Chapter 11: Industry The Cultural Landscape: An Introduction to Human Geography
Origin and Diffusion of industry The Industrial Revolution Industry = manufacturing of goods in a factory Shift from cottage industries to factories dispersed (cottage industry) to clustered (factories) Impact greatest on certain industries (iron, textiles, etc.) Led to increased productivity and over time an increase in the standard of living northern England/southern Scotland = Late 1700s Later continental Europe/N. Amer (1800s) other regions (East Europe, East Asia) in the 20 th century generally followed pattern of proximity to coal and iron
Diffusion of of Industry Diffused from a few MDCs to many LDCs What is the state of American manufacturing? 1/3 of manufacturing jobs lost over last decade now in jeopardy, deindustrialization similar situation in EU and Japan even Mexico is losing manufacturing jobs»early 21 st century»maquiladoras in decline???? Driven by globalization, free trade
Industrial Areas in Europe
Industrial Areas in North America
Industrial Areas in East Asia
How Do Location Theories Explain Industrial Location? Location theory: Predicting where business will or should be located Assumes: Desire to maximize advantage over competitors Maximize profit Considers Variable costs Energy supply, transport expenses, labor costs, etc. Friction of distance Increase in time and cost with distance
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilledlabor pools and technological and financial services Weber s Model Manufacturing plants will locate where costs of transportation, labor are the least and agglomeration is beneficial Theory: Least Cost Theory Location Models
Weber (Least Cost Theory)
Weber (Least Cost Theory)
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilledlabor pools and technological and financial services Weber s Model Manufacturing plants will locate where costs of transportation, labor are the least and agglomeration is beneficial Theory: Least Cost Theory Location Models Hotelling s Model Location of an industry cannot be understood without reference to other industries of the same kind Theory: Locational Interdependence
Hotelling's model: (locational interdependence/spatial competition)
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilledlabor pools and technological and financial services Weber s Model Manufacturing plants will locate where costs of transportation, labor are the least and agglomeration is beneficial Theory: Least Cost Theory Location Models Hotelling s Model Location of an industry cannot be understood without reference to other industries of the same kind Theory: Locational Interdependence Losch s Model Businesses choose locations where they can maximize profit Closely related to Christaller s Central Place Theory. Theory: Zone of Profitability
Lösch's model: (zone of profitability/market zones)
How are Situation Factors Important? Proximity to inputs Examples: Copper Steel Bulk-reducing industries End product is lighter/less bulky or easier/cheaper to transport than inputs. Locates closer to inputs
Why Are Situation Factors Important? Proximity to markets Bulk-gaining industries End product is heavy/larger than inputs Examples: Fabricated metals (cars, appliances, etc.) Beverage production Single-market manufacturers Industry suppliers Just-in-time delivery Perishable products
Beer Bottling and Breweries
Why Are Situation Factors Important? Ship, rail, truck, or air? Consider line costs, terminal costs and route flexibility Truck = most often for short-distance travel Train = used to ship longer distances (1 day +) Ship = slow, but very low costs per km/mile Air = most expensive, but very fast Locate at break-of-bulk point Place where transfer between modes takes place Minimize cost by locating processing nearby Oil refineries Less important now due to containerization
Site Factors Are Important Labor (most important site factor) Labor-intensive industries vs. capital-intensive Examples: textiles vs. autos Trend has been a shift to lower wage areas
Site Factors Are Important Labor (most important site factor) Labor-intensive industries vs. capital-intensive Examples: textiles vs. autos Trend has been a shift to lower wage areas Land Shift from urban to rural Available cheap land Environmental factors utilities
Why Are Site Factors Important?
Site Factors Are Important Labor (most important site factor) Labor-intensive industries vs. capital-intensive Examples: textiles vs. autos Trend has been a shift to lower wage areas Land Shift from urban to rural Available cheap land Environmental factors utilities Capital loans for investment, machinery, inventory
How are these factors affecting/changing the traditional distribution of industry?
Factors Changing Location Changing industrial distribution within MDCs Interregional shift within the United States Northeast/Midwest (Rustbelt) => South/West Right-to-work laws/non-union = low site costs Climate = more comfortable, less utilities = lower site costs Interstate highway system (1950s) = allows location away from urban railway hubs = shifting situation costs
Changing U.S. Manufacturing
Factors Changing Location Changing industrial distribution within MDCs Interregional shift within the United States Northeast/Midwest (Rustbelt) => South/West Right-to-work laws/non-union = low site costs Climate = more comfortable, less utilities = lower site costs Interstate highway system (1950s) = allows location away from urban railway hubs = shifting situation costs Interregional shifts in European Union Encouraged by government policy Convergence shifts toward poorer regions Competitive and employment regions receives assistance to offset job losses
European Union Structural Funds Figure 11-23
International shifts in industry Attraction of new industrial regions East Asia, South Asia, Latin America Cheap labor, pro-free trade laws, lax environmental regulations Changing distributions
World Steel Production Figure 11-24
Global Production
Apparel Production and Jobs in the United States Figure 11-26
International shifts in industry Changing distributions New International Division of Labor /Deindustrialization A process by which companies move industrial jobs to other regions with cheaper labor MDCs = highly skilled vs. LDCs = unskilled, labor-intensive Period of high unemployment in deindustrialized region» Effects unskilled workers in MDCs Interregional differences in LDCs Outsourcing» Areas connected to core developing more rapidly responsibility for production of components to independent suppliers Footloose industries industry not tied to other factors
Effects of the New International Division of Labor on LDCs Added job opportunities Positive addition to personal and national income that raises societal status, family income, etc. Gender opportunity Entry of women into work force means added income for household support, which improves the standard of living and lowers population growth rate. Child labor Use of child labor discourages further education.
Effects of the New International Wage gap Division of Labor on LDCs Increased wage gap between the local haves and have nots. Migration Migration of nationals to specialized manufacturing areas improves personal economic positions but weakens family and traditional cultural ties coastal China, maquiladoras in Mexico. Environmental Relaxation/lax enforcement invites new health ailments/problems.
Effects of the New International Division of Labor on LDCs Regional growth Location of new jobs fosters regional growth and concentration of wealth, pollution, etc. Uneven nature of growth creates a spatial gap between have and have not areas. Cultural change Westernization of production, management, etc., changes the social and cultural relationships (e.g., women in the workplace, language, cultural disruption
Renewed attraction of traditional industrial regions Proximity to skilled labor Technology corridor: area designated by local or state govt to benefit from lower taxes and high-tech infrastructure with goal of providing high-tech jobs to the local population Technopole: An area planned for high tech with agglomeration built on a synergy among tech companies Post-Fordist, or lean production More flexible work rules Teams, problem solving, leveling Just-in-time delivery = Thailand floods
Electronic Computing Manufacturing