EMPLOYMENT & INDUSTRIES TOPIC THREE

Transcription

1 EMPLOYMENT & INDUSTRIES TOPIC THREE De La Salle College Geography Department Ms.Diane Sammut

2 We will be focusing on... Page Industrial sectors 3 Employment structure 6 Industrial system 8 Locational factors 10 Changing industrial location 13 Iron and steel industry 14 The car industry 16 High-tech industries 20 Newly industrialised countries (NICs) 23 Glossary 25 2

3 Industrial sectors Industry is classified into different sectors; primary, secondary, tertiary and quaternary. The quaternary sector is sometimes included with the tertiary sector, as they are both service sectors. Primary industries are those which extract raw material directly from the earth or sea. Secondary industries are those that take the raw materials produced by the primary sector and process them into manufactured goods and products. Examples of secondary industries include heavy manufacturing, light manufacturing, food processing, oil refining and energy production. The tertiary sector is also called the service sector and involves the selling of services and skills. They can also involve selling goods and products from primary and secondary industries. Examples of tertiary employment include the health service, transportation, education, entertainment, tourism, finance, sales and retail. A steel worker Surgeons The biggest area of expansion in the tertiary sector in has been in financial and business services. The quaternary sector consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields). Scientists 3

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5 ACTIVITY 3.1 Matching industries a) Work with a partner, study the sets of words in the table. b) Now decide which word/phrase from each set is the odd one out and cross it out. Discuss with your partner why it is the odd one out and what connects the other two words/phrases. c) Find another word/phrase from the whole table to add to the last column for each set. The three remaining words should belong to the same industrial sector. d) Come up with some more sets to try out with your partner. For each set list two words from the same industrial sector and one which has nothing to do with the other two. Ask your partner to find the odd one out. e) Now sort all the words in the table under the headings : Primary, Secondary and Tertiary in the empty PRIMARY SECONDARY TERTIARY 5

6 Employment structure The employment structure of a country shows how the labour force is divided between the primary, secondary and tertiary sectors. Different countries have different employment structures. The employment structure of a given country can tell you quite a lot about its economy. In the richest countries, for example, there will usually be more people working in the tertiary or quaternary sector than in the primary and secondary sectors. In the poorest countries, there tend to be more people working in the primary sector than in either the secondary or tertiary sectors. Look at the diagram below. Based on the employment structure, which countries do you think are the richest and poorest? Note that the quaternary sector has been included in the tertiary sector. 6

7 ACTIVITY 3.2 Changing employment structures 1. What do we understand by employment structure? 2. How does employment structure show whether a country is rich or poor? 3. In which kind of employment were most people engaged in the 1800s? 4. How did employment structures change later in 1900s? Why? 5. How did farming and industry change in the 20th century? 6. How did all these changes affect developed countries? 7

8 Industrial system Because industry nearly always involves the making or creation of something, it is often looked at as a system. The three main parts of the system are: Inputs Processes Outputs A very good example of an industrial system is the car manufacturing industry, like the Rover factory at Longbridge in Birmingham. This is actually more of an assembly industry as most of the parts are made elsewhere and then brought to Longbridge to be put together. Opened in 1905, by the late 1960s Longbridge employed around 25,000 workers, building cars including the original Mini. In the Second World War, the main plant produced munitions and tank parts, while the nearby East Works of Austin Aero Ltd at Cofton Hackett produced Short Stirling and the Hawker Hurricane aircraft. 8

9 ACTIVITY 3.3 Draw a system Draw a systems diagram for the following industries : A factory making chocolate products. Include the following inputs, processes and outputs: cocoa beans, money, chocolate drinks, raisins, packaging, sugar, nuts, flavouring, wrapping, tasting, chocolate bars, chocolate boxes, milk, packaging, profit, labour, electricity, processing. A factory producing clothing. This time try to come up with items for each part of the industrial system yourself. 9

