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Industry PowerPoint Presentation

Industry

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Industry

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  1. Industry http://www.mb-hs.com/images/Lfactory.jpg http://www.technologydoctor.com/nss-folder/pictures/LifePak%20Assembly%20Line.jpg http://www.alexmaclean.com/Images/Fine%20Art%20Images/LS0464-02%20copy.jpg

  2. Where did Industry Originate? • Processing of raw materials and manufacturing of capital & consumer goods • Industry is highly clustered in space • The location of industry is determined by the tension between the location of raw materials and the location of markets • Certain industries are attracted to certain locations

  3. Where did Industry Originate? • Before the Industrial Revolution, goods were manufactured in private homes – this was referred to as cottage industry • The manufacturing of goods in a factory began in the UK in the late 1700s and was referred to as the Industrial Revolution (IR) • The root of the IR was the introduction of new technology which changes the way goods were made

  4. The Industrial Revolution • The IR diffused to Europe and North America in the C19th and to the rest of the World in the C20th • IR was industrial, social, economic & political • IR involved gradual changes in ideas and technology to enable goods to be manufactured more efficiently and cheaply in large quantities • IR fuelled by the invention of the steam engine (James Watt 1769)

  5. The Industrial Revolution http://www.chass.utoronto.ca/imago/images/larder_wattdouble.jpg

  6. Diffusion of the Industrial Revolution • The iron industry followed by the textile industry were leaders in increasing output as a result of Watt’s steam engine • Constant high heat is required to mill iron from its ore – the steam engine was able to provide the constant high heat source • Production of iron in high quantities transformed other industries – mining, engineering, transportation

  7. Diffusion of the Industrial Revolution • Coal was required to fuel the engine • Hence industries started to cluster around regions of coal deposits • New inventions were engineered to aid the industrial process – hence thee birth of modern engineering and machine parts production • Canals were built to transport materials and finished goods • Eventually railways came into being through the invention of the steam locomotive http://www.solarnavigator.net http://www.coalpro.co.uk/images/coalmap.jpg

  8. Diffusion of the Industrial Revolution • The textile industry evolved as a result of the invention of the spinning jenny & through large looms • Later bleaching techniques fueled inventions in the chemical industry http://www.ehs.org.uk/industrialrevolution/PH_Industry_2.htm http://www.ehs.org.uk/industrialrevolution/Images/Spinning%20Jenny.jpg

  9. Diffusion of the Industrial Revolution • Food processing to feed expanding urban populations was transformed through the invention of canning techniques (Nicholas Appert) and chemical additives http://perso.wanadoo.fr/joel.puissant/fdc01/appert.jpg

  10. Diffusion from the UK • Britain’s Crystal Palace (1851) was the most visible symbol of Britain’s industrial power • The IR diffused eastwards towards Europe and westwards across the Atlantic to North America • Diffusion to Europe was delayed by political instability (the French Revolution & Napoleonic Wars) & the unification of Germany (1870s) • Britain also deliberately kept industrial secrets within the UK http://www.placeaudesign.com/reperes/histoiredudesign/palace.jpg http://asweb.artsci.uc.edu/german/172/revtrain.jpg

  11. Diffusion to the USA • Industrialists were discouraged from migrating to America • However Samuel Slater migrated to Rhode Island and set up a textile mill (1791) http://www.ou.edu/class/arch4443/1858%20and%20All%20That/Old%20slater%20mill.jpg

  12. The IR in the USA • The textile industry in the USA grew as a result of the Napoleonic Wars and by 1860 the US was 2nd only to the UK • Other industrial processes however, were not used in the USA until the late C19th as the US concentrated on food and lumber • The 2nd industrial revolution occurred in the USA – Henry Ford’s assembly line

  13. Where is Industry Located? • North America • New England • Middle Atlantic • Mohawk Valley • Pittsburgh – Lake Erie • W. Great Lakes • Golden Horseshoe

