The Clothing Industry

2. The Clothing Industry • Where did the clothing industry first develop? • What were the important new clothing-producing countries in the early 21st-century? • What is the hourly wage for apparel workers in the U.S. at the time the article was published? How does it compare with other areas? • How does high-end apparel production differ from cheap leisure wear?

3. Industrialization “Why Do Industries Have Different Distributions?”

4. It’s All About THE MONEY! • Industry seeks to maximize profits by minimizing production cost • Geographers try to explain why one location may provide more profit than another • Two geographical costs: • Situation: transporting materials • Site: land, labor, and capital

5. Situation Factors • Definition – transporting materials to and from the factory • Objective – minimize the costs • For some companies, this is the most important factor in choosing a location

6. If you were building a car manufacturing plant in the U.S., where would you locate it?

7. Proximity to Inputs • Every industry needs either resources from the physical environment or parts/materials made by another company • Weight of the material is a factor for choosing location

8. Example: Copper Industry • First Step: Mining the copper ore • Bulk-reducing Industry • Concentration mills must be near mines • Purified copper is then treated at refineries • Source of energy

9. Example 2: Steel Industry • Also a bulk-reducing industry • Choose location to minimize the cost of transporting inputs • Steel is an alloy of iron that is produced by removing impurities in iron

10. Origin of Steel Industry • Productions was small until the Industrial Revolution • The constant heating and cooling of steel required strength, skill and a lot of time • The Watt Steam Engine

11. More advances in the steel industry • Henry Cort • Puddling – reheating iron until pasty, then stirring it with iron rods until impurities are burned off • Rolling – passing iron between rollers to remove remaining scum • Abraham Darby – produced high quality iron smelted with purified carbon made from coal, known as coke • Result – the iron industry needed to be near coalfields

12. U.S. Steel Industry • In the mid 19th Century – the U.S. steel industry was concentrated around Pittsburgh • In the first half of the 20th Century – steel mills were built near the coast • Baltimore, L.A., Trenton

13. Changing U.S. Steel Industry • Recently, many steel plants have closed • Survivors – southern Lake Michigan, East Coast • Successful steel mills are located close to markets • Mini-mills

14. Proximity to Markets • Transporting goods to consumers is an important locational factor for three industries: • Bulk-gaining • Single market • Perishable

15. Bulk Gaining Industries • Gain weight during production • Example: soft drink bottling • Coca-Cola has bottling plants all over

16. Fabricated Metals and Machinery • This is a prominent example of a bulk gaining industry • A fabricated-metals factory brings together parts to make a more complex product • Examples: TVs, refrigerators, air conditioners, and cars

17. Location of Car Manufacturing • Historically – near large markets • Recently – assembly plants focus on producing a single model rather than locating near all large markets

18. The Ford Plant in ATL (#6) has closed

19. Single Market Manufacturers • Products are sold primarily in one location, so they cluster near the market • Example: the manufacturers of automobile parts only sell to a couple of customers (GM, Toyota) • Parts makers ship their products directly to assembly plants • “auto alley” Average Percentage of State GDP in Automotive Manufacturing, 1998 to 2008

20. Perishable Products • Products must be delivered to consumers ASAP! • Milkshed • Technology’s impact?

21. Ship, Rail, Truck, or Air • Trucks – used for short distance • Trains – longer distances • Water – if available, is attractive for long distances • Air – the most expensive, but more firms are using the air for speedy delivery

22. Break-of-Bulk Points • Cost rises each time inputs are transferred from one mode to another • Sometimes – the cost for one mode is lower for inputs and expensive for products, so companies locate at a “break-of-bulk” point where transfer among transportation modes is possible • Seaport, airport St. Louis is a break of bulk point and you can see the multiple transportation modes intersect here

23. Site Factors • Definition = the unique characteristics of a location • Land, labor, and capital are the three traditional production factors that vary among locations • The most important site factor on a global scale = labor • Minimizing labor cost in VERY important for some industries

24. Labor • Labor-intensive industry – one in which labor is a high percentage of expense • Some need highly skilled, expensive labor • Labor intensive is not the same is “high-wage” • Textile and clothing industries – require less skilled, low cost workers • 3 steps: spinning, weaving, and cutting/sewing • All are labor intensive, but not equally so resulting in global distributions that are not identical

25. Textile and Apparel Spinning • Because it is labor intensive, it is located in low-wage countries (PINGs) • PINGs account for ¾ of the world’s spinning production • Located where cotton is grown • The U.S. is the only PED that is a major thread producer • Synthetic fibers – ½ is made in PINGs

26. Textile and Apparel Weaving • Labor is even more intensive • Especially highly concentrated in low-wage countries: 86% of the world’s woven cotton is produced in PINGs • China accounts for ½ of production • India accounts for ¼ of production

27. Textile and Apparel Assembly • Textiles are assembled into four main types of products • Garments • Carpets • Home products • Industrial uses • Most of the 80 billion articles of clothing sold worldwide are made in Asia • 3/4 of shirts • ½ of dresses and suits • Most of the world’s underwear and lingerie • Europeans and North Americans produce woolens

28. Land • Most efficient form of factory is a one story building = more land needed to build these • Land is cheaper in suburban or rural areas than in the city • Industries are attracted to energy sources, low electrical rates, and amenities at the site

29. Capital • Manufacturers typically borrow funds to establish new factories or expand existing ones • Silicon Valley – capital • Financial incentives • The ability to borrow money in PINGs