Geography/Planning 379: “Urban Growth & Development” Lecture 13: The Location of Industry

1. Geography/Planning 379: “Urban Growth & Development”Lecture 13: The Location of Industry 1. Time Trend of the Decentralization of Manufacturing vs. Other Land Uses 2. Historical Stages of Industrial Location First: Craft Shop and Cottage Industry Second: Water Power and Growth of the Mill Town Third: Transition to Steam Power and Rail Locations Fourth: Decentralization Fifth: In-situ Suburban Expansion 3. Industrial Park Strategies a. Traditional (Light Manufacturing) Parks b. Research Parks c. Science Parks d. Business Parks READING: Required: Textbook, Ch. 7, pp. 155-174“You see things as they are; Optional: Saxenian and you ask ‘Why’? But I dream things that never were; and I ask ‘Why not?’” --George Bernard Shaw

2. 1. Time Trend of the Decentralization of Manufacturing versus Other Land Uses • One of the major themes of the course: Decentralization • Back in 1920, Population and Manufacturing were both about equally centralized within U.S. urban areas • There has been a long-term decentralization of population going back to omnibus era • Retailing began its decentralization earlier than some of the other sectors of the urban economy • How can we measure the extent to which manufacturing and other employment sectors are centralized or decentralized at various time periods?

3. 1. Time Trend of the Decentralization of Manufacturing versus Other Land Uses We can use employment density instead of residential density The Colin Clark Population Density Model... D(x) = D0 e –b x D(x) Density at distance x D0 b = 0 b = 0.1 b = 0.2 This one is the most “bent”; it has the highest b parameter value b = 0.3 b = 0.4 x, distance from center What’s b? It’s a parameter that controls how quickly density falls off with increasing distance from the center. What if b = 0? (Flat line – no decline of density with distance!) • So if we fit this model at various points in time the b parameter would tell us about the time trend in the decentralization of manufacturing: • Unchanging, higher values of b would mean that employment remains centralized • Values getting closer to zero would indicate dispersal or deconcentration or spreading out of jobs

4. 1. Time Trend of the Decentralization of Manufacturing versus Other Land Uses Wholesaling Centralized Why did manufacturing become more centralized during 1940s? Services b Density Gradient Parameter Why did decentralization speed up in 1970s? Retailing Population Retailing abandons the CBD Dispersed 1920 1930 1940 1950 1960 1970 Year SOURCE: Adapted from T. Hartshorne, Interpreting the City

5. 2. Historical Stages of Industrial Location • Long term U.S. history illustrates that the changing needs of manufacturing affects the locations chosen • First Stage: Late 1700s during Pedestrian City Era – Craft Shop and Cottage Industry • Only a few larger scale operations such as shipbuilding: these down on the waterfront • Much of other production took place in workshops in homes • Industrial organization: small-scale dispersed production; paid on piecework basis Shipyard

6. 2. Historical Stages of Industrial Location “Fall line” cities • What industry started the industrial revolution? • What power source was used? • Second Stage: Water Power and the Growth of the Mill Town Lowell, Mass.A typical mill town of the mid-1800s… Had 30 mills in 1850 and was 2nd largest city in the state and largest textile center in the USA Merrimac River Artificial Canals Tewksbury River

7. 2. Historical Stages of Industrial Location • Water important for manufacturing location for a number of reasons besides power: • Means of transporting heavy raw materials and final products • Raw material input in many production processes – blast furnaces for steel making or as main ingredient in brewing beer…

8. 2. Historical Stages of Industrial Location • Third Stage: Transition to Steam Power and to Rail Locations • First took place in Middle Atlantic States near new power source: Coal! • By late 1800s downtown areas near rail terminals became the prime industrial sites • This is really when the locations of heavy industries were established – and remained in place through 1960s

9. 2. Historical Stages of Industrial Location Third Stage: Transition to Steam Power and to Rail Locations In the Burgess Concentric Zone Model: These factories are in the Fringe of the CBD & Gray Zone or Zone in Transition CBD Spur Lines

10. 2. Historical Stages of Industrial Location • Through WWII and before Interstate Highways opened in 1960s, little change in location of manufacturing • Movement of primary sector goods within the city very expensive in early part of 1900s • If away from railway lines hauls made by horse & wagon • 1918: Average cost was33 cents / ton-mile • When trucks came in: 15 cents / ton-mile • Trucks opened up some new locations, but until intercity freight moved by truck the old rail locations were still the most cost effective • Beginning in 1960s: Fourth Stage: Decentralization • List of reasons why manufacturing rapidly decentralized…

11. Reasons for Decentralization of Manufacturing • Highway Transport – Most accessible locations now at freeway interchanges • Tax Laws – Central cities have high property taxes; unincorporated areas preferred • “Regulatory Imprints” • Example: ICC Commercial Zones • Example: Local Telephone Call Areas • Zoning – many codes very exclusionary wrt industry • Land Values • Space Requirements • Promotion by Railroads! (They started the first “industrial parks”)

12. Fifth Stage: In-situ Suburban Expansion Continuing decentralization now more due to growth of firms already located in suburbs and closures of older firms in the central cores rather than actual decentralization movements

13. 3. Industrial Park Strategies • Much of the growth in industry since WWII has taken place in “Industrial Parks” Definition: Industrial Park – A planned development designed to insure compatibility between industrial operations within and between the industrial tenants and the surrounding community • Attempt to change image of industrial land uses: usually park or campus-like character with landscaped buffer zones

14. 3. Industrial Park Strategies • Zoning, utilities, and sometimes generic rental space provided • Earliest parks established by railroads in Chicago • 1899 Clearing Industrial District • 1905 Central Manufacturing District • Very slow growth of the concept until after WWII • 1940 35 parks in all of USA • 1960 250 parks • By 1980, more than 2,500 • Most all parks are outside American Manufacturing Belt • California, Texas, Florida, Minnesota, and Wisconsin have the most

15. 3. Industrial Park Strategies 4 Main Types of Parks.. • Traditional Park • Focus on light manufacturing, assembly, distribution, warehousing – not on heavy manufacturing • Example: Great Southwest Industrial Park in the Dallas – Ft. Worth “Metroplex” • Easy highway and air access (fly-in concept!) • Plentiful flat land • Average firm is very small • 50% of all tenant firms have less than 10 emps • 75% have less than 50 emps

16. 3. Industrial Park Strategies 4 Main Types of Parks.. • Research Park • These havemostly flopped! • One of the successful ones: Research Triangle Park in N.C. • Amenities important (Natural and Cultural) • Draw from academic community • Federal Government helped by locating research operations of several agencies here Durham Duke A Raleigh Airport NC State UNC Chapel Hill

17. 3. Industrial Park Strategies MORE SUCCESSFUL THAN RESEARCH PARK CONCEPT! 4 Main Types of Parks.. • Science or Technology Park • Hybrid Type • Partly a Research Park-- but not so restrictive; warehousing, distribution, light manufacturing, assembly • Especially important in “High Tech” industries: Electronics, Aerospace, Optics, etc. • Boston region: • Silicon (Santa Clara) Valley in California (Saxenian Reading for today’s lecture) • Business Park Combo of Industrial and Office Park I-95 MIT, Harvard, BU, BC, Northeastern, Worcester Poly, Lowell U., etc. etc. I-495 Rte128 I-95

18. POP QUIZ Name_______________ Choose the correct decentralization trend for: 1. _E_ Population 2. _C_ Retailing 3. _D_ Manufacturing A Centralized B b Density Gradient Parameter C D E Dispersed 1920 1930 1940 1950 1960 1970 Year