Labor Intensive Example

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Where is Industry Located?
• Europe
• Western Europe
• United Kingdom
• Industrial Revolution
• What did the I.R. create?
• Rhine-Ruhr Valley
• Important industrial area
• Three Countries
Where is Industry Located?
• Mid-Rhine
• Central Industrial area in Europe
• Close to Iron Fields in France
• Northern Italy
• Po River Basin
• Textiles
Where is Industry Located?
• Eastern Europe
• Russia
• 19th Century – Central and St.
Petersburg Industrial Districts
• 20th Century – Volga and Ural Industrial
Districts
• Eastern Russia – Kuznetsk, Eastern
Ukraine, and Silesia
Where is Industry Located?
• North America
• Industrial Revolution came after England
• U.S. Industrial Areas
• The Northeast
• New England, Mid-Atlantic, Mohawk
Valley, Pittsburgh – Lake Erie, Western
Great Lakes
• Canada’s industrial areas
Where is Industry Located?
• East Asia
• Industrial power After WWII
• South Korea
• Taiwan
• Japan
• Tokyo-Yokohama
• Osaka-Kobe-Kyoto
• China
• World’s second largest Manufacturer
Why do Industries have Different
Distributions?
• Situation Factors – Transporting materials
to and from a factory
• Site Factors – The unique characteristics of
a location
Why do Industries have Different
Distributions?
• Situation Factors
• Proximity of Inputs
• Transportation increases costs. Put
your plant close to your resources and
the market.
• Copper Industry
• Bulk-reducing Industry
• Most copper is in Arizona, so the
manufacturers are in Arizona.
Why do Industries have Different
Distributions?
• Situation Factors
• Proximity of Inputs
• Origin of Steel Industry
• A Bulk-reducing industry
• James Watt
• Henry Cort
• Abraham Darby
• Henry Bessemer
Why do Industries have Different
Distributions?
• U.S. Steel Industry
• Iron Ore in the Mesabi Range in Minnesota
• Steel mills in Pittsburgh, Cleveland,
Toledo, and Detroit
• Later, more mills in the Mid-west
• Recently more have been built in Los
Angeles, Baltimore, and Trenton, New
Jersey
• Steel industry is changing in the U.S.
Why do Industries have Different
Distributions?
• Proximity to Markets
• Bulk-Gaining Industries
• Soft Drink Bottling
• Fabricated metals and machinery
• Televisions, Refrigerators, Air
conditioners, Cars, Motorcycles
• Single-market manufacturers
• Perishable Products
• Food, newspapers, etc.
Why do Industries have Different
Distributions?
• Ship, Rail, Truck, or Air
• Ship – Slow but Cheap
• Rail – Longer distances
• Truck – short distances
• Air – Quick but Expensive
• Break-of-Bulk points
• Transferring goods from one mode of
transportation to another costs money
Situation Factors Activity.
Answer the following on the back of the map.
1) What raw materials do you need to make your
product?
2) Where are you going to get your raw materials?
3) Is yours a bulk-reducing or a bulk gaining industry?
Explain.
4) Where are the markets you are going to sell to?
5) How are you going to get your product to the markets
are cheaply as possible?
Boat costs 20$, Train costs 40$, Truck costs 50$ per
load.
6) Draw a picture of a factory where you want your
factory.
7) Explain how come you put the factory in that location.
Why do Industries have Different
Distributions?
• Site Factors
• Labor
• Labor-intensive industry
• Not the same as a “High-Wage Industry”
• The textile industry is labor intensive,
requires less skilled, low-cost workers
Why do Industries have Different
Distributions?
• Labor Intensive Example: Textile production
• Textile and Apparel Spinning
• Making thread was done by women
• A “Cottage Industry”
• Making Thread has changed since 1768
Why do Industries have Different
Distributions?
• Labor Intensive Example: Textile production
• Textile and Apparel Weaving
• Weaving requires more labor than
Spinning
• LDCs produce much of the world’s
fabric
• China and India dominate fabric
production
Why do Industries have Different
Distributions?
• Labor Intensive Example: Textile production
• Textile and Apparel Assembly
• Four products: Garments, carpets,
home products, and industrial uses
• The sewing machine made clothes
easier to put together
• Different locations produce different
types of clothing.
Why do Industries have Different
Distributions?
• Land
• Land is critical for production
• Not all land is good
• Land near water is/was considered the
best
• Capital
• Finances help create the business
• Often businesses pop up close to
financial institutions
• Loans can help LDCs manufacturers
Where is Industry Expanding?
• Interregional Shifts in Manufacturing
• United States
• Before 1970, manufacturing was
predominantly in the Northeast
• After 1970 the shift has been to the
West and South.
• Right to Work laws
• What do the West and South provide?
Where is Industry Expanding?
• Interregional Shifts in Manufacturing
• Western Europe
• Shift from the northwest to the east and
south
• European Union assists regions with
lagging industrial development
• Spain
Where is Industry Expanding?
• New Industrial Regions
• Asia
• China
• Thailand
• India
• Latin America and South America
• Mexico
• Brazil
• Central Europe
• Poland, Czech Republic, Hungary
Why are location Factors
Changing?
• ATTRACTION OF NEW INDUSTRIAL
REGIONS
• Proximity to low-cost labor
• US, located near immigrant centers
• Location to interstate highway system
• Cost in wages
• Outsourcing
• Transfers jobs to LDCs
Why are location Factors
Changing?
• RENEWED ATTRACTION OF TRADITIONAL
INDUSTRIAL REGIONS
• Proximity to skilled Labor
• “Fordist” workers – No education
necessary
• “Post-Fordist” workers – Need skills
• Teamwork
• Problem Solving
• Leveling
Why are location Factors
Changing?
• Just-in-Time Delivery
• Reduces the amount of money tied up in
wasteful inventory
• Must locate factories near suppliers
• Disruptions can be a problem
• Labor unrest
• Acts of god
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