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1 http://www.economistpakistan.com/news/INDUSTRY_2.jpg

2  Industry – The manufacturing of goods in a factory  Globalization has changed focus, location  Maquiladora – Factories built by U.S. companies in Mexico  Near the border  Lower labor costs  Consumers: price is more important than origin http://media.web.britannica.com/eb-media/42/100842-004- DCCD2AEC.jpg

3  Industrial Revolution – Improvements in industrial technology that transformed the process of manufacturing goods  N. England/Scotland in the late 1700s  Replaced cottage industries (home-based manufacturing) http://www.historyhome.co.uk/pict2/cottind.jpg

4  Key: steam engine (1769, James Watt)  Could concentrate whole process in one building  Industries impacted: iron, coal, transportation, textiles, chemicals, food processing  Result: high productivity, better living standards http://3.bp.blogspot.com/_8-z-DJhoXIQ/Swn- fZk23wI/AAAAAAAACJ4/AyTCkhzRAkw/s1600/WattSteamEn gine.jpg

5  ¼ of world’s industrial output  Emerged during the 1800s/early 1900s  Key areas:  United Kingdom  Rhine-Ruhr Valley (most important area, iron/steel)  Mid-Rhine (Germany)  Po Basin (Italy) http://homepage.smc.edu/buckley_alan/ps7/europe_industry_1850a.gif

6  N.E. Spain (fastest- growing, focus: textiles)  Moscow (fabrics)  St. Petersburg (shipbuilding)  Volga (petroleum, natural gas)  Urals (minerals)  Kuznetsk (coal/iron)  Donetsk (Ukraine, coal, iron, natural gas)  Silesia (Poland, steel) http://img- fotki.yandex.ru/get/4515/154814723.0/0_6065b_b82a631d_XL.jpg

7  Arrived later, but grew faster than in Europe  Focus: N.E. U.S., S.E. Canada  Regions:  New England (oldest, textiles)  Middle Atlantic (largest)  Mohawk Valley (food processing)  Pittsburgh/Lake Erie (steel)  Western Great Lakes (cars)  S. California (clothing)  S.E. Ontario (steel, cars) http://www.blogcdn.com/www.autoblog.c om/media/2010/06/x08buen091.jpg

8  Key resource: people  Japan  Growth – 1950s/1960s  Focus: motor vehicles, electronics  China  Largest supply of low-cost labor  Focus: textiles, steel, household goods  1990s - allowed transnational companies in, led to rapid economic growth http://www.carztune.com/wp-content/uploads/2011/05/Japanese- auto.jpg

9 http://m.b5z.net/i/u/10032028/i/2948863.jpg

10  The transport of materials to and from a factory  Key factor in determining why industries locate in particular places  Goal: minimize cost of transporting inputs (parts/resources) to factory, and finished goods to consumers http://us.123rf.com/400wm/400/400/anzav/anzav0611/anzav061100192/5 94631-the-motor-vehicle-transports-trees-on-a-factory.jpg

11  Industry in which inputs weigh more than the final product  Example: Copper  Several steps in production (mining, smelting, refining)  Need economical energy source for most steps  2/3 of U.S. copper comes from Arizona (proximity to mines is most important) http://www.mining-technology.com/projects/bingham/images/bing9.jpg

12  Example: Steel  Manufactured by removing impurities and adding elements (manganese, chromium)  Steel mills have been replaced by minimills, which use scrap metal  Proximity to markets is now more important than inputs http://menofsteelrecycling.com/steelplant.jpg

13  Making something that gains volume or weight during production  Example: fabricated metals  Brings metals together and transforms them into a complex product  Most plants locate near markets due to shipping costs http://www.feida-usa-supply.com/Fabricated%20Metal%20Parts.jpg

14  Markets for fabricated metal: TVs, refrigerators, air conditioners, motor vehicles  Beverage production  Empty cans/bottles are filled with liquid, shipped to consumers  Weight adds to shipping costs, so plants are located near markets http://www.theepochtimes.com/n2/images/stories/large/2009/04/30/cc73 486687.jpg

15  Single-Market Manufacturers  Specializers with only 1- 2 customers  Ex. Motor vehicle parts  Perishable Product Manufacturers  Ex. Bread, milk, newspapers  Both industries must locate close to customers http://goldcountryprint.com/index_htm_files/animatedpress.gif

16  Truck – short-distance, best for one-day delivery  Train – Longer distance, no need for stops  Ship – Low cost, cross- continental  Air – High cost, for small, high-value packages  Break-of-Bulk Point  Location where transfer of travel modes is possible  Cost rises with additional break-of-bulk points http://roguemedia.org/wp-content/uploads/2012/02/Container-Ship.jpg

17 http://archdoc.mr926.me/pics2/1212/2011070112124916305.jpg

18  The unique characteristics of a location  Three traditional production factors:  Labor  Land  Capital http://edu.glogster.com/media/5/18/66/99/18669985.jpg

19  The most important site factor  Labor-intensive industry  Industry in which wages and other compensation paid to employees constitutes a high percentage of company expenses  Found mainly in LDCs http://www.fibre2fashion.com/_resources/industry- articles/24/2398/1_files/image002.jpg

20  Example: textiles (woven fabrics)  Step one: spinning  Done mainly in LDCs (China = 2/3 of cotton thread)  Synthetic fibers used in recent years (rayon, nylon, polyester)  Child labor is commonly used http://www.cctv.com/english/20090205/images/1233820679619_1233820 679619_r.jpg

21  Weaving  93% of weaving is done in LDCs  Low labor costs offset shipping costs  Assembly  4 types of products (garments, carpets, home products, industrial products)  Assembled close to consumers (in MDCs) http://www.adhesives-equipment.com/partners/forbo/Bild-Bonding- Systems.jpg

22  New factories need lots of space (one-story facility)  Likely location: suburban or rural sites  Proximity to major highways is most important  Past: railways  Present: Semi-trucks http://www.business-in-asia.com/images/hemaraj3.JPG

23  Environment  Mild climates, year- round activities can also influence site selection  Also: access to affordable electricity ▪ Ex. Alcoa ▪ World’s largest aluminum producer ▪ Relies heavily on hydroelectric power ▪ Constructed its own dams to produce power http://3.bp.blogspot.com/_2mF3zJKEu1E/TGyb8IG4TvI/AAAAAAAAE6c/oJv RRdfNvPk/s1600/045.JPG

24  Key source: borrowed money  Industries located near available capital  ‘Auto Alley’ – Michigan, Indiana, Illinois  Silicon Valley – California (1/4 of all U.S. capital is spent here)  LDCs have great difficulty obtaining capital http://www.zillow.com/blog/images/sanmateotosanjose_1.gif


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