2Where did the Industrial Revolution begin, and How did it Diffuse? Key Question:Where did the Industrial Revolution begin, and How did it Diffuse?
3Industrial Revolution: a series of inventions that brought new uses to known energy sources, new machines to improve efficiencies and enable other new inventions.eg. steam engineiron smeltingwater pump
4Beginning of Industrial Revolution When and where did the industrial revolution begin?In Great Britain in the mid to late 1700sWhy Great Britain?Flow of capitalSecond agricultural revolutionMercantilism and cottage industriesResources: coal, iron ore, and water power
5The Industrial Revolution European domestic markets were growing, and a labor force was lacking in EnglandThe steam-driven engine made up for the lack of available labor
6Flow of Capital into Europe, 1775 Needed flow of capital in order to fuel the industrial revolution.
7The Industrial Revolution Freed from charcoal use, iron smelters could be concentrated near British coal fieldsTransportation and communications were affected
8Textiles Production:Liverpool and ManchesterIron Production:BirminghamCoal Mining:Newcastle
9The Industrial Revolution The first steam-powered ocean-going vessel emergedEngland held a monopoly over products in world demand and the skills to make machines to manufacture them
10Ironbridge, England World’s first bridge made entirely of cast iron, constructed in late 1700s.
12Diffusion to Mainland Europe In early 1800s, innovations diffused into mainland Europe.Location criteria: proximity to coal fieldsconnection via water to a portflow of capitalLater DiffusionIn late 1800s, innovations diffused to some regions without coal.Location criteria: access to railroad
14Examine the map of diffusion of the Industrial Revolution into Europe and determine what other characteristics (aside from presence of coal) were necessary for industrialization to take hold in these regions.
15How do Location Theories explain Industrial Location? Key Question:How do Location Theories explain Industrial Location?
16The Paris Basin is the Industrial base of France The Paris Basin is the Industrial base of France. Rouen (pictured here) is at the head of navigation point on the Seine River.
17Location TheoryLocation Theory – predicting where business will or should be located.Considers:Variable costsProfit maximizationFriction of distanceTransportation
18Factors of Industrial Location Raw MaterialsVery few industries use raw materialsMost manufacturing is based on the further processing and shaping of materials already treated insome fashionTransportation costs affectindustry location
19Power Supply (Energy)Power supplies that are immobile or of low transferability may attract activities dependent on themCurrent technology made less importantIndustries requiring large amounts of energy still situated near the power source
20LaborSpatial variable affecting location decisions and industrial development3 major traditional considerationsprice, skill, and amountLabor Flexibility: highlyeducated workers ableto apply themselves to awide variety of tasksand functions
21Market Goods are produced to supply a market demand Size, nature, and distribution or markets is important in industrial location decisionsUbiquitous industries
22Transportation Unifying thread of all factors of industrial location Modern industry is immediately tied to transportationUse many different form of transportation media
23Alfred WeberCreated the classical model of industrial location theory in 1909Least-Cost TheoryExplains the optimum location of a manufacturing establishment in terms of minimizing three basic expensesTransportation cost, labor, agglomeration
24Least Cost TheoryTransportation: the site chosen must entail the lowest possible cost ofA) moving raw materials to the factoryB) finished products to the market. This, according to Weber, is the most important.
25Least Cost Theory2) Labor: higher labor costs reduce profits, so a factory might do better farther from raw materials and markets if cheap labor is available-ex: China – today
26Least Cost Theory3) Agglomeration: when a large number of enterprises cluster in the same area, they can provide assistance to each other through shared talents, services, and facilities-ex: manufacturingplants need officefurniture
275 Controlling Assumptions Area is uniform physically, culturally, and technologicallyManufacturing involves a single product to be shipped to a single market whose location is known3. Inputs involve raw materials from more than one known source location
285 Controlling Assumptions Labor is infinitely available but immobile in locationTransportation routes connect origin and destination by the shortest path and directly reflect the weight of the items shipped and distance moved
29Other Location Models Hotelling’s Model Location of an industry cannot be understood without reference to other industries of the same kind.Theory:Locational interdependence:indicates that locational decisionsare not made independently butare influenced by the actions of others.
