© 2014 Pearson Education, Inc. Chapter 11 Lecture Industry and Manufacturing The Cultural Landscape Eleventh Edition Matthew Cartlidge University of Nebraska-Lincoln.

© 2014 Pearson Education, Inc. Learning Outcomes 11.1.1: Describe the location of the principal industrial regions. 11.2.1: Identify the two types of situation factors and explain why some industries locate near inputs. 11.2.2: Explain why some industries locate near markets. 11.2.3: Explain why industries use different types of transportation. 11.2.4: Describe how the optimal location for steel production has changed. 11.2.5: Explain the distribution of motor vehicle production. 11.2.6: List the three types of site factors. 11.2.7: Explain the distribution of textile and apparel production. 11.3.1: Describe the causes and effects of global warming and damage to the ozone layer 11.3.2: Describe the causes and effects of regional and local-scale air pollution and solid waste. 11.3.3: Compare and contrast point and nonpoint sources of water pollution. 11.4.1: Explain reasons for changing distribution of industry within the United States. 11.4.2: Explain reasons for the emergence of new industrial regions. 11.4.3: Explain reasons for renewed attraction of traditional industrial regions.

© 2014 Pearson Education, Inc. Where Is Industry Distributed? 1.Origin: northern England and southern Scotland in second half of 18 th century. Industrial Revolution refers to improvements made in industrial technology that transformed the process of manufacturing goods. 2.Cottage industry- home based manufacturing 3.Steam engine: iron could be produced without constantly heating ovens 4.Coal: main source of energy to operate machinery making iron and steel 5.Canals and railroads enabled factories to attract workers, bring in materials, and ship finished goods. 6.Canals and railroads 7.Textiles: changed from cottage industry to concentrated factory system 8.Canned food was needed to feed factory workers no longer on farms

Where Is Industry Distributed? 9. Industrial Regions include Europe, North America, & East Asia  Each region accounts for roughly ¼ of the world’s total industrial output.  Brazil and India account for most of industrial output outside of the aforementioned regions. Europe:  U.K.- steel and textiles attracted international investment  Rhine-Ruhr- iron and steel; proximity to coal fields; Rotterdam port  Mid-Rhine- most centrally located area for industry; German cities produce high value goods  Po Basin- numerous workers okay with low pay; inexpensive hydroelectricity from the Alps; attracts textile industry  Northeastern Spain- textile and motor-vehicles produced in Barcelona  Moscow- Russia’s oldest industrial region  St. Petersburg- Russia’s 2 nd largest city; shipbuilding for navy (Baltic Sea)  Urals- world’s most varied collection of minerals; attracted iron and steel, chemical, machinery, and metal fabricating plants and factories  Volga- Russia’s largest petroleum and natural gas fields; Donetsk- Ukraine/coal reserves; Kuznetsk- Russia/coal; Silesia- Europe’ s most rapidly growing industrial area- skilled yet low paid workers and close to market

Where Is Industry Distributed? North America:  New England- cotton textile (1800s); south sent cotton north and product shipped to Europe  Mohawk Valley- upper NY; inexpensive electricity from Niagara Falls  Western Great Lakes- Chicago at the center of nation’s transportation network and steel production  Southeastern Ontario- Canada’s industrial center  Middle Atlantic- largest U.S. market- mass production  Pittsburgh- Lake Erie- leading steel producer (1800s); near Appalachians where coal and iron are found  Southern California- nation’s largest clothing and textile producer and food processing center

Where Is Industry Distributed? East Asia:  Japan- industrial power 50’s and 60’s; mass production with cheap prices; Tokyo and Nagasaki  South Korea- followed Japan in exporting goods; ship production  China- world’s largest supply of low cost labor and market for goods; clustered in Hong Kong, Shanghai, and Beijing

Why Are Situation and Site Factors Important? Companies ordinarily face two geographic costs. 1.Situation factors – costs associated with the established transportation networks accessible from a specific place. 2.Site factors – costs resulting from the unique characteristics of a location. 3.Situation Factors: Proximity to Inputs  The farther something is transported, the higher the costs, so a manufacturer tries to locate its factory as close as possible to its inputs and markets.  Proximity to Input: optimal plant location is near the input.  Raw material transportation costs > transportation costs of product to consumer  Bulk-reducing Industry: Because inputs weigh more than the final products, plant location is near market to reduce transportation costs.

