Chap 11: Industry

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29 Νοε 2013 (πριν από 3 χρόνια και 6 μήνες)

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Chap 11: Industry

Envs 204

Industry
--

Defined

INDUSTRY
--

Production of goods, especially
through manufacturing techniques, and a group
of firms with similar technical structures for
production.



a.
Method of adding value such as man
-
made
value, from motive force,or other outside
source to create a final product

b.
Includes factory system, limited stock
companies, integrated activities, specialization,
scale economies,...

11.1 Industrial Revolution


“The root of the Industrial Revolution was
technology involving several inventions
that transformed the way in which goods
were manufactured”


Unprecedented expansion of output and
productivity


Substantial increase in standard of living


Resulted in a Demographic Boom and
Transition (
In the Western World
)

http://www.youtube.com/watch?v=aO3AW0JAHmU



2minute overview

http://www.youtube.com/watch?v=E_tFFQyEu_Q&feature=related



2 minute
view of child labor with musical background

http://www.youtube.com/watch?v=JhF_zVrZ3RQ

BBC 1 hour documentary

Industrial Revolution


Resulted in and from new social,
economic, and political inventions and
developments


not just industrial ones


Changes were gradual


Diffused outward across the globe from
England after 1750


Diffusion continues today

Change & Impacts

1. Industrial Revolution
--

completely
changed

a)
How goods were produced.

b)
How economy was organized

c)
How people worked

d)
How goods were consumed

-

formerly “folk” based activities became
“economic” based (much like the change
from folk to popular customs)

Hearth Areas

2. Hearth Area
-

England
after 1750's

a. Key
Invention
-

Steam
Engine

--

non
-
natural
power
source

Diffusion

Diffusion to and impact on other industries


Coal

--

key new input, why??? Hint birth of the
“energy slave”


Iron Production

--

vastly increased why???


Transportation & Spatial Interaction

--

both
infrastructure and technology changes the world’s
spatial geography (resulted in a
time
-
space
compression



speeds up diffusion)


Textiles



becomes first leading industry


Engineering



emerges from the inventors of these
new technologies


Food Processing



necessary input to support urban
labor concentration

Diffusion of Railroad Technology


Time
-
Space Compression


Hierarchical
diffusion


note
nodes from
which it
spreads


Contagious
diffusion


spaces in
between nodes

Diffusion


Relocation


immigration brought new
technologies to distant locations


Also the British attempted to limit this by forbidding
skilled textile “engineers” from emigrating


Hierarchical


between Major centers of
commerce like London, Paris, Berlin, NYC


Contagious


exponential outward
expansion as everyone wants to
participate

11.2 Distribution of Industry

Tools


Hearth Area


Diffusion


Relocation


follows immigration


Hierarchical


transferred between major
metro areas


Contagious


acceptance expotential


Stimulous


principles most easily shared

11.2 Distribution of Industry

Tools cont…


Pattern


High clustering in few countries at first


Clustering apparent even at present


High density concentration = efficiency



Spatial Interaction


Space
-
Time compresion results from process

11.2 Distribution of Industry

Tools cont…

Site & Situation


both key to eventual sitting
of activities


Site Factors include: resources, labor,
capital (human and monetary), land, and
markets


China today focuses on cheap Labor


Situation Factors focus mainly on long
distance transportation routes


Coastal China today


Resources & Markets

Major Centers in Europe

Major Centers in East Asia

Manufacturing
Zones in China

Click here

Major Centers in US &
Canada

Turning to Robots for
Manufacturing click
here

http://tlc.discovery.com/videos/understanding
-
robots
-
mass
-
customization.html


11.3 Situation


Transport Costs

Think Networks for Trade


Bulk Reducing Activities


Locate near raw material


By reducing bulk final cost reduced


Example Copper smelting


Bulk Gaining Activities


Locate near final market


Add bulk at last minute


less trans cost


Example Beer production

11.3 Situation Factors

Bulk Gaining

11.4 Changes in Steel Location


1770s Near Energy Source


locate
iron/steel forges in mountain valleys
and use wood/charcoal


1850s Near Energy Source



coalfields because greatest bulk


Pittsburgh favored


1890s In between

coal and iron ore


Lake Erie sites favored


1910s Move closer to markets

as
coal requirements drop


South Lake Michigan favored


Today


foreign sites & major US
Market sites


Foreign producers lower labor cost in integrated
mills


Major markets switch to scrap iron as input and
mini
-
mills



Steel has changed from
bulk reducing to market
sensitive locations in the
USA while moving to Labor
sensitive locations
internationally

http://www.youtube.com/watch?v=_hlfqggGOZw&feature=related


Site vs Situation for Steel


1770s Near Energy Source


What was Valley Forge?