10 Locational factors Many factors influence the location of industry. For example, initially, in the United Kingdom industry was fairly closely tied to where the raw materials were, in particular coal for power. Nowadays, the change from heavy industry (manufacturing large and heavy articles) to light industries (manufacturing small or light articles) or footloose industries (can be located at any location) has meant that industries can locate anywhere and so other factors, such as communications links and government policy, become far more important. Location factors are easily divided into two sections: physical factors and socio-economic (human) factors. A general rule is that the physical factors were the primary influence over the location of the older industries in most places, whilst the economic ones are increasingly important in industrial location now. PHYSICAL FACTORS Heavy industry required large amounts of bulky raw materials, which were very costly to transport, and so the industry located close to them. Initially, industry had to locate right beside its power source. Water power was used at first, and then the burning of coal produced steam power. Both sources of energy restricted where industries could locate, as they had to be beside a suitable river or near the coal field. Now, industries can gain their power from the National Grid and so power does not really influence location a great deal. Usually, flat land is the most essential thing to find. Most industries also try to find areas where there is room to expand once production has become successful. The site of the new factor needs to be accessible, so that importing of raw materials and exporting of finished products is easy. 10

11 SOCIO-ECONOMIC FACTORS Very important to any industry. Companies cannot set up their chosen industry without investment of money. This may come from private sources or from the government. Governments can greatly influence the location of industry, by giving tax incentives, cheap rent and other benefits to companies locating in certain areas of the country. Often these are places, which the government wants to develop economically. Government policy also lead to the closure of many of the heavy industries in the United Kingdom, such as numerous coal mines and ship building yards due to pollution policies. Very important to old, labour-intensive industries. This is why many of them located near cities, so that there was a huge pool of potential workers close by. With the growth in car ownership, and industries becoming more mechanised labour supply is not such an important factor for most industries. In the last 19th Century the market for most industries would be fairly local. Into the 20th century the market widened with improved transport technology. Now, the market for many companies is a global one. 11

12 ACTIVITY 3.4 The best location For the two factories below describe the factors affecting their location. The boxes explain what each factor refers to. Name the type of raw material and where is come from. Raw material Transport Describe the type of transport used. Where is this product sold? Power supply Market Name the type of power supply needed. Site Labour Where do workers come from? How many are needed? Describe the type of land needed. Raw material Transport Power supply Market Pharmaceutical products factory Site Labour 12

13 Change in industrial location INDUSTRIAL LOCATION WITHIN EUROPE In 2004 eight Eastern European countries joined the EU. One of these countries was Poland. This resulted in workers migrating from Poland to the UK for jobs, sometimes in low skilled manual jobs such as fruit picking. The expansion of the EU has also led to some companies moving out of the UK. Twining's Tea and Cadburys Chocolate are two examples of firms moving production from the UK to Poland WORLDWIDE INDUSTRIAL LOCATION Factories based in countries such as India and China have around 25% lower operating costs than the UK. There is growing demand for cheap manufactured goods such as clothing and electronics. Both China and India have a large labour force to provide workers for the factory. They also have a plentiful supply of energy These countries also have fewer regulations, which make it cheaper for a factory to produce goods. Firms which have a choice of location are attracted to areas where they can make more profit. China is now an important manufacturing industry producing a large share of the world's electronic goods, clothes and shoes. Many call centres for insurance companies and banks are also now located in countries which have cheap but skilled labour. 13

14 Iron and steel industry Britain was the first country in the world to become industrialised. After the discovery that coal could be used to produce steam and steam could be used to work machines, most of Britain s industries grew at coalfields. The most important industry became the production of iron and steel. Three raw materials are needed to make iron and steel : 8 tonnes 4 tonnes 1 tonne 1tonne Coke from coal used to Iron ore contains Limestone is added to Steel was used to make smelt (melt) the iron impurities such as help separate the pure ships, trains, bridges ore. carbon iron from the impurities and textile machinery. leaving the steel behind South Wales has experienced both growth and decline as an industrial area. During the 19th Century Southern Wales became a vitally important industrial area, for both iron and steel production. The steep valleys, with their fast flowing rivers, provided power and transport. The hills were rich with raw materials, such as coal, iron ore and limestone, and the area was close to the ports of Cardiff and Swansea. was more profitable. The natural resources needed were the same. By the 1990's only two steelworks were left in South Wales, and both of them were on the coast. The resources had run out, only one coal-mine remained working and the many small works in the valleys had closed down, causing huge social problems. In 1860 there were over 30 iron works in the valleys of South Wales. They provided vital employment for the local villages, which became almost solely dependent on the new industries. During the next 40 years improvements in the smelting process, meant that the production of iron was replaced by steel manufacture, which 14

