Industry: Part II
Industrialization and Chevrolet
Major Industrial Regions of the
World before 1950
Industrialization Through WWI
The four primary industrial regions:
& Central Europe
2) Eastern North America
3) Russia & Ukraine
4) Eastern Asia
Germany: 3 districts?
Italy: What area?
Spain: What area?
Major Manufacturing Regions of North America
Benefitted from overseas resources
Large coal and gas reserves to provide energy to manufacturing plants
US capitalized on industry after Western Europe destruction during WWI and WWII
Major Manufacturing Regions of Russia
Many resources throughout the vast expanse of land
Volga River provided an energy resource and transportation through canals
Regions of East
Japan imported raw
materials from it’s colonial
empire into Korea, Taiwan,
3 major belts in Japan?
Think of an industrial area where you live,
either an industrial park or a major
conglomeration of industries. Consider the
models of industrial location described in
this section of the chapter and determine
whether any of the models apply to this
How has Industrial
dominant mode of mass production
during the twentieth century, production of
consumer goods at a single site.
current mode of production with a
more flexible set of production practices in which
mass produced. Production is
accelerated and dispersed around the globe by
multinational companies that shift production,
outsourcing it around the world.
What is planned obsolescence?
Who is guilty?
Domestic Car Production in a
Due to the increasing demand for better, longer
lasting, more eye
vehicles, American consumers have fled domestic producers and found their home
produced cars that are longer
lasting, sleeker and more fun to drive.
Popular foreign cars include…Toyota Camry, Toyota Corolla, Honda Accord, Honda
Civic, Hyundai Sonata, Honda CRV and Nissan Altima. With Americans choosing
foreign automobiles , domestic producers were forced to make better, longer
lasting, more appealing vehicles that offer better gas mileage. Have they
What Americans are driving…
1) Ford F
2) Chevrolet Silverado
3) Toyota Camry
4) Honda Accord
After sales of GM vehicles plummeted and
when the U.S Government bailed out the
company, GM began developing more fuel
efficient cars and trucks in order compete with
foreign automakers such as Toyota and Honda.
Chevy’s landmark response…
Chevrolet Assembly Plants, 1955
13a: In 1955, GM assembled identical Chevrolets at ten final assembly
plants located near major population centers.
Chevrolet Assembly Plants, 2003
13b: In 2003, GM was producing a wider variety of vehicles, and production of
various models was spread through the middle of the country.
Chevrolet Plant Closures
Plant closures for Chevy in the past five years…
Grand Rapids, Michigan
If you were the CEO for GM’s Chevrolet division, what
recommendations would you make to increase sales?
in transportation and
places in the world
are more connected
than ever before.
rather than keeping a large inventory of
components or products, companies keep just
what they need for short
term production and
new parts are shipped quickly when needed.
Global division of labor
corporations can draw from labor around the
globe for different components of production.
Production of Televisions
Three key elements in television production:
Research and design
Production of televisions has shifted across
the world over time.
New Influences on the
Geography of Manufacturing
Transportation on industrial location
Development of infrastructure: containers, refrigeration
Regional and global trade agreements
WTO: ~150 countries, promotes free trade to eliminate
Proximity to Energy sources in industrial location less
Pipelines and tankers deliver fuel to far away places
2.5 million miles of pipelines in NA
Where are the Major
Industrial Belts in the
World Today and Why?
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
The former Gautier rolling mills
of Bethlehem Steel Corp. in
South East Asia
Also known as the Pacific Rim.
major industrial growth after 1950
1. Industrialization in the 1960s was state
Shanghai and Chang district
2. Today, industrialization is spurred by companies that move
production (not the whole company) to
take advantage of Chinese labor
special economic zones (SEZs).
As China’s economy
continues to grow, old
are destroyed to make
room for new buildings
East and Southeast Asia
1. Four Tigers
A map showing the Four Asian Tigers
Coming Monday, Dec. 2
What is the Service Economy,
and Where are
1. Economic activity associated with the provision
such as transportation, banking, retailing,
education, and routine office
2. As services become more developed specific
divisions are used:
complex decision making…ex?
a society in which an economic transition has
occurred from a manufacturing based
economy to a service based economy
United States, Canada, Japan, and Western Europe
of the Service Economy
New Influences on Location:
Less tied to energy sources
Market accessibility is more relevant for some
and less relevant for others because of
Presence of Multinational Corporations
of the Service Economy
Sunbelt: southern region of the US stretching
from the southeast to the southwest
secondary industrial regions moving into Atlanta, Phoenix
Requires producers of goods to locate offices in the
Bentonville, Arkansas (Wal
Mart’s headquarters) area in
order to negotiate deals with Wal
Proctor & Gamble
put their office in
How does the
presence of these
companies in the
region change the
and its cultural
Headquartered 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.
The swoosh is
where is the shoe
Nike has a global
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.
Outsourced work that is
located outside of the country.
An area designated by local or state government
to benefit from lower taxes and high
infrastructure with the goal of providing high
technology jobs to the local population.
eg. Silicon Valley, California
an area planned for high
technology where agglomeration built on a
synergy among technological companies occurs.
eg. Route 128 corridor in Boston
Telecom Corridor is just north of Dallas