1. *

2. 11.1 The Industrial Revolution
The Industrial Revolution: A series of improvements in industrial technology that transformed the process of manufacturing goods
Widespread
Social, economic, political inventions
Diffused gradually
Cottage industry: home-based manufacturing
-in textiles:
-early 1800s -- people would spin and weave in their homes
-by mid-century, this industry became based in factories and mills
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© 2013 Pearson Education, Inc.

4. 11.1 The Industrial Revolution
TRANSFORMATION OF AN INDUSTRY
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© 2013 Pearson Education, Inc.

6. 11.1 The Industrial Revolution
JAMES WATT’S STEAM ENGINE
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© 2013 Pearson Education, Inc.

7. 11.1 The Industrial Revolution
Industries impacted by the Industrial Revolution:
Iron
Coal
Transportation
Textiles
Chemicals
Food processing
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© 2013 Pearson Education, Inc.

8. 11.1 The Industrial Revolution
IRON ORE SMELTING
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© 2013 Pearson Education, Inc.

9. 11.1 The Industrial Revolution
DIFFUSION OF RAILROADS
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© 2013 Pearson Education, Inc.

10. 11.2 Distribution of Industry
Three-fourths of the world’s manufacturing is clustered in three regions:
-Europe
-East Asia
-North America
These major industrial regions are divided into subareas
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11. 11.2 Distribution of Industry
EUROPE’S INDUSTRIAL AREAS
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12. 11.2 Distribution of Industry
RHINE-RUHR VALLEY
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13. A minute-and-a-half look at Rhine River boat traffic -- busy?

14. 11.2 Distribution of Industry
EAST ASIA’S INDUSTRIAL AREAS
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© 2013 Pearson Education, Inc.

15. 11.2 Distribution of Industry
NORTH AMERICA’S INDUSTRIAL AREAS
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© 2013 Pearson Education, Inc.

16. 11.3 Situation Factors in Locating Industry
Involve transporting materials to and from a factory
Proximity to inputs
-If inputs expensive to transport, factory will locate near inputs
-If input transportation cost exceeds cost of transporting final product to customers, factory will locate near market
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© 2013 Pearson Education, Inc.

17. 11.3 Situation Factors in Locating Industry
Bulk-reducing industry: An industry in which the inputs weigh more than the finished product
Have a strong input orientation
E.g., copper production
Copper ore is heavy when mined so mills, which locate near the raw-material site, concentrate the copper by removing less valuable rock
Potato chips
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18. 11.3 Situation Factors in Locating Industry
BULK-REDUCING INDUSTRY: COPPER
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19. 11.3 Situation Factors in Locating Industry
Bulk-gaining industry: An industry that manufactures something that gains volume or weight during production
-beverage bottling
-automobile manufacturing
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© 2013 Pearson Education, Inc.

20. 11.3 Situation Factors in Locating Industry
BULK-GAINING INDUSTRY: BEER BOTTLING
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21. 11.3 Situation Factors in Locating Industry
Single-market manufacturers:
Make products sold primarily in one location
Cluster near markets
-example: automobile parts cluster near to where automobiles are put together
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© 2013 Pearson Education, Inc.

22. 11.3 Situation Factors in Locating Industry
SINGLE-MARKET MANUFACTURER: CAR PARTS
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© 2013 Pearson Education, Inc.

23. 11.3 Situation Factors in Locating Industry
Perishable products:
Must be located near their markets
-example: milk
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© 2013 Pearson Education, Inc.

24. 11.3 Situation Factors in Locating Industry
PERISHABLE PRODUCT: MILK PRODUCTION
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© 2013 Pearson Education, Inc.

25. 11.6 Ship by Boat, Rail, Truck, or Air?
The farther something is transported, the lower is the cost per mile
Airplanes
-usually most expensive
-reserved for speedy delivery
Ships
-attractive for very long distance
-cost is very low
Trains
-usually to transport things over one day away
-do not need to stop for rest breaks
Trucks
-short-distance delivery
-easily loaded and unloaded
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© 2013 Pearson Education, Inc.

26. 11.6 Ship by Boat, Rail, Truck, or Air?
SHIP BY AIR
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© 2013 Pearson Education, Inc.

27. 11.6 Ship by Boat, Rail, Truck, or Air?
SHIPPING ROUTES
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© 2013 Pearson Education, Inc.

28. The World’s Largest Container Ship -- 2014

29. All Roads, Air, and Shipping Routes on Earth!

30. Air Cargo

31. Three-mile long train!

32. 11.6 Ship by Boat, Rail, Truck, or Air?
BREAK-OF-BULK POINT, PORT OF LOS ANGELES
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33. 11.6 Ship by Boat, Rail, Truck, or Air?
Break-of-bulk points: A location where transfer among transportation modes is possible
Facilitated by containerization
Seattle as a break-of-bulk point
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34. 11.6 Ship by Boat, Rail, Truck, or Air?
Just-in-time delivery: Shipment of parts and materials to arrive at a factory moments before they are needed
-cars, computers
-reduces wasteful inventory
How is an iPhone made?
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© 2013 Pearson Education, Inc.

35. 11.6 Ship by Boat, Rail, Truck, or Air?
ELIMINATING INVENTORY
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© 2013 Pearson Education, Inc.

36. 11.6 Ship by Boat, Rail, Truck, or Air?
Just-in-time disruptions
Labor unrest
Traffic
Weather
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© 2013 Pearson Education, Inc.

37. 11.6 Ship by Boat, Rail, Truck, or Air?
DELIVERY DISRUPTIONS
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© 2013 Pearson Education, Inc.

38. 11.7 Site Factors in Industry
Three Main Site factors that influence the location of a factory:
Labor
-Labor intensive industries: Wages and compensation constitutes a high percentage of expenses
-Exceeds $30,000 paid to a worker in developed countries
-Benefits add to the costs
-Approximately $5,000 paid to a worker in developing countries
In industries where parts are expensive and the product labor intensive, manufacturers will seek cheap labor
-iPhones: parts made in Japan and Germany, but put together in China
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© 2013 Pearson Education, Inc.

39. 11.7 Site Factors in Industry
LABOR
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40. 11.7 Site Factors in Industry
EARNED ANNUAL INCOME (MALES)
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© 2013 Pearson Education, Inc.

41. 11.7 Site Factors in Industry
COST STRUCTURE OF AN iPHONE
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© 2013 Pearson Education, Inc.

42. 11.7 Site Factors in Industry
Three Main Site factors that influence the location of a factory:
Land
-In past, factors were physically more vertically oriented and had an overall smaller footprint
-Could locate in the city
-Today, factories are physically more horizontally oriented and have a considerably larger footprint
-Locate in suburbs or rural areas
-Urban periphery locations are also attractive
-Access to inputs and ability to ship finished products
-Proximity to major highways important
-Junction points are critical
-Land is cheaper in the suburbs and rural areas as well
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© 2013 Pearson Education, Inc.

43. 11.7 Site Factors in Industry
LAND
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© 2013 Pearson Education, Inc.

44. 11.7 Site Factors in Industry
Three Main Site factors that influence the location of a factory:
Capital
-Most manufacturers have to borrow capital
-Location near funding sources is important
-Silicon Valley (area around San Jose, CA, great tech manufacturing area)
-One quarter of all U.S. capital is spent on new industries here
-Even with two-thirds of all high-tech industries failing, Silicon Valley banks continue to lend to engineers with good ideas
-Capital has become a critical factor to the location of industries in developing countries
However, because of perceived and real financial risks, many banks in developed countries will not lend to proposed startups in developing countries

45. 11.7 Site Factors in Industry
CAPITAL
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