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Important?  Proximity to Market: optimal plant location is near the market.  Raw material transportation costs < transportation costs of product to consumer  Situation Factors: Proximity to Markets  Critical locational factor for three types of industries.  Bulk-Gaining Industries -production of a product that gains volume or weight during its production. Plants typically located near market to reduce the costs of transportation. Examples: (#4) »Fabrication of parts and machinery from steel and other metals. »Plants where beverages are bottled.

Why Are Situation and Site Factors Important? Situation Factors: Proximity to Markets 5. Single-Market Manufacturers-specialized manufacturers with only one or two customers 6. Optimal location for factories is often in close proximity to the customers.  Examples (#7) »Producers of specialized components attached to clothing e.g. buttons, zippers, or pins. »Makers of parts for motor vehicles.

Why Are Situation and Site Factors Important? Situation Factors: Proximity to Markets 8-9. Perishable Products -companies specializing in perishable products must be located in close enough proximity to their markets that the product does not spoil or become dated during transportation. Examples »Food Products e.g. bakers and milk bottlers »Time Sensitive Products e.g. printed newspapers

Why Are Situation and Site Factors Important? Ship, Rail, Truck, or Air? 10. Trucks: short distance because loading and unloading happens quickly and cheaply; driver can reach destination in 1 day Trains: longer than one day drive (coast to coast) Ships: long distances across water Air: most expensive; speedy, high value, small bulk deliveries 11. Many companies that use multiple transport modes locate at a break-of- bulk point, which is a location where transfer among transportation modes is possible. Examples include seaports and airports. 12. Copper: metal processors try to locate near economical energy sources with favorable rates because of the demanding, various steps involved in production

Why Are Situation and Site Factors Important? Steel: Changing Inputs  Two changes in situation factors have influenced changes in the distribution of steel mills within the United States and world. 1.Changes in relative importance of main inputs- iron ore and coal. 2.Increasing importance of proximity to markets rather than proximity to inputs. From the mid-19 th through the early 20 th century, steel mills were located near inputs. (Pittsburgh, Lake Erie, and Lake Michigan all near iron ore and coal) Since the mid-20 th century, proximity to markets has become more important than proximity to inputs.(East and West coast cities like NJ, Trenton, and LA transport easily to foreign markets and scrap metal is easily accessible)

Why Are Situation and Site Factors Important? Motor Vehicles: Motor vehicles are built near their markets. 18. Change in markets influences location of factories. Final assembly plant of motor vehicles is an example of a bulk-gaining operation because it assembles 1000s of small parts into one product. 19. 3 regions of vehicle production: North America –“auto alley” located in interior of the U.S. –Central Mexico Europe –Most located in an east-west corridor between the U.K. and Russia. East Asia –China’s plants located in western China.  Vehicle production is highly clustered to minimize transportation costs of bulky parts to assembly line and products to market. (#20)

Why Are Situation and Site Factors Important? Site Factors 21. 3 production cost factors with site of industry: Labor, Capital, and Land 22-23. Labor -most important factor on a global scale. –Minimizing labor costs, which vary around the world, is extremely important to some industries.  A labor-intensive industry is an industry in which wages and other compensation paid to employees constitute a higher percentage of expenses.  High-wage industries differ from labor-intensive in that it’s measured in currency (hourly pay) as opposed to % of production costs

Why Are Situation and Site Factors Important? Site Factors: 24. Capital Manufacturers typically borrow the funds needed to establish new factories or expand existing ones. Ability to borrow money has greatly influenced the distribution of industry in developing countries. Silicon Valley in California is more likely to invest funds in new industries like the computer industry

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Important? Site Factors: 25. Land - Lots must be large enough to accommodate efficient, contemporary one-story buildings  Convenience in shipping, as well as proximity to local markets, major highways, large labor supply, and sources of capital make land attractive  Mostly available in suburban and rural locations and tends to be relatively cheaper than land in the city.

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Important? Site Factors: 26-27. Textiles and Apparel: Changing Inputs Production of textiles (woven fabrics) and apparel (clothing) generally requires less-skilled, low-cost labor. Majority of spinning, which is a process to make cotton, is done primarily in low-wage countries. –China: Produces 2/3 of the world’s cotton thread. Majority of apparel weaving is highly clustered in low-wage countries. –China: Produces 60% of fabric worldwide. –India: Produces 30% of fabric worldwide.  Most consumers of assembled products live in MDCs; therefore, MDCs play a larger role in textile assembly (#28)  Example: 2/3 women’s blouses sewn in MDCs

Why Does Industry Cause Pollution? Air Pollution- air pollution is concentration of trace substances at a greater level than occurs in average air.  Air pollution can block or delay the return of some of the heat leaving Earth, thereby raising its temperatures.  Burning fossil fuels discharges one of the trace gases, carbon dioxide.  CO 2 levels in the atmosphere have risen by over 25% in the last 200 years.  Anticipated rise in Earth’s temperature because of rising CO 2 levels is called the greenhouse effect.