15 The new works were integrated steel works, which imported their raw materials from abroad. These aimed to make the industry more efficient and competitive in a growing world market. Not only is there competition form other countries but also form other materials that are increasingly being used instead of steel. Materials, such as aluminium and plastics. The coal and iron ore deposits of South Wales have long since run out or become too costly to get at, so both of these raw materials are imported from places such as Africa and South America. So what makes Port Talbot such a good site for steelworks? An example of one is the integrated steel works at Port Talbot. Opened in 1954, it is an integrated steelworks, which is one in which all processes of the steel making industry occur under one roof. 15

16 The car industry As raw materials are used up, and as transport improves, then modern factories tend to locate in areas where many people live. This is mainly because present-day industries need large markets in which to sell their goods. The car industry is an example of an industry that is building new factories near to markets. A modern car consists of many small parts. Each part is made in its own factory. If the factories making theses parts are all close together then it is easier and cheaper for the car manufacturer to assemble (put together) all of these parts. If large towns are nearby then workers from these towns can make and assemble the parts and, hopefully, buy many of the finished cars. Transport is important for moving car parts, assembled cars and workers. Today industrial growth is more likely those areas where there are most people. In these places new factories are opening, jobs are easier to get, and more care is taken of the environment. 16

17 In the UK foreign car producers have been doing well in Britain. As a result of high foreign direct investment, Britain has a wider range of car manufacturers than anywhere else in Europe. Eight large brands are made in Britain along with Rolls-Royce, Bentley along with Morgan and Lotus. In 2003, the motor vehicle industry (vehicles and parts) accounted for just over ten per cent by value of all UK manufacturing, up from 7.8 per cent in As large employers, the big car companies are of great economic importance in the regions in which they are located. Investment has allowed the Toyota Burnaston plant to produce cars at the rate of one every 45 seconds, compared with 57 seconds previously. Toyota can now also move from raw steel to completed car in just 19.5 hours. Eighty per cent of production is exported. This is one factor that can affect profits is the level of the euro against the pound. If the euro strengthens against the pound, it makes British-made cars cheaper for people in other countries to buy, leading to an increase in exports. Nissan s Sunderland factory however, remains the most efficient in Europe. It is the largest plant in the UK. The considerable level of foreign direct investment in car manufacturing in the UK means that Britain has a wider range of car manufacturers than anywhere else in Europe. As a result, Britain remains one of the world s biggest car exporters and is poised to overtake Germany as Europe s biggest car exporter. 17

18 Toyota Burnaston plant Reasons for locating Toyota at Burnaston ACTIVITY 3.5 Toyota is Japan s largest car company. In the early 1990s it decided to build a new car manufacturing plant at Burnaston near Derby. The plant opened in 1992 and in 2001 was producing 200,000 cars a year with a workforce of 3,300 people. Most Toyota cars are sold in the UK and Europe. Some are even transported to Japan to be sold there. Toyota uses a just-in-time system of manufacture where components (car parts) are supplied to the assembly line just minutes before they are needed. Expensive parts do not have to be stored on site so costs are reduced. Just-in-time needs a good transport system for it to work. 18

19 The multiplier effect The growth of Toyota also created a multiplier effect. This is when the success of one industry leads to the growth of other industries. 19

20 High-tech industries High-technology of high-tech industries make products such as microchips, computers, mobile phones, pharmaceuticals(drugs) and scientific equipment. They have been the growth industry of recent years. High-tech companies use the most advanced manufacturing methods and they put great emphasis on the research and development of new products. They employ highly skilled and inventive workforce. Most are huge organisations with offices and factories throughout the world. For example the UK electronics industry is controlled almost entirely by foreign companies, mainly from Japan and the USA. Such industrial regions in Britain have tended to grow up along main communication routes. The best example of this is the "Sunrise Strip", which takes in the area around motorways such as the M11, M23, M3 motorways and, most importantly, the M4 motorway. These industries are described as being footloose. Although they do bring prosperity to regions, the new industries actually employ few people in comparison to the older, declining, heavy industries. 20

