1. The Cultural Landscape: An Introduction to Human Geography
Chapter 11: Industry
The Cultural Landscape:
An Introduction to Human Geography

2. Origin and Diffusion of industry
The Industrial Revolution
Industry = manufacturing of goods in a factory
Shift from cottage industries to factories
dispersed (cottage industry) to clustered (factories)
Impact greatest on certain industries (iron, textiles, etc.)
Led to increased productivity and over time an increase in the standard of living
northern England/southern Scotland = Late 1700s
Later → continental Europe/N. Amer (1800s)
generally followed pattern of proximity to coal and iron
other regions (East Europe, East Asia) in the 20th c.

3. Diffusion of of Industry
Diffused from a few MDCs to many LDCs
What is the state of American manufacturing?
1/3 of manufacturing jobs lost over last decade
“now in jeopardy”, “deindustrialization”
similar situation in EU and Japan
even Mexico is losing manufacturing jobs
early 21st century
Maquiladoras in decline????
Driven by globalization, free trade

7. Industrial Areas in Europe

8. Industrial Areas in North America

10. Industrial Areas in East Asia

11. How Do Location Theories Explain Industrial Location?
Location theory: Predicting where business will or should be located
Assumes:
Desire to maximize advantage over competitors
Maximize profit
Considers
Variable costs
Energy, transport expenses, labor costs, etc.
Friction of distance
Incr. in time and cost w/ distance from market

12. Location Models
Weber’s Model
Manufacturing plants will locate where
costs of transportation, labor are the least
and agglomeration is beneficial
Theory: Least Cost Theory
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilled-labor pools and technological and financial services

13. Weber (Least Cost Theory)

14. Weber (Least Cost Theory)

15. Location Models
Weber’s Model
Manufacturing plants will locate where
costs of transportation, labor are the least
and agglomeration is beneficial
Theory: Least Cost Theory
Hotelling’s Model
Location of an industry cannot be understood without reference to other industries of the same kind
Theory: Locational Interdependence
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilled-labor pools and technological and financial services

16. Hotelling's model: (locational interdependence/spatial competition)

17. Location Models
Weber’s Model
Manufacturing plants will locate where
costs of transportation, labor are the least
and agglomeration is beneficial
Theory: Least Cost Theory
Losch’s Model
Businesses choose locations where they can maximize profit
Closely related to Christaller’s Central Place Theory.
Theory: Zone of Profitability
Hotelling’s Model
Location of an industry cannot be understood without reference to other industries of the same kind
Theory: Locational Interdependence
Agglomeration: a process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and business that benefit from being in close proximity because they share skilled-labor pools and technological and financial services

18. Lösch's model: (zone of profitability/market zones)

19. How are Situation Factors Important?
Proximity to inputs
Examples:
Copper
Steel
Bulk-reducing industries
End product is lighter/less bulky or easier/cheaper to transport than inputs.
Locates closer to inputs

20. Why Are Situation Factors Important?
Proximity to markets
Bulk-gaining industries
End product is heavy/larger than inputs
Examples:
Fabricated metals (cars, appliances, etc.)
Beverage production
Single-market manufacturers
Industry suppliers
“Just-in-time” delivery
Perishable products

21. Beer Bottling and Breweries

22. Why Are Situation Factors Important?
Ship, rail, truck, or air?
Consider “line costs, terminal costs and route flexibility”
Truck = most often for short-distance travel
Train = used to ship longer distances (1 day +)
Ship = slow, but very low costs per km/mile
Air = most expensive, but very fast
Locate at “break-of-bulk point”
Place where transfer between modes takes place
Minimize cost by locating processing nearby
Oil refineries
Less important now due to containerization
Entrepot????

