Industrial production began long before the Industrial Revolution

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Caren Spencer
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3 Industrial production began long before the Industrial Revolution Goods and products were made in numerous places Most interesting relationship was Britain & India (their colony) India s products became so good that Britain tried to cut off Indian imports Commercial companies either started or urged European colonialism in many places

4 1700s New energy sources emerged (coal) New machines improved efficiency (steam engine) Late 1700s/Early 1800s Flow of capital began from the colonies Increased capital led to increased investment Which led to an invention boom Coal was used to smelt iron & in making cast iron Steam engine led to high speed thread spinning; as well as the emergence of the railroad & faster ocean shipping

5 Flow of Capital into Europe, 1775 Needed flow of capital in order to fuel the industrial revolution.

6 Britain was really the only country to initially benefit from these innovations Held a monopoly over certain goods Was the only continent to really possess the skills necessary to make this machinery The first manufacturing plants were built close to coal fields & close to a canal or river travel system Eventually this manufacturing development diffused eastward in Europe to places like Germany Consequently many cities emerged as major port cities none more so than Rotterdam in the Netherlands

7 Diffusion of Industrial Revolution

9 Many location theories exist These are theories that try to predict where businesses will or should be located These are much more complicated than von Thunen s model Von Thunen s work focuses on primary economic activities(farming, sales of agricultural products/meat/dairy/etc) Location theories try to include all economic activities(secondary, tertiary, quaternary, quinary) Assumption is that each company tries to maximize their advantages in an effort to increase profit

10 Examples of these assumptions/goals: Decrease production cost Decrease energy usage Decrease labor cost Decrease time of transport Fancy term is friction of distance, which means that as distance increases, the time & cost will increase Picking a location that allows for easier production & transport Picking a location where resources are plentiful These are aspects of von Thunen s model as well But again, his focus was on agriculture

11 Theory #1: Alfred Weber s model--- Least Cost Theory His model explains why manufacturing plants are placed where they are(his model is to secondary activities as von Thunen s is to primary activities) The location of a manufacturing plant is based on the owner s desire to minimize three categories of costs /Unit%207/weber.htm

12 Three categories 1)Transportation---site must create the lowest possible cost of moving raw materials TO the factory and finished products FROM the factory to market 2)Labor---cheaper the labor the better 3)Agglomeration---means the more companies & businesses that are nearby means the more assistance they can provide Sometimes too much agglomeration can lead to higher rents, rising wages nearby and other problems---some factories therefore leave those places(this is called deglomeration )

13 A major element of Least Cost Theory is weight How much do the resources weigh? How much does the finished product weigh? If there are multiple resources, which one weighs more? All of these things have a huge impact on manufacturing plant placement

15 Theory #2: Harold Hotelling s model Focused on the issue of locational interdependence Location of an industry cannot be understood without reference to the location of other industries just like it #1 goal is to maximize sales ml

16 The Hotelling Model

17 Added the spatial influence of consumer demand and production costs to calculating manufacturing plants

18 These major models, along with others, try to explain where industries are located Before the 1950s and 1960s, the major costs for industries were transportation costs of raw materials & shipment of finished products Therefore, most manufacturing areas were close to raw materials & transportation routes Four major ones were initially Western/Central Europe, Eastern North America, Russia/Ukraine & East Asia

23 One major additional cost to transportation is called break-of-bulk point cost Costs of transporting cargo from one mode of transportation (like a ship) to another form (like a truck or train) BREAK INTO GROUPS EACH GROUP READS ABOUT A SECTION AND TEACHES THE CLASS Group 1: 390 (Western & Central Europe to where it says North America) Group 2: (North America to where it says former Soviet Union) Group 3: 395 (The Former Soviet Union to where it says Eastern Asia) Group 4: (Eastern Asia)

THE INDUSTRIAL REVOLUTION

THE INDUSTRIAL REVOLUTION 1700-1900 WHAT IS THE INDUSTRIAL REVOLUTION? The Industrial Revolution refers to the time period when there was a huge increase of machine-made goods Images of Industrialization