Ch. 11 Industry
Key Issues 1-2
Warm Up
Reminders:
Turn in Agri Project
Reading Notes due 4/22
SE Asia Map due 4/29
• Von Thunen’s Model would best fit which statement?
• A. Agricultural products need to be close to market to minimize
transportation costs
• B. Raw materials need to be close to market to minimize
transportation costs
• C. Lower-income countries are considered periphery locations
• D. Farmers practicing subsistence agriculture need to sell their
products to market
• E. Shepherds practicing pastoral nomadism move to a commercial
market
Huffy Bicycles
1892-1998=Ohio, $10.50/hour
1998-1999=Farmington, $8/hour
1999-2001=Nueva Laredo, MX, $5/hour
2001-present=Sha Jiang, China, $0.25/hour
Price of bikes:
Celina=$80.00
Sha Jiang=$40.00
Where is Industry Distributed?
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Much more clustered than Agriculture
Agriculture=25% of earth, Industry=1%
Europe
North America
Approx. ¾ of the worlds
industrial production is in
East Asia
North America, Eastern
Europe, Western Europe
and East Asia
Why Europe?
• Proximity to raw materials (coal, iron ore)
• Proximity to markets
• United Kingdom—hearth of Industrial Revolution
http://www.youtube.com/watch?v=fsiE8yOBbUI
• 3 Major Areas:
The Industrial
– Rhine-Ruhr Valley
– Mid-Rhine
– Northern Italy
Revolution began in
Great Britain in the
late 1700s
Industry in Europe
Eastern Europe
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Industry was established by Communists in the 19th/20th centuries
Central Industrial District—large market
St Petersburg, Volga, Ural Industrial districts
Variety of resources:
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Oil
Gas
Metals
Coal
Iron
Steel
Manufacturing Centers in Eastern
Europe and Russia
Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European
Russia, and the Ukraine. Other centers were developed east of the
Urals.
North America
• Industry arrived later by colonization
• NE US, SE Canada—early settlement, high
population, good transportation, iron and coal
• Utilized waterways of Great Lakes and St.
Lawrence Seaway
At the time, the East Coast had
largest markets, raw materials,
transportation and climate
suitable for industry
Industrial Regions of North America
Even today, the Western Great
Lakes’ biggest asset is its access
Fig. 11-6: The major industrial regions of North America are clustered in the northeast
to transportation
U.S. and southeastern Canada, although there are other important centers.
East Asia
• Unlikely site:
– Isolated
– few resources
– WWII
Japan had to
overcome its
isolation/distance
from consumers
• Advantage: large labor force
• International trade approach: focused on high quality
electronics and precision instruments
Manufacturing Centers in East Asia
Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In
Japan, production is clustered along the southeast coast.
Why are Industries Where they are?
• Remember site and situation from Ch. 1?
• Situation Factors-Transportation to and from
• Site Factors-Unique characteristics of a location
Which is an input? Which is a product?
Situation Factors
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Situation Factors are all about
Proximity to inputs
location—minimizing costs
Raw Materials
associated with transportation
Parts made by other companies
Depending on weight/bulk industry may locate near the input
factors
• Bulk-reducing industry=final product weighs less than the
inputs
• Copper, Steel, Potato Chips
Situation Factors
• Proximity to Markets
• Bulk-Gaining Industries=something that gains volume or
weight during production
– Drink Bottling
– Fabricated metals and machinery
– Perishable products
Example: Where would
automobile producers
select for a location?
Other types of industry…
• Single-Market Manufacturers are
specialized manufacturers with only
one or two customers. Depending
on size of item or need, can be
placed near or far from the factory.
Example – parts for a specific car
manufacturer
• Perishable Products are industries
that must be located near the
market because of the perishability
of the product.
Example – food items and
newspapers
Ship, Rail, Truck or Air?
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Which method of
transportation should industry
use?
LOWEST COST, duh!!!! BUT
industry must find the
transportation that best meets
their needs.
The lowest cost
transportation for
very long distances
is by boat
Why is Houston a break-of-bulk point?
• Many companies that use multiple transport modes locate at a
break-of-bulk point, which is a location where transfer among
transportation modes is possible.
• Most often found in seaports and airports.
• Another word for break of bulk is entrepot
Weber’s Least Cost Theory
• Alfred Weber-German Economist 20th cent.
• Describes the location of industries
• Company building a plant considers the raw materials and the
market.
• Weight of raw materials vs. finished product influences where built
• Raw materials, labor, transportation. Transportation is easiest to
control
• Potato chips vs. french fries
Weber’s Least Cost Theory
Weber’s Assumptions
• Same topography
• Everyone within triangle must have same opportunity to
purchase the product and same desire for it
• Transportation is equally available in triangle
• Labor is always available
• Raw materials are available and a market is known for the
product