21 As access to raw materials is relatively unimportant nowadays, location, although dominated by communications considerations, also can increasingly take into account the social needs of its employees. Thus climatic, scenic, health and entertainment factors have to be included. In turn the industries try to locate near to places where a skilled workforce could be employed, such as around the university towns for example Oxford or Cambridge. SCIENCE AND BUSINESS PARKS Firms that make high-tech products often group together on pleasant newly developed science or business parks. Science parks are areas of industry that have grown up on greenfield sites outside of major cities around the world. The land is less costly than in the cities and the access to transport routes is a prime consideration in their location. Often, science parks have a large amount of green land to try to make it as pleasant a working environment as possible. They usually have direct links with universities. Business parks do not have links with universities but usually include superstores, hotel and leisure centres. There are many more business parks than science parks. 21

22 Greenfield sites Possible disadvantages at greenfield sites : 22

23 Newly industrialised countries (NICs) There are a number of countries around the world that can be accurately described as Newly Industrialised Countries (NIC's). They all share the same characteristics, and one of the best examples is South Korea. There are three stages to the development of an NIC, from its traditional society to a developed world society. These are shown on the diagram and described below. The time frame for the whole process can be as little as 30 years. South Korea is one of the countries in south-east Asia described as being part of the tiger economies (economies which undergoes rapid economic growth, usually accompanied by an increase in the standard of living). The others are Taiwan, Singapore and Hong Kong. NIC's share the characteristics of being: An increasing exporter to the world market, usually by copying existing products and then reproducing them for a much cheaper price. Rapid growth in the manufacturing sector, which results in far more exports. TRADITIONAL SOCIETY Most industry is labour intensive, concentrating on small cottage-style traditional industries, using local raw materials. Examples could include food processing or textile manufacture. Often, the majority of people are still in the primary sector, doing things such as farming. There is little technology and most people have very little money. IMPORT SUBSTITUTION INDUSTRIES The country decides to promote its own industries. New companies copy products from well-known companies, and then make them for a far cheaper price. The country stops any similar products being imported into the country. This is aimed at protecting their own companies whilst they grow. Example industries are car manufacture, computer manufacture and the manufacture of other electrical goods, such as hi-fi's. EXPORT ORIENTATED INDUSTRIES Once the new companies have become established in their own country they are launched into the world market. These industries are now using high technology and aimed at making a big profit. The GDP of the country starts to rocket, often growing at well over 5% per year, which is an amazing rate. The country is now described as being an NIC. 23

24 The success of the South Korean economy has brought significant benefits to its people including: In the future South Korea is probably going to focus on more hi-tech industries (quaternary sector) like electronics and pharmaceuticals. To do this the government is investing heavily in education, technology and supporting R&D. South Korea is also in an excellent position to exploit the nearby growth markets of China, India, Indonesia and Vietnam. However, South Korea is also likely to experience some problems including: 24

25 Glossary Assembly plant Business park Economy Employment structure Footloose industry Foreign investment A factory where large items such as cars are put together, usually using parts which have been made in other factories. A group of new offices or modern factories built in pleasant surroundings at the edge of the city. the state of a country s production and consumption of goods and services and the supply of money. How the labour force of a country is divided between the primary, secondary and tertiary sectors. An industry that is not tied to raw materials and so has a wide choice of location. When a company from one nation invests in ownership of a company based in another nation. Greenfield site An area of land that has not previously been built upon. Heavy industries The manufacture of goods that require large amounts of bulky raw material. High-tech industries Industry Industrial system Industries that use advanced techniques to make high-value goods, ex. computing and biotechnology Any type of econimic activity or employment that produces goods or provides services. A set of things working together as parts of a procedure in which something is done. Light industry The production of high-value goods such as cars and fashion clothing. Market A place where raw materials and goods are sold or a group of people who buy raw materials and goods. Manufacturing The process of making (something) on a large scale using machinery. Newly industrialised countries (NICs) Countries mainly in Asia that have undergone rapid and successful industrialisation since the early 1980s. Raw materials Natural resources that are used to make things. Redevelopment Attempts to improve an area. Science park An estate of modern offices and high-tech industries having links with universities. 25