23. Site Factors Are Important
Labor (most important site factor)
Labor-intensive industries vs. capital-intensive
Examples: textiles vs. autos
Trend has been a shift to lower wage areas

25. Site Factors Are Important
Labor (most important site factor)
Labor-intensive industries vs. capital-intensive
Examples: textiles vs. autos
Trend has been a shift to lower wage areas
Land
Shift from urban to rural
Available cheap land
Environmental factors
utilities

26. Why Are Site Factors Important?

27. Site Factors Are Important
Labor (most important site factor)
Labor-intensive industries vs. capital-intensive
Examples: textiles vs. autos
Trend has been a shift to lower wage areas
Land
Shift from urban to rural
Available cheap land
Environmental factors
utilities
Capital
loans for investment, machinery, inventory

28. How are these factors affecting/changing the traditional distribution of industry?

29. Factors Changing Location
Changing industrial distribution within MDCs
Add Intraregional shift
What location historically had the cheap site factors such as labor and access to capital?
What location historically had the best situational factors, especially access to markets and transportation hubs?
Interregional shift within the United States
Northeast/Midwest (Rustbelt) => South/West
Right-to-work laws/non-union = low site costs
Climate = more comfortable, less utilities = lower site costs
Interstate highway system (1950s) = allows location away from urban railway hubs = shifting situation costs

30. Changing U.S. Manufacturing

31. Factors Changing Location
Changing industrial distribution within MDCs
Interregional shift within the United States
Northeast/Midwest (Rustbelt) => South/West
Right-to-work laws/non-union = low site costs
Climate = more comfortable, less utilities = lower site costs
Interstate highway system (1950s) = allows location away from urban railway hubs = shifting situation costs
Interregional shifts in European Union
Encouraged by government policy
Convergence shifts toward poorer regions
Competitive and employment regions receives assistance to offset job losses

32. European Union Structural Funds
Figure 11-23

33. International shifts in industry
Attraction of new industrial regions
East Asia, South Asia, Latin America
Cheap labor, pro-free trade laws, lax environmental regulations
Changing distributions

34. World Steel Production
Figure 11-24

35. Global Production

36. Apparel Production and Jobs in the United States
Figure 11-26

37. International shifts in industry
Changing distributions
New International Division of Labor /Deindustrialization
A process by which companies move industrial jobs to other regions with cheaper labor
MDCs = highly skilled
vs. LDCs = unskilled, labor-intensive
Period of high unemployment in deindustrialized region
Effects unskilled workers in MDCs
Interregional differences in LDCs
Areas connected to core developing more rapidly
Outsourcing
responsibility for production of components to independent suppliers
Footloose industries – industry not tied to other factors

38. Effects of the New International Division of Labor on LDCs
Added job opportunities
Positive addition to personal and national income that raises societal status, family income, etc.
Gender opportunity
Entry of women into work force means added income for household support, which improves the standard of living and lowers population growth rate.
Child labor
Use of child labor discourages further education.

39. Effects of the New International Division of Labor on LDCs
Wage gap
Increased wage gap between the local “haves” and “have nots.”
Migration
Migration of nationals to specialized manufacturing areas improves personal economic positions but weakens family and traditional cultural ties—coastal China, maquiladoras in Mexico.
Environmental Relaxation/lax enforcement
invites new health ailments/problems.

40. Effects of the New International Division of Labor on LDCs
Regional growth
Location of new jobs fosters regional growth and concentration of wealth, pollution, etc.
Uneven nature of growth creates a spatial gap between “have” and “have not” areas.
Cultural change
Westernization of production, management, etc., changes the social and cultural relationships (e.g., women in the workplace, language, cultural disruption

41. Renewed attraction of traditional industrial regions
Capital-intensive, bulk-gaining industries
Proximity to market
Availability of investment
Proximity to skilled labor
Technology corridor: area designated by local or state govt to benefit from lower taxes and high-tech infrastructure with goal of providing high-tech jobs to the local population
Technopole: An area planned for high tech with agglomeration built on a synergy among tech companies

42. Electronic Computing Manufacturing