30Other Location Models Losch’s Model Manufacturing plants choose locations where they can maximize profit.Theory:Zone of Profitability
31Major Industrial Regions of the World before 1950
32Industrialization Through WWI The four primary industrial regions:Western & Central Europe2) Eastern North America3) Russia & Ukraine4) Eastern Asia
33Western and Central Europe Late 18th Century:BritainFranceBelgiumNetherlandsGermany: 3 districts?Early 20th Century:Italy: What area?Spain: What area?SwedenFinland
34Major 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
35Major Manufacturing Regions of Russia -Many resources throughout the vast expanse of land-Volga River provided an energy resource and transportation through canals-
36Major Manufacturing Regions of East Asia -Japan imported raw materials from it’s colonial empire into Korea, Taiwan, and China-3 major belts in Japan?
37Think 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 place.
38How has Industrial Production Changed? Key Question:How has Industrial Production Changed?
39Post-FordistFordist – dominant mode of mass production during the twentieth century, production of consumer goods at a single site.Post-Fordist – current mode of production with a more flexible set of production practices in which goods are not mass produced. Production is accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world.
40Time-Space Compression Through improvements in transportation and communications technologies, many places in the world are more connected than ever before.
41Time-Space Compression Just-in-time deliveryrather 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 laborcorporations can draw from labor around the globe for different components of production.
42Production of Televisions Three key elements in television production:Research and designManufacturing componentsAssemblyProduction of televisions has shifted across the world over time.
43New Influences on the Geography of Manufacturing Transportation on industrial locationDevelopment of infrastructure: containers, refrigerationIntermodal connectionsRegional and global trade agreementsNAFTA, EUWTO: ~150 countries, promotes free trade to eliminate quotasProximity to Energy sources in industrial location less importantPipelines and tankers deliver fuel to far away places2.5 million miles of pipelines in NA
45Where are the Major Industrial Belts in the World Today and Why? Key Question:Where are the Major Industrial Belts in the World Today and Why?
46Deindustrialization – 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.The former Gautier rolling mills of Bethlehem Steel Corp. in Johnstown, PAAbandoned street in Liverpool, England, where the population has decreased by one-third since deindustrialization
47Newly Industrialized East Asia South East Asia Also known as the Pacific Rim.
48Newly Industrialized China – major industrial growth after 1950 1. Industrialization in the 1960s was state-planned:-Northeast district-Shanghai and Chang district2. Today, industrialization is spurred by companies that move production (not the whole company) to-take advantage of Chinese labor-special economic zones (SEZs).ex: Shenzhen
49As China’s economy continues to grow, old neighborhoods (right) are destroyed to make room for new buildings (below).Beijing, China
50Newly Industrialized East and Southeast Asia 1. Four Tigers South KoreaHong KongTiawanSingaporeA map showing the Four Asian Tigers Hong Kong South Korea Singapore Taiwan
51What is the Service Economy, and Where are Services Concentrated? Key Question:What is the Service Economy, and Where are Services Concentrated?
52Service Economy Service Industry – Tertiary 1. Economic activity associated with the provision of services– such as transportation, banking, retailing, education, and routine office-based jobs.2. As services become more developed specific divisions are used:ex: Quaternary – exchange of information…ex?Quinary – complex decision making…ex?
53Service Economy Postindustrial: a society in which an economic transition has occurred from a manufacturing based economy to a service based economyExamples:United States, Canada, Japan, and Western Europe
54Geographical Dimensions of the Service Economy New Influences on Location:- Information technologies- Less tied to energy sources- Market accessibility is more relevant for someand less relevant for others because oftelecommunications- Presence of Multinational Corporations
55Geographical Dimensions of the Service Economy Sunbelt: southern region of the US stretching from the southeast to the southwest- secondary industrial regions moving into Atlanta, Phoenix- high-tech industry
56Wal-MartRequires producers of goods to locate offices 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?
57NikeHeadquartered 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, MacedoniaThe swoosh is ubiquitous, but where is the shoe produced?Nike has a global network of international manufacturing and sales.
58Modern 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.Offshore –Outsourced work that is located outside of the country.
59High-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, CaliforniaTechnopole – an area planned for high technology where agglomeration built on a synergy among technological companies occurs.eg. Route 128 corridor in Boston
60Plano-Richardson, Texas Telecom Corridor is just north of Dallas