Why Does Industry Cause Pollution? Air Pollution  Potential Implications of Global Warming  Melting of polar ice sheets  Rising sea levels  Shifting of global precipitation patterns  Ozone Depletion  Earth’s ozone layer in the atmosphere protects the planet from dangerous ultraviolet (UV) rays emitted by the sun.  Earth’s protective ozone layer is threatened by pollutants called chlorofluorocarbons (CFCs).  By 2030, all countries have agreed to cease using products containing CFCs.

© 2014 Pearson Education, Inc. Why Does Industry Cause Pollution?  Regional-Scale Air Pollution  Air pollution may damage a region’s vegetation and water supply through acid deposition- tiny droplets of sulfuric acid and nitric acid that form from burning fossil fuels and fall to Earth’s surface.  Mixing of acid deposition with water produces acid precipitation that manifests itself as rain, snow, or fog.  Geographers are interested in acid precipitation, because it typically does not fall over where it is emitted.

Why Does Industry Cause Pollution? Local-Scale Air Pollution  Air pollution is especially severe in places where emission sources are concentrated, such as in urban areas.  Urban air pollution has three basic components  Carbon monoxide  Hydrocarbons  Particulates  Worst urban air pollution occurs when winds are slight, skies are clear, and a temperature inversion exists.

Why Does Industry Cause Pollution? Solid Waste Pollution  About 2 kilograms (4 pounds) of solid waste per person is generated daily in the U.S.  60% from residences  40% from businesses  Paper products account for the largest percentage of solid waste in the U.S.  Using a sanitary landfill is the most common strategy for disposal of solid waste in the U.S.  Hazardous waste includes heavy metals such as mercury, cyanides, solvents, and acids  Mining is the largest hazardous pollutant (Ohio is a large contributor)  The Environmental Protection Agency (EPA) estimates almost 4 lbs of toxins were released in 2010

© 2014 Pearson Education, Inc. Why Does Industry Cause Pollution? Water Pollution  Sources of water pollution can be divided into two categories.  Point-source pollution enters a body of water at a specific location.  Tend to be smaller in quantity and easier to control (a pipe)  Main sources of pollution are manufacturers, which use water during production and municipal (city) sewage systems.  Nonpoint-source pollution comes from a larger area.  Usually pollute in greater quantities and harder to control.  Principal nonpoint source is agriculture.  Fertilizers and pesticides spread on fields are carried into rivers and lakes by runoff.  Impacts- aquatic life is at risk because the chemicals deprive water of oxygen (“dead water”), which fish need to survive, water may be heated from production, raising the temperature of cold water, which can also kill fish, and/or fish may ingest chemicals making them “unfit” for human consumption  Example: Salmon in Great Lakes are unsafe to eat

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Changes within Developed Regions 1-4. Shifts within the U.S.  (#1)Industrialization during the late 19 th and early 20 th centuries largely bypassed the South, because they lacked the needed infrastructure. e.g. transportation network and electricity.  Essentially, industry in the U.S. over time has shifted from the Northeast toward the South and West. (California and Texas)  More recently, manufacturers have been lured by (#2) right-to-work laws- legislation that requires a factory to prohibit workers from being forced to join a union, aka- “open shop”; (#3)Southern states have less union members than northern states.  (#4)Textile production has moved southeast because the wage rates and union membership is lower than the northeast.

Why Are Situation and Site Factors Changing? Emerging Industrial Regions 5. Convergence regions are areas of low income primarily in Eastern and Southern Europe. Some manufacturers are locating in these places because wage rates are lower than in traditional industrial regions. 6. Traditional industrial regions, also known as competitive and employment regions, in Western Europe are losing manufacturing jobs because transnational corporations have embraced using low-cost labor in developing countries.  New international division of labor: the transfer of laborers is based on the level of skill the production requires---  highly skilled workers to factories located in developed countries  low skilled workers to factories located in developing countries.