  14. North America • New England • Oldest region - textiles • Middle Atlantic • NYC-Washington DC – large consumer markets & ports • Mohawk Valley • Upper NY state (Hudson R & Erie Canal) – cheap hydro – steel, food, electro-chemicals • Pittsburgh – Lake Erie • Coal & iron ore- iron & steel mills • W. Great Lakes • Detroit-Chicago-Milwalkee – consumer market, transport hub – auto, agro-chemicals, clothing, furniture • Golden Horseshoe (St. Lawrence & Lakes Peninsula • St. Lawrence Seaway, cheap hydro, Canadian markets – steel, food processing, chemicals, ship building

  15. Changing US Industry Distribution • Decline in N & E • Growth in S & W • California & Texas • Steel, textiles, tobacco • Petro-chemicals • SE – Right to work • SW – low & high tech

  16. Where is Industry Located? • Eastern Europe • Central Industrial District • St. Petersburg Industrial District • Eastern Ukraine Industrial District • Volga Industrial District • Urals Industrial District • Kuznetsk Industrial District • Silesia Industrial District • Western Europe • Rhine Ruhr • Mid Rhine • UK • Northern Italy

  17. Western Europe • Rhine Ruhr • Rivers Rhine & Ruhr • Iron & Steel & other heavy industries • Mid Rhine • Lacks raw materials but is centred in a major consumer market – transportation hubs, luxury cars, textiles & high end consumer goods • UK • Midlands is oldest industrial region – outmoded and less important; SE UK new region – high tech close to EU • Northern Italy • Po River Basin – textiles, cheap hydro & labour, processing raw materials & machine parts assembly

  18. Eastern Europe • Central Industrial District (Moscow) • Large consumer market; textiles & chemicals • St. Petersburg Industrial District • Near Baltic Sea – shipbuilding; local food processing • Eastern Ukraine Industrial District • Coalfields – iron & steel • Volga Industrial District • Petroleum & natural gas fields - petrochemical • Urals Industrial District • Valuable metals; fuels must be shipped in • Kuznetsk Industrial District • Coal & iron ore – iron & steel mills • Silesia Industrial District • Coalfields (iron ore is imported – iron & steel mills

  19. East Asia • Japan is one of the wealthiest countries because of industrial development • China has the 2nd largest economy after the USA • S. Korea & Taiwan have used international trade to become NIC (newly industrialized countries) • Japan, S. Korea & Taiwan have few natural resources – but has large, cheap labour markets – exports consumer goods cheaply • Japan has a reputation for high quality electronic which requires highly trained workers • Japan has furthered industrial processes through JIT (Just-In–Time) TQM (Total Quality Management) technologies

  20. Why do Industries have Different Distributions? • To maximize profits industries must minimize production costs • Geographers try to explain why one location might prove more profitable for a factory than others • Geographical costs include • Situation factors (transporting raw materials to a factory and finished goods from a factory) • Site factors refer to the unique characteristics of a location – land, labour and capital

  21. Situation Factors • To maximize profits, companies try to locate their factories as close as possible to suppliers and consumers to reduce transportation costs • If inputs are more expensive to transport than outputs, the factory locates near inputs • If outputs are more expensive to transport, the factory locates near to the market

  22. Location Near Inputs • Steel Industry • Main inputs coal and iron ore • Steel mills located close to the raw materials • Integrated steel mills processed iron ore, converted coal to coke, made iron into steel & formed steel into sheets, rods & beams http://www.americaslibrary.gov/assets/es/pa/es_pa_steel_1_e.jpg

  23. Integrated Steel Mills in USA • As demand for steel grew, iron ore imported from Canada & Venezuela resulted in steel mills locating near ports • Mills in Michigan survived closure because they are located near large markets

  24. Mini Steel Mills in the USA • Steel mini mills which process scrap steel, have located near markets where their major input is readily available http://www.greatrivereda.com/images/blast.jpg

