industryaphg spring 2015. industrialization what is it?what is it? where?where? why?why? why...
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Industry
APHGSpring 2015
Industrialization
•What is it?•Where?•Why?
•Why care?
What 2 things were needed in order to manufacture products at the
beginning of the Industrial Revolution?
1.Close access to raw materials2.Ability to move materials
(waterway)
Why big cities like London and Paris?
Is this true today?Would you add any other
factors?
Economic Classification
• Production / Consumption / Distribution
• Sectors – Primary – Secondary – Tertiary – Quaternary
5
Industrialization is the process by which economic
activities evolved from producing primary goods to factories that mass-produce
goods.
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Britain Industrializes
Wealth became a sign
of virtue instead of kinship.
Western European
Nations and the US
followed Britain
The Industrial Revolution• Pre-Industrialization: what did
the Revolution change?– People had made goods for
thousands of years before IR• things made slowly (low
productivity), all by hand• workmen handled all
facets of production > different quality goods• guilds created production
standards, but prices were high
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Before the Industrial Revolution
There were industrial centers before the late 18th Century but it was isolated. Most industries
were cottage industries.
Examples:Chinese Silk Factories
Metal Workshops in India
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The Early 18th Century
Early factories in Great Britain during the 18th Century were run by water running down slopes.
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The Most Important Invention
In 1769, James Watt built the first efficient steam engine. This was the most important invention to the Industrial Revolution.
Assembly Line Production
• 1920’s– Henry Ford – Assembly Line Production – Interchangeable parts –Mass Production • Division of Labor
New Industrial Concepts
• International Division of Labor
• Just in Time Production
Time-Space Compression• Just-in-time delivery
rather than keeping a large inventory of components or product, companies keep just what they need for short-term production and new parts are shipped quickly when needed.Two issues can result from reliance on just-in-time delivery: labor unrest and “Acts of God”
• Global division of labor corporations can draw from labor around the globe
for different components of productionThis labor can be skilled or unskilled.
Current Industrial Patterns
• Develop faster / Richer?• Levels of Development –Material condition of people – Everywhere / some level of development
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Diffusion of the Industrial RevolutionGreat Britain
Belgium/France (late 1700s)
The United States (1790s)
Italy, Netherlands, Russia, Sweden (late 1800s)
Asia, Middle East and Africa (Mid 20th Century)
The United States entered the IR later than Belgium and France but expanded more rapidly.
Most of Europe came late to the party because of revolution and strife (ie. French Revolution, Napoleonic Wars)
The Middle East and Africa entered the IR because of WWI and the need for oil.
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Why do you think that some places were affected by industrialization while others were not?
Diffusion to Mainland Europe• In early 1800s, innovations diffused into mainland
Europe.• Location criteria: • proximity to coal fields; • Connection via water to a port• Flow of capital
Later Diffusion•In late 1800s, innovations diffused to some regions without coal.• Location criteria:• Access to railroad• Flow of capital
Industrial Regions
The world’s major manufacturing regions are found in North America, Europe, and East Asia. Other manufacturing centers are also found
elsewhere.
Industrial Areas in Europe
Industrial Areas in North America
Manufacturing Centers in East Asia
Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast.
What is the hearth? What is diffusing?What historic patterns can you identify?
EXIT SLIP:1. Why was Great Britain the first country to become industrialized? 2. What changes occurred with the steam engine, new machinery, and the factory system?
MUDDY WATERS…What idea/concept did you not understand from today’s lesson?
Can you predict where a factory should locate?
• What is the goal of any factory? Profit = Price - Costs• Assuming:– Labor cost the same and is available anywhere– There is only one market– Topography is flat– Transportation costs are a direct result of weight
• Where would you put a factory?
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• Develops as transportation improves.
• Less dependent on location
Secondary Industry
• Develops around natural resources.
Primary Industry
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Secondary Industry Locations
Variable Costs
Friction of
Distance
Distance Decay
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Situation Factors• Transportation Issues• Bulk-Gaining, Bulk Losing
Site Factors• The cost of Land, Labor, and Capital• Climate• Access to Amenities
Situation factors
• Inputs– Heavy, bulky, fragile – locate near the
inputs• Known as Bulk-reducing• EX. Copper, steel, canned tomatoes
• Outputs– Heavy, bulky, fragile – locate near
market• Bulk-gaining• Beer, glass, concrete
Transportation Factors
• Methods– Ship (ocean, lake, river)
• Very Low cost, very slow, long-distance, non-perishables
– Rail• Low cost, slow speed, long/med. Distance
– Trucking• High cost, mod to high speed, any dist., very flexible
– Air• Very high cost, very high speed, med/long dist.
– Pipeline• Very low cost, LIQUIDS!
