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Industry

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Title: Industry


1
Industry
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s/LifePak20Assembly20Line.jpg
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ges/LS0464-0220copy.jpg
2
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

3
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

4
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)

5
The Industrial Revolution
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attdouble.jpg
6
Diffusion of the Industrial Revolution
  • The iron industry followed by the textile
    industry were leaders in increasing output as a
    result of Watts 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

7
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

http//www.solarnavigator.net
http//www.coalpro.co.uk/images/coalmap.jpg
8
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

http//www.ehs.org.uk/industrialrevolution/PH_Indu
stry_2.htm
http//www.ehs.org.uk/industrialrevolution/Images/
Spinning20Jenny.jpg
9
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

http//perso.wanadoo.fr/joel.puissant/fdc01/appert
.jpg
10
Diffusion from the UK
  • Britains Crystal Palace (1851) was the most
    visible symbol of Britains 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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ign/palace.jpg
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11
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/arch4443/185820and20All
20That/Old20slater20mill.jpg
12
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 Fords assembly line

13
Where is Industry Located?
  • North America
  • New England
  • Middle Atlantic
  • Mohawk Valley
  • Pittsburgh Lake Erie
  • W. Great Lakes
  • Golden Horseshoe

14
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

15
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

16
Where is Industry Located?
  • 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
  • Mid Rhine
  • UK
  • Northern Italy

17
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

18
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

19
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-InTime) TQM (Total Quality Management)
    technologies

20
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

21
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

22
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

http//www.americaslibrary.gov/assets/es/pa/es_pa_
steel_1_e.jpg
23
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

24
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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25
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

26
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)

http//www.jcommops.org/graph_ref/cargo_ship-3.jpg
http//www.flowersvic.com.au/images/air-cargo.jpg
27
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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JPG
28
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

29
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)

30
Site Factors
  • Capital
  • Manufacturers require capital to establish and
    expand their operations
  • The US auto industry located in Michigan because
    that regions 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

31
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)

32
Why do Industries Face Problems?
  • Global Problems
  • Stagnant demand capacity to produce goods has
    increased faster than demand
  • 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

33
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

34
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

35
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

36
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

http//www2.lhric.org/pocantico/earthday/reduce1.g
if
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