  25. Location Near Markets • For some factories, the optimal location is near markets • Bulk-gaining industries • Soft-drinking bottling • Brewery • Car assembly plant • Single market manufacturers • High fashion • Auto part factories (agglomeration industries) • Perishables • Dairy • Bakery • Newspapers

  26. Transportation • Inputs & products are transported by • Ship (long distances; bulky cargo where water exists) • Rail (long distances; bulky) • Road (shorter distances) • Air (most expensive; ideal for very light, small cargo) http://www.jcommops.org/graph_ref/cargo_ship-3.jpg http://www.flowersvic.com.au/images/air-cargo.jpg

  27. Break of Bulk Point • Transportation costs rise each time inputs or products are transferred from one mode of transportation to another (labour & possibly warehousing costs) • A location where transfer is made from one mode to another is known as a break-of-bulk point • Ports and airports are important break of bulk points An entrépôt port is a port where goods can be imported and re-exported without duties having to be paid e.g.: Bahrain http://www.seevancouverbc.com/cruise/pov/3103-12a.JPG

  28. Site Factors • Land • Large areas of cheap, flat land available in suburban or rural areas close to transportation corridors • Aluminium smelters locate near to sources of cheap electricity as lots of energy is needed to separate the aluminium from the bauxite • Amenities already available at certain sites, may attract new industries

  29. Site Factors • Labour • Labour intensive industries locate near to labour markets • Semi-skilled, cheap labour is used in the textile and clothing industry (in MDCs the textile industry has been affected by the availability of cheap labour in LDCs) • Highly skilled, more expensive labour is required for the electronics industry (outsourcing to LDCs is becoming increasingly difficult for MDCs as more educated work forces emerge in countries like India)

  30. Site Factors • Capital • Manufacturers require capital to establish and expand their operations • The US auto industry located in Michigan because that region’s banks were more willing to lend money than east coast banks • Banks in Silicon Valley willing to offer loans to computer companies, have been key to the growth of software companies which then are attracted to the Valley

  31. Footloose Industries • Some industries are able to locate wherever they wish as they are not significantly impacted by transportation, land, labour and capital costs • Communications technologies make this more and more possible e.g.: software development and manufacture (Microsoft in Seattle) • Optimal location might not always be possible, so an alternative must be chosen (inertia or history)

  32. Why do Industries Face Problems? • Global Problems • Stagnant demand: capacity to produce goods has increased faster than demand • Low population growth in MDCs • Quality of products • High prices of products • Changing technology e.g.: lighter vehicles • Increased capacity • NICs • Subsidized industries e.g.: steel in Europe

  33. Why do Industries Face Problems? • MDCs • MDCs must protect their markets from new competitors • LDCs must identify new markets in order to grow industrially • Trading blocs • Competition within trading blocs e.g.: NAFTA & softwood lumber dispute • Competition between trading blocs e.g.: NAFTA and EU • Disparities within trading blocs e.g.: Greece, Portugal & Ireland lack industrial investment • Transnational corporations • MDC HQ TNC produce goods more cheaply in LDCs

  34. Why do Industries Face Problems? • LDCs • Distance from markets: wealthy consumers in MDCs are far from manufacturers in LDCs • Inadequate infrastructure: transportation, energy, skilled labour, technology • Limited domestic markets • Dependence on raw material exploitation • Outsourcing from MDCs to LDCs by TNCs (profits return to MDCs) • Political instability

  35. Resource Depletion & Pollution • Renewable resources are threatened if the rate of exploitation exceeds replacement rate • Non-renewable resources will eventually run out • Industrial processes pollute land, air and water

  36. Solutions to Depletion and Pollution • Sustainable development is resource use that meets present needs without compromising future generations ability to meet their needs • 3Rs • Reduce • Recycle • Reuse http://www2.lhric.org/pocantico/earthday/reduce1.gif