http://www.economistpakistan.com/news/INDUSTRY_2.jpg
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Industry – The
manufacturing of goods
in a factory
Globalization has
changed focus, location
Maquiladora – Factories
built by U.S. companies
in Mexico
 Near the border
 Lower labor costs
 Consumers: price is more
important than origin
http://media.web.britannica.com/eb-media/42/100842-004DCCD2AEC.jpg
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Industrial Revolution –
Improvements in
industrial technology
that transformed the
process of
manufacturing goods
 N. England/Scotland in
the late 1700s
 Replaced cottage
industries (home-based
manufacturing)
http://www.historyhome.co.uk/pict2/cottind.jpg
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Key: steam engine (1769,
James Watt)
 Could concentrate whole
process in one building
 Industries impacted: iron,
coal, transportation,
textiles, chemicals, food
processing
 Result: high productivity,
better living standards
http://3.bp.blogspot.com/_8-z-DJhoXIQ/SwnfZk23wI/AAAAAAAACJ4/AyTCkhzRAkw/s1600/WattSteamEn
gine.jpg
¼ of world’s industrial
output
 Emerged during the
1800s/early 1900s
 Key areas:
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 United Kingdom
 Rhine-Ruhr Valley (most
important area,
iron/steel)
 Mid-Rhine (Germany)
 Po Basin (Italy)
http://homepage.smc.edu/buckley_alan/ps7/europe_industry_1850a.gif
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N.E. Spain (fastestgrowing, focus: textiles)
Moscow (fabrics)
St. Petersburg
(shipbuilding)
Volga (petroleum,
natural gas)
Urals (minerals)
Kuznetsk (coal/iron)
Donetsk (Ukraine, coal,
iron, natural gas)
Silesia (Poland, steel)
http://imgfotki.yandex.ru/get/4515/154814723.0/0_6065b_b82a631d_XL.jpg
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Arrived later, but grew
faster than in Europe
Focus: N.E. U.S., S.E.
Canada
Regions:
 New England (oldest,
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textiles)
Middle Atlantic (largest)
Mohawk Valley (food
processing)
Pittsburgh/Lake Erie (steel)
Western Great Lakes (cars)
S. California (clothing)
S.E. Ontario (steel, cars)
http://www.blogcdn.com/www.autoblog.c
om/media/2010/06/x08buen091.jpg
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Key resource: people
Japan
 Growth – 1950s/1960s
 Focus: motor vehicles,
electronics
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China
 Largest supply of low-cost
labor
 Focus: textiles, steel,
household goods
 1990s - allowed
transnational companies
in, led to rapid economic
growth
http://www.carztune.com/wp-content/uploads/2011/05/Japaneseauto.jpg
http://m.b5z.net/i/u/10032028/i/2948863.jpg
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The transport of
materials to and from a
factory
 Key factor in
determining why
industries locate in
particular places
 Goal: minimize cost of
transporting inputs
(parts/resources) to
factory, and finished
goods to consumers
http://us.123rf.com/400wm/400/400/anzav/anzav0611/anzav061100192/5
94631-the-motor-vehicle-transports-trees-on-a-factory.jpg
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Industry in which inputs
weigh more than the
final product
Example: Copper
 Several steps in production
(mining, smelting,
refining)
 Need economical energy
source for most steps
 2/3 of U.S. copper comes
from Arizona (proximity to
mines is most important)
http://www.mining-technology.com/projects/bingham/images/bing9.jpg
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Example: Steel
 Manufactured by
removing impurities and
adding elements
(manganese, chromium)
 Steel mills have been
replaced by minimills,
which use scrap metal
 Proximity to markets is
now more important
than inputs
http://menofsteelrecycling.com/steelplant.jpg
Making something
that gains volume or
weight during
production
 Example: fabricated
metals
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 Brings metals together
and transforms them
into a complex product
 Most plants locate near
markets due to shipping
costs
http://www.feida-usa-supply.com/Fabricated%20Metal%20Parts.jpg
 Markets for fabricated
metal: TVs,
refrigerators, air
conditioners, motor
vehicles
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Beverage production
 Empty cans/bottles are
filled with liquid,
shipped to consumers
 Weight adds to shipping
costs, so plants are
located near markets
http://www.theepochtimes.com/n2/images/stories/large/2009/04/30/cc73
486687.jpg
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Single-Market
Manufacturers
 Specializers with only 1-
2 customers
 Ex. Motor vehicle parts
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Perishable Product
Manufacturers
 Ex. Bread, milk,
newspapers
 Both industries must
locate close to
customers
http://goldcountryprint.com/index_htm_files/animatedpress.gif
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Truck – short-distance,
best for one-day delivery
Train – Longer distance,
no need for stops
Ship – Low cost, crosscontinental
Air – High cost, for small,
high-value packages
Break-of-Bulk Point
 Location where transfer of
travel modes is possible
 Cost rises with additional
break-of-bulk points
http://roguemedia.org/wp-content/uploads/2012/02/Container-Ship.jpg
http://archdoc.mr926.me/pics2/1212/2011070112124916305.jpg
The unique
characteristics of a
location
 Three traditional
production factors:
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 Labor
 Land
 Capital
http://edu.glogster.com/media/5/18/66/99/18669985.jpg
The most important
site factor
 Labor-intensive
industry
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 Industry in which wages
and other compensation
paid to employees
constitutes a high
percentage of company
expenses
 Found mainly in LDCs
http://www.fibre2fashion.com/_resources/industryarticles/24/2398/1_files/image002.jpg
Example: textiles
(woven fabrics)
 Step one: spinning
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 Done mainly in LDCs
(China = 2/3 of cotton
thread)
 Synthetic fibers used in
recent years (rayon,
nylon, polyester)
 Child labor is commonly
used
http://www.cctv.com/english/20090205/images/1233820679619_1233820
679619_r.jpg
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Weaving
 93% of weaving is done in
LDCs
 Low labor costs offset
shipping costs
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Assembly
 4 types of products
(garments, carpets, home
products, industrial
products)
 Assembled close to
consumers (in MDCs)
http://www.adhesives-equipment.com/partners/forbo/Bild-BondingSystems.jpg
New factories need
lots of space (one-story
facility)
 Likely location:
suburban or rural sites
 Proximity to major
highways is most
important
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 Past: railways
 Present: Semi-trucks
http://www.business-in-asia.com/images/hemaraj3.JPG
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Environment
 Mild climates, year-
round activities can also
influence site selection
 Also: access to
affordable electricity
▪ Ex. Alcoa
▪ World’s largest aluminum
producer
▪ Relies heavily on
hydroelectric power
▪ Constructed its own dams
to produce power
http://3.bp.blogspot.com/_2mF3zJKEu1E/TGyb8IG4TvI/AAAAAAAAE6c/oJv
RRdfNvPk/s1600/045.JPG
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Key source: borrowed
money
Industries located near
available capital
 ‘Auto Alley’ – Michigan,
Indiana, Illinois
 Silicon Valley – California
(1/4 of all U.S. capital is
spent here)
 LDCs have great difficulty
obtaining capital
http://www.zillow.com/blog/images/sanmateotosanjose_1.gif