs willing to
take a risk & inventors. A
monopoly of skilled
workers
•Economic Advantages:
–Banking system and
available capital
–The Agricultural
Revolution and Enclosure
Movement -supply of
cheap and abundant labor.
–A large merchant fleet
was protected by an
efficient navy.
–Mercantilism-colonies
provided sources of raw
materials and markets.
James Watt’s improved
steam engine made steam
power a versatile form of
energy for mining, iron
production, transportation
and even, the milling of
flour and brewing of beer.
• Abraham Darby ‘s
coking process, which
baked the impurities
from coal, gradually
replaced scarce charcoal
as the fuel for iron
production.
• Pictured at right are some
of the original coking
ovens in
Northumberland,
England.
Diffusion to Mainland Europe
• Early 1800s innovations
diffused to mainland
Europe-Low Countries &
Germany
– Location criteria-proximity
to coal fields
– Connection to a water port
• Latter Diffusion in late
1800s innovations
– Location criteria-access to
railroads strengthened Paris
and London as
manufacturing centers
Diffusion to Mainland Europe
• A belt of coal fields stretch
along southern edge of North
European Plain-northern
France, Netherlands, German
Ruhr, western Bohemia &
Silesia
• Rotterdam, Netherlandslocated on the Rhine-connects
Ruhr Valley to the sea-most
important port of Europe
• Paris-luxury items-jewelry,
perfume, fashions plus
metallurgy and chemicalsLeHavre major port connects
Paris with the sea
Location Theory
• Location Theory –
predicting where a business
will or should be located.
• Location of an industry is
dependent on economic,
political, cultural features as
well as whim.
• Location Theory Considers:
– Variable costs-energy,
transportation costs & labor
costs
– Friction of distance-increasing
distance =increased time &
cost
Location Models
Weber’s Model-The Least Cost Theory
Alfred Weber, (1868-1958) a German economists, published Theory
of the Location of Industries in 1909. His theory was the industrial
equivalent of the Von Thünen Model.
Manufacturing plants will locate where costs are the least.
Three Categories of Costs:
Transportation-the most important cost-usually the best site is where
cost to transport raw material and finished product is the lowest
Labor-high labor costs reduce profit-location where there is a supply
of cheap, non-union labor may offset transportation costs
Agglomeration-when a group of industries cluster for mutual benefitshared services, facilities, etc.-costs can be lower
Deglomeration-when excessive agglomeration offsets advantageeastern crowded cities
Location Models
• Hotelling’s Model-Harold
Hotelling (1895-1973) this
economist modified Weber’s
theory by saying the location of
an industry cannot be understood
with out reference to other similar
industries-called Locational
Interdependence
• Lösch’s Model-August Losch
said that manufacturing plants
choose locations where they can
maximize profit. Theory: Zone of
Profitability
Lösch’s Model-Zone of Profitability
Major Industrial Regions of the
World before 1950
• First manufacturing belts were
close to raw materials & good
transportation
• In addition to raw materials
other factors: relative location,
political situation, economic
leadership, labor costs &
education and training.
• Four primary industrial regions
were Western & Central
Europe, Eastern North
America, Russia & Ukraine and
Eastern Asia
Western and Central Europe
• Europe’s coal deposits stretch across northern France, north
central Germany, northwestern Czech Rep. & southern
Poland.
• Colonial Empires gave France, Britain, Belgium,
Netherlands & later Germany capital for industrial
development.
• Germany-The Ruhr & the Westphalian coal field, Saxony
near Czech Rep. Silesia, now part of Poland.
• Germany is still the leading producer of coal & steel and is
Europe’s major industrial power.
• European Coal and Steel Community was the
predecessor of the European Union.
Manufacturing
Centers in Western
Europe
• The manufacturing centers
in Western Europe extend
in a north-south band from
Britain to Italy.
• The are centered on coal
fields and iron ore deposits
and cross roads of
transportation.
Western and Central Europe
• The Ruhr, a small tributary
to the Rhine, became the
leading industrial region of
Europe
• Saxony and its cities of
Leipzig & Dresden became
known for cameras, textiles
and ceramics.
• Destruction of WW IIGerman factories were
rebuilt-competitive edge
over older factories of North
America
The American Manufacturing Belt
• America’s manufacturing belt
extends from the Northeast
coast to Iowa and from the St.
Lawrence Valley to the Ohio
& Mississippi Rivers.
• New England & New Yorklight manufacturing New
York with its large market
has a huge skilled & semiskilled labor force.
• Philadelphia & Baltimore
with heavy industry-iron ore
was smelted in tidewater steel
mills
The American Manufacturing Belt
• NYC Port is a break-ofbulk (cargo shifted from one
mode of transport to another)
center.
• Buffalo on Lake Erie grew
after the Erie Canal was
finished-early 19th cent.
• Interior nodes-Pittsburgh,
Cleveland, Detroit, ChicagoGary, Milwaukee, St. Louis
& Cincinnati-Appalachian
coal & Mesabi iron oreautos, bulldozers, harvesters,
& appliances
Caterpillar manufacturing
plant in Aurora, Illinois
The Former Soviet Union
• Moscow developed light industry in the last days of the
Tsars and St. Petersburg focused on machinery, optics,
medical equipment, shipbuilding, chemicals & textiles
• Soviets emphasized heavy industry-established Nizhni
Novgorod (southeast of Moscow) as the “Detroit of the
Soviet Union”
• WW II Soviets shifted industries east to protect them from
the German advance-Volga area & Urals
• Ural Mountains provided metallic ores:copper, iron, nickel,
chromite, bauxite, etc.
• Siberia coal and iron remained important
• Kuzbas, Krasnoyarsk and Lake Baykal region served by
Trans-Siberian Railroad-impressive coal, timber & water
resources
Major Manufacturing Regions of East Asia
Shanghai Steel
Mill
• Japan built steel mills in
Dongbei (Manchuria)
during its occupation in
WW II
• From 1949 until 1969
Soviet planners helped
the China industrialize
• Tonghua Iron & Steel is
subsidized and operated
by the Communist
Party.
• Built in 1958, it
employs 29,000
workers-China produces
30% of the world’s steel
Eastern Asia-China