1850s Near Energy Source


What Site conditions favored Pittsburgh?


1890s In between

coal and iron ore


What Situation conditions favored Lake Erie ports?


1910s Move closer to markets

as coal requirements drop


What Site condition favored South Lake Michigan? favored


Today


foreign sites & major US Market sites


What Site conditions favors LDC Foreign producers for
integrated mills?


What Site conditions favor large urban markets like Seattle for
mini
-
mills?

Migration to lower
cost developing
nations

Side note: ownership of mills
even in MDCs also migrates to
LDCs like China and India

The Future of Steel in China and
India

5
th

Largest Company

China Recent
Trends

http://www.youtube.com/watch?v=WfApKqEWjZk&feature=related


http://www.youtube.co
m/watch?v=NUHcr3Y3
-
C0


Some Mini Mills in US & Mexico

Tend to favor Site Conditions


Locate close to
markets and scrap iron/steel sources

11.5 Auto Production

Situation Sensitive


Why?

Changing pattern
of plants to
reflect just
-
in
-
time system &
unionization

Situation based
Network of
assembly

Site based lower
cost Southern
Labor

Auto Alley: Focused on I65 and I75

Example of Just
-
in
-
time delivery and assembly

70% of the value in a car
comes from independent
suppliers

Situation:

Over time auto
suppliers and assemblers
have migrated to the center
of the country to minimize
distribution cost of final
products

Site:

Suppliers and
assemblers have also
migrated south to lower cost
labor

New Car Plant Locates in Indiana

11.6 Transport Modes

Break of Bulk Point


Place where move from one mode of
transport to another


good place to
process goods


Seaport, airport, rail yard…


Opportunity for further processing before
sending on


Example wheat from farms may be
assembled at a port for export and milled
there into flour

Just
-
In
-
Time Production


Low stockpiles at assembly plant


Multiple suppliers concentrate in same
region


Japanese automakers developed this
system due to small land area for factories


“Just in time”
example


truck
seats click here

http://www.youtube.com/watch?v=JTJLhWGVQQs



Variations based on cost & speed



Air


Truck


Rail


Boat

Mode of Transport

High

Cost

Low
Cost

High

Speed

Low

Speed

Just in time

possible

Just in case or
large stockpiles

11.7 Site Factors

Site: Three of most important
Factors


Labor



currently most important in labor
intensive industries like textiles


Land



causes industry to migrate to the edge of
urban areas


looking for “green field” sites
encouraging sprawling single floor factories


Capital



can either be locally available or from
outside


FDI



foreign direct investment


such as capital flows
to China


Venture Capital


readily available in Silicon Valley

Textile & Apparel Spinning:
Labor intensive mainly
done in LDCs

Woven Cotton: Dominated by low cost labor and readily
available raw materials in China and India

11.8 Textile & Apparel Production

Production of Men’s & Boy’s Trousers:
Higher skill then weaving, currently
migrating to LDCs

Labor
-
Intensive Industries

Labor
-
intensive Industries


Consideration


Balance of lowest cost per hour of labor
versus skills embodied in labor


And transportation cost versus timeliness of
delivery


Example cheap to make Christmas toys in
China, but if early supplies sell out difficult to
restock due to the distance

Decline in
Labor
Intensive
Clothing in
USA

Migration of
“skilled”
textile jobs
abroad

Comparative Labor Costs for
Clothing Manufacturing

Note how Indonesia could be
the next large textile producer

Notice where Pakistan
falls

http://video.google.com/videoplay?docid=7076214970057867651#docid=
-
6733564947664645042


11.9 Emerging Industrial
Regions


US Shifts


From high labor cost/protection areas to low
areas


Movement out of US


Outsourcing


China as workshop of the world


BRICS as possible future manufacturing
centers