Industry
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Where did Industry Originate?
• Processing of raw materials and
manufacturing of capital & consumer
goods
• Industry is highly clustered in space
• The location of industry is determined by
the tension between the location of raw
materials and the location of markets
• Certain industries are attracted to certain
locations
Where did Industry Originate?
• Before the Industrial Revolution, goods
were manufactured in private homes – this
was referred to as cottage industry
• The manufacturing of goods in a factory
began in the UK in the late 1700s and was
referred to as the Industrial Revolution (IR)
• The root of the IR was the introduction of
new technology which changes the way
goods were made
The Industrial Revolution
• The IR diffused to Europe and North America in
the C19th and to the rest of the World in the
C20th
• IR was industrial, social, economic & political
• IR involved gradual changes in ideas and
technology to enable goods to be manufactured
more efficiently and cheaply in large quantities
• IR fuelled by the invention of the steam engine
(James Watt 1769)
The Industrial Revolution
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Diffusion of the Industrial
Revolution
• The iron industry followed by the textile
industry were leaders in increasing output
as a result of Watt’s steam engine
• Constant high heat is required to mill iron
from its ore – the steam engine was able
to provide the constant high heat source
• Production of iron in high quantities
transformed other industries – mining,
engineering, transportation
Diffusion of the Industrial
Revolution
• Coal was required to fuel the engine
• Hence industries started to cluster around
regions of coal deposits
• New inventions were engineered to aid the
industrial process – hence thee birth of
modern engineering and machine parts
production
• Canals were built to transport materials and
finished goods
• Eventually railways came into being
through the invention of the steam
locomotive
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Diffusion of the Industrial
Revolution
• The textile industry evolved as a result of the
invention of the spinning jenny & through large
looms
• Later bleaching techniques fueled inventions in
the chemical industry
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Diffusion of the Industrial
Revolution
• Food processing to feed
expanding urban
populations was
transformed through the
invention of canning
techniques (Nicholas
Appert) and chemical
additives
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Diffusion from the UK
• Britain’s Crystal Palace (1851) was
the most visible symbol of Britain’s
industrial power
• The IR diffused eastwards towards
Europe and westwards across the
Atlantic to North America
• Diffusion to Europe was delayed by
political instability (the French
Revolution & Napoleonic Wars) &
the unification of Germany (1870s)
• Britain also deliberately kept
industrial secrets within the UK
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Diffusion to the USA
• Industrialists were discouraged from
migrating to America
• However Samuel Slater migrated to
Rhode Island and set up a textile mill
(1791)
http://www.ou.edu/class/arch4443/1858%20and%20All%20That/Old%20slater%20mill.jpg
The IR in the USA
• The textile industry in the USA grew as a
result of the Napoleonic Wars and by 1860
the US was 2nd only to the UK
• Other industrial processes however, were
not used in the USA until the late C19th as
the US concentrated on food and lumber
• The 2nd industrial revolution occurred in
the USA – Henry Ford’s assembly line
Where is Industry Located?
North America
•New England
•Middle Atlantic
•Mohawk Valley
•Pittsburgh – Lake Erie
•W. Great Lakes
•Golden Horseshoe
North America
• New England
– Oldest region - textiles
• Middle Atlantic
– NYC-Washington DC – large consumer markets & ports
• Mohawk Valley
– Upper NY state (Hudson R & Erie Canal) – cheap hydro – steel,
food, electro-chemicals
• Pittsburgh – Lake Erie
– Coal & iron ore- iron & steel mills
• W. Great Lakes
– Detroit-Chicago-Milwalkee – consumer market, transport hub –
auto, agro-chemicals, clothing, furniture
• Golden Horseshoe (St. Lawrence & Lakes Peninsula
– St. Lawrence Seaway, cheap hydro, Canadian markets – steel,
food processing, chemicals, ship building
Changing US Industry Distribution
•Decline in N & E
•Growth in S & W
•California & Texas
•Steel, textiles, tobacco
•Petro-chemicals
•SE – Right to work
•SW – low & high tech
Where is Industry Located?
Western Europe
•Rhine Ruhr
•Mid Rhine
•UK
•Northern Italy
Eastern Europe
•Central Industrial District
•St. Petersburg Industrial District
•Eastern Ukraine Industrial District
•Volga Industrial District
•Urals Industrial District
•Kuznetsk Industrial District
•Silesia Industrial District
Western Europe
• Rhine Ruhr
– Rivers Rhine & Ruhr
– Iron & Steel & other heavy industries
• Mid Rhine
– Lacks raw materials but is centred in a major
consumer market – transportation hubs, luxury cars,
textiles & high end consumer goods
• UK
– Midlands is oldest industrial region – outmoded and
less important; SE UK new region – high tech close to
EU
• Northern Italy
– Po River Basin – textiles, cheap hydro & labour,
processing raw materials & machine parts assembly
Eastern Europe
• Central Industrial District (Moscow)
– Large consumer market; textiles & chemicals
• St. Petersburg Industrial District
– Near Baltic Sea – shipbuilding; local food processing
• Eastern Ukraine Industrial District
– Coalfields – iron & steel
• Volga Industrial District
– Petroleum & natural gas fields - petrochemical
• Urals Industrial District
– Valuable metals; fuels must be shipped in
• Kuznetsk Industrial District
– Coal & iron ore – iron & steel mills
• Silesia Industrial District
– Coalfields (iron ore is imported – iron & steel mills
East Asia
• Japan is one of the wealthiest countries because of
industrial development
• China has the 2nd largest economy after the USA
• S. Korea & Taiwan have used international trade to
become NIC (newly industrialized countries)
• Japan, S. Korea & Taiwan have few natural resources –
but has large, cheap labour markets – exports consumer
goods cheaply
• Japan has a reputation for high quality electronic which
requires highly trained workers
• Japan has furthered industrial processes through JIT
(Just-In–Time) TQM (Total Quality Management)
technologies
Why do Industries have Different
Distributions?