Types of TransportationMode of
Transportation Advantages DisadvantagesTrucks •Can go anywhere there are roads
•Fair amounts, large distance, relatively quickly
•Weather Delays•Traffic•Fossil Fuels•Maintenance
Trains •Efficient and Cost-effective•Immense amounts long distances
•Inflexible routes•Break-of-bulk points needed•Can’t cross oceans
Airplanes •Fastest means•High flexibility
•Most expensive•Break-of-bulk points needed•Weather delays
Pipelines •Highly efficient ways to move liquid and gas•Very safe delivery method
•Limited to gas and liquid•Expensive to build•Costly to move a pipeline
Ships •Most energy efficient •Slowest method•Need access to waterway•Break-of-bulk points needed•Weather delays and Port costs
Site factors
• Physical characteristics of a place.• Different industries have different needs.• Availability and cost of:– Land (lg areas – Airplane manufacturing)– Power (lots of electricity or fuel – Aluminum)– Labor (unskilled – electronics, skilled – research/dev)– Capital (Money, money, money…money!)
• Footloose Industries – – Can locate anywhere (Diamonds, computer chips -
YUMM)
Location ModelsWeber’s Model
Manufacturing plants will locate where costs are the least (least cost theory)
Theory:
Least Cost Theory
Costs: Transportation, Labor, Agglomeration
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
Manufacturing plants choose locations where they can maximize profit.
Theory:
Zone of Profitability
http://ed.ted.com/lessons/why-do-competitors-open-their-stores-next-to-one-another-jac-de-haan#watch
MARKET
Resource 1 Resource 2
Weight Gaining Industry
Weight Reducing Industry Footloo
se Industr
y
What is this model called?Weber’s Least Cost Theory (Industrial Location Theory)
Weber’s Least Cost Theory • Factory Location – Least Cost to the
Factory / Company
• Assumptions– Cost of
Transportation • Weight • Distance
– Maximize Profits • Minimize Cost
Weber’s Least Cost Theory
• Assumptions –Markets are fixed– Labor is fixed– Uniform Landscape – 4 Main Drivers • Transportation • Labor • Agglomeration • Deglomeration
Weber Key Ideas
• Friction of Distance:The greater the weight the greater the costThe greater the distance the greater the costThe greater the time the greater the cost (think
veggies!)
• Focused on Costs : Variable Costs!Profit = Price – Costs
Hotelling’s Model Locational Interdependence
• Variable Revenue:– Maximize Profits not minimize costs!
Profit = Price – Costs Find the location that provides the best profit
…and where other industries are located.
Can you create a Spatial
Monopoly?
Losch Model(pronounced laesch)
• You can look at one point…but maybe a bunch of points will work.
• And things can change…replace labor with machines? Increase transport costs but reduce land rent?
Time to apply some theories…Using Weber, Hotelling, and Losch…
Where would you sell doughnuts in the morning for OHS?
Use the school map provided.
What is a Post Industrial World?What does it look like?• Tertiary, quaternary, and
quintary sectors.• Deindustrialization?• Increasing Mechanization• Multinational Corporations• Post-Fordist Production• Global Division of Labor• Global Production Chain• Can outsource services –
Who prepares the food and cleans the place?
Where is it located? Core countries still Sunbelt in USWith Services…what is
more important? ResourcesMarkets
Why call centers in India?
What is a high tech corridor?
(IL Research and Technology Corridor…Silicon Prairie?)
Why Are Location Factors Changing?
• Attraction of new industrial regions– Changing industrial distribution within MDCs• Interregional shift within the United States– Right-to-work laws– Textile production
• Interregional shifts in Europe– Convergence shifts– Competitive and employment regions
– Changing distributions– Modern Production• Outsourcing - moving individual steps in the
production process (of a good or a service) to a supplier, who focuses their production and offers a cost savings.• http://www.metatube.com/en/videos/10420/The-Simp
sons-India-Outsourcing/• Offshore – Outsourced work that is located outside of
the country.
Deindustrialization• a process by which
companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment
Abandoned street in Liverpool, England, where the population has decreased by one-
third since deindustrialization.
Key Question
What is the Service Economy, and Whereare Services Concentrated?
Service Economy• Service Industry
• Economic activity associated with the provision of services – such as transportation, banking, retailing, education, and routine office-based jobs.
Geographical Dimensions of the Service Economy
• New influences on Location:
- information technologies- less tied to energy sources- market accessibility is more relevant for some and less relevant for others because of
telecommunications.- presence of Multinational Corporations
Wal-MartRequires producers of goods to locate office in the Bentonville, Arkansas (Wal-Mart’s headquarters) area in order to negotiate deals with Wal-Mart.
Proctor & Gamble put their office in nearby Fayetteville, Arkansas.
How does the presence of these companies in the region change the region’s economy and its cultural landscape?
NikeHeadquartered in Beaverton, Oregon,. Nike has never produced a shoe in Oregon. Beginning in the 1960s, Nike contracted with an Asian firm to produce its shoes.
Skopje, Macedonia
The swoosh is ubiquitous, but where is the shoe produced?
Nike has a global network of international manufacturing and sales
High – Technology Corridors• An area designated by local or state government
to benefit from lower taxes and high-technology infrastructure with the goal of providing high-technology jobs to the local population.
eg. Silicon Valley, California
• Technopole – an area planned for high technology where agglomeration built on a synergy among technological companies occurs.eg. Route 128 corridor in Boston
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