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Emerging Industrial Regions 7. Central European countries like Poland, Czech Republic, and Hungary provide a close proximity to less skilled/low wage labor, as well as wealthy markets of Western Europe 8. Skip 9. Transnational corporations transfer work to LDCs because the labor cost is lower for production, even though transportation costs are higher. 10. Outsourcing- turning over production to independent suppliers 11. Example: Apple outsources the small parts of the Iphone to different manufacturers in Japan, Germany, and South Korea (higher skilled); the parts are easily put together in China (low wage/low skill).

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Emerging Industrial Regions 12. Mexico and NAFTA  The North Atlantic Free Trade Agreement (NAFTA) eliminated most barriers to moving goods among Mexico, the U.S., and Canada since 1994.  Mexico attracts labor-intensive industries because of its relatively low-cost labor and its proximity to the U.S.  Plants in Mexico near the U.S. border are known as maquiladoras.  (#13) Labor leaders fear manufacturers will relocate to Mexico leaving many unemployed in U.S. and Canada and environmentalists fear that this move will take place to avoid strict water and air quality standards.

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Emerging Industrial Regions 14. BRIC- Brazil, Russia, India, and China are expected to dominate the world in manufacturing in the 21 st century  Largest economies--- by 2020 China will surpass the U.S.; 2035 India will be 2 nd to China; 2050 Brazil and Russia 6 th /7 th 15. South Africa joined in 2010 because it has the largest economy of Africa in the sub Saharan region (BRIC became BRICS)  If these regions joined forces, they would dominate the world.

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Renewed Attraction of Traditional Industrial Regions 16. Two location factors influence industries to remain in traditional industrial regions:  Availability of Skilled Labor  Asset found in traditional industrial regions.  Rapid Delivery to Market  Proximity to market has become more important since the advent of just-in-time delivery- the delivery method where parts and materials arrive at a factory moments before they are needed.  (#19) Benefits: parts arrive hourly/daily as needed and no money is needed to spend on space for inventory/storage of parts  (#20) Downfalls: labor strikes can shut down entire manufacturing processes because 1-2 parts aren’t being made; Traffic can cause delays in delivery, slowing down production; and weather conditions can prevent manufacturing and delivery

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Renewed Attraction of Traditional Industrial Regions 17-18. Fordist vs. Post-Fordist  Henry Ford introduced the assembly line production method in which each worker was assigned one specific task  Lean production has taken over, which splits production into four parts--- 1. Teams decide on a plan of action 2. Problem solving is done through meetings with a team 3. Leveling ensures that all workers are treated equally 4. New machines require skilled operators, which result in higher productivity

© 2014 Pearson Education, Inc. Why Are Situation and Site Factors Changing? Renewed Attraction of Traditional Industrial Regions 21. Domestic vs. Foreign made vehicles  The U.S. EPA measures fuel efficiency – a car is domestic if 75% of its parts are made in North America (including Mexico)  GM’s Chevrolet Malibu assembled in U.S. with majority U.S. parts  Customs sets import tariffs of cars- domestic if 50% of its parts are made in U.S or Canada  Ford Fusion assembled in Mexico with ½ U.S. parts  American Automobile Labeling provides consumer information- domestic if 85% of its parts are made in U.S. and Canada, but each part is only domestic if 70% is made in U.S. and Canada  Honda Civics- those assembled in U.S. made with majority U.S.- made parts (domestic ; but those imported from Japan are made with Japanese made parts (foreign)

© 2014 Pearson Education, Inc. Summary The concept of manufacturing goods in a factory originated with the Industrial Revolution in the U.K. and later diffused to to other present-day developed countries. Manufacturers select location for factories based on assessing a combination of situation and site factors. Industry is a major polluter of air, land, and water, because the production of goods and services also produce some degree of waste.

© 2014 Pearson Education, Inc. Summary Industry is on the move within developed countries, as well as to emerging developing countries, because firms are always looking to gain a competitive edge over the competition and increase their profit margins.

© 2014 Pearson Education, Inc. Chapter 11 Lecture Industry and Manufacturing The Cultural Landscape Eleventh Edition Matthew Cartlidge University of Nebraska-Lincoln.

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© 2014 Pearson Education, Inc. Chapter 11 Lecture Industry and Manufacturing The Cultural Landscape Eleventh Edition Matthew Cartlidge University of Nebraska-Lincoln.

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Presentation on theme: "© 2014 Pearson Education, Inc. Chapter 11 Lecture Industry and Manufacturing The Cultural Landscape Eleventh Edition Matthew Cartlidge University of Nebraska-Lincoln."— Presentation transcript:

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