• To maximize profits industries must minimize
production costs
• Geographers try to explain why one location
might prove more profitable for a factory than
others
• Geographical costs include
– Situation factors (transporting raw materials to a
factory and finished goods from a factory)
– Site factors refer to the unique characteristics of a
location – land, labour and capital
Situation Factors
• To maximize profits, companies try to
locate their factories as close as possible
to suppliers and consumers to reduce
transportation costs
• If inputs are more expensive to transport
than outputs, the factory locates near
inputs
• If outputs are more expensive to transport,
the factory locates near to the market
Location Near Inputs
• Steel Industry
– Main inputs coal and
iron ore
– Steel mills located close
to the raw materials
– Integrated steel mills
processed iron ore,
converted coal to coke,
made iron into steel &
formed steel into
sheets, rods & beams
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Integrated Steel Mills in USA
• As demand for steel
grew, iron ore imported
from Canada &
Venezuela resulted in
steel mills locating near
ports
• Mills in Michigan
survived closure
because they are
located near large
markets
Mini Steel Mills in the USA
• Steel mini mills which
process scrap steel,
have located near
markets where their
major input is readily
available
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Location Near Markets
• For some factories, the optimal location is near
markets
– Bulk-gaining industries
• Soft-drinking bottling
• Brewery
• Car assembly plant
– Single market manufacturers
• High fashion
• Auto part factories (agglomeration industries)
– Perishables
• Dairy
• Bakery
• Newspapers
Transportation
• Inputs & products are
transported by
– Ship (long distances; bulky
cargo where water exists)
– Rail (long distances; bulky)
– Road (shorter distances)
– Air (most expensive; ideal
for very light, small cargo)
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Break of Bulk Point
• Transportation costs rise each time inputs or products are
transferred from one mode of transportation to another
(labour & possibly warehousing costs)
• A location where transfer is made from one mode to
another is known as a break-of-bulk point
• Ports and airports are important break of bulk points
An entrépôt port is a port
where goods can be imported
and re-exported without duties
having to be paid e.g.: Bahrain
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Site Factors
• Land
– Large areas of cheap, flat land available in
suburban or rural areas close to
transportation corridors
– Aluminium smelters locate near to sources of
cheap electricity as lots of energy is needed
to separate the aluminium from the bauxite
– Amenities already available at certain sites,
may attract new industries
Site Factors
• Labour
– Labour intensive industries locate near to
labour markets
• Semi-skilled, cheap labour is used in the textile
and clothing industry (in MDCs the textile industry
has been affected by the availability of cheap
labour in LDCs)
• Highly skilled, more expensive labour is required
for the electronics industry (outsourcing to LDCs is
becoming increasingly difficult for MDCs as more
educated work forces emerge in countries like
India)
Site Factors
• Capital
– Manufacturers require capital to establish and
expand their operations
– The US auto industry located in Michigan
because that region’s banks were more
willing to lend money than east coast banks
– Banks in Silicon Valley willing to offer loans to
computer companies, have been key to the
growth of software companies which then are
attracted to the Valley
Footloose Industries
• Some industries are able to locate wherever
they wish as they are not significantly impacted
by transportation, land, labour and capital costs
• Communications technologies make this more
and more possible e.g.: software development
and manufacture (Microsoft in Seattle)
• Optimal location might not always be possible,
so an alternative must be chosen (inertia or
history)
Why do Industries Face Problems?
• Global Problems
– Stagnant demand: capacity to produce goods
has increased faster than demand
•
•
•
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Low population growth in MDCs
Quality of products
High prices of products
Changing technology e.g.: lighter vehicles
– Increased capacity
• NICs
• Subsidized industries e.g.: steel in Europe
Why do Industries Face Problems?
• MDCs
– MDCs must protect their markets from new
competitors
– LDCs must identify new markets in order to grow
industrially
– Trading blocs
• Competition within trading blocs e.g.: NAFTA & softwood
lumber dispute
• Competition between trading blocs e.g.: NAFTA and EU
• Disparities within trading blocs e.g.: Greece, Portugal &
Ireland lack industrial investment
– Transnational corporations
• MDC HQ TNC produce goods more cheaply in LDCs
Why do Industries Face Problems?
• LDCs
– Distance from markets: wealthy consumers in
MDCs are far from manufacturers in LDCs
– Inadequate infrastructure: transportation,
energy, skilled labour, technology
– Limited domestic markets
– Dependence on raw material exploitation
– Outsourcing from MDCs to LDCs by TNCs
(profits return to MDCs)
– Political instability
Resource Depletion & Pollution
• Renewable resources are threatened if the
rate of exploitation exceeds replacement
rate
• Non-renewable resources will eventually
run out
• Industrial processes pollute land, air and
water
Solutions to Depletion and Pollution
• Sustainable development is resource use
that meets present needs without
compromising future generations ability to
meet their needs
• 3Rs
– Reduce
– Recycle
– Reuse
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