1. The Changing Location of Industry
AP Human Geography
Industry and Services Unit

2. For today, 03/10 Turn in your Irving, Texas, Honda Analysis
We will be taking notes today about the changing locations of industry.

4. Weber’s Industrial Model/Theory
Industrial equivalent of Von Thünen’s Model
Location of manufacturing plants is determined by considering (assuming goal is to minimize cost/maximize profit):
(1.) Location of raw materials
(2.) Location of market
(3.) Transportation costs

5. Applications of Weber’s Theory
(1.) Location of raw materials is evident from the map (2.) Steel is a bulk-reducing industry, so factories should be located nearer to the raw materials to minimize transportation costs (3.) Agglomeration – the clustering of mills is evident around Chicago and Pittsburgh, which can provide cheaper labor

6. Changes in Industrial Location
Fordist production vs. Post-Fordist production
Mass production at one site vs. Outsourcing
Transportation: break-of-bulk points and container transport (containerization)
Energy: oil and gas replaces coal post WWII
transported by pipelines and tankers
Regional and global trade agreements
NAFTA, EU, WTO
Maquiladoras in Mexico
Time-space Compression
World has never been more connected
Call centers for US companies in India

7. Changes in US Industry
American owned parts plants are clustered near the final assembly plants in the Rust Belt.
Foreign-owned plants tend to be located farther south, where labor unions are weaker, wages, taxes and regulations are lower.

8. Deindustrialization
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.
NIC = Newly Industrialized Country
* China (SEZs)
BRICS = NICSs w/ growing economy
Brazil
Russia
India
China
South Africa

10. Steel: from core to periphery and semi- periphery