Industry and Services
Chapter 12
Where did the Industrial Revolution begin?
How did it Diffuse and facilitate growth of Industrialization in the world?
How does it affect your life?
COTTAGE INDUSTRY
• Before Industrial Revolution and Large Factories
– People Worked @ HOME
• Sewed clothing, hand crafts, furniture, subsistence AG • More….?
• Modern Examples of Cottage Industry TODAY
– People Still work @ HOME
• Babysitting, Website Design, Authors, Auto Repair • More….?
Industrial Revolution:
a series of inventions that brought new uses to known energy sources, new machines to improve manufacturing productivity and enabled other new inventions. Fueled 2nd Ag rev...
Examples: Why significant?
steam engine → POWER Source so less labor
iron smelting → leads to Railroads and steel vehicles water pump → ENERGY for power and Irrigation!
Spinning Wheels → Faster production, gears and cranks Caused MAJOR EXPLOSION in urban population=URBANIZATION
Ex. London 1 million in 1800 to 6 million by 1900
Beginning of Industrial Revolution
• When and where did the industrial revolution begin?
– In Great Britain in the 1700s (18th century)
• Why Great Britain?
– Flow of capital coming in from Columbian Exchange – Second agricultural revolution began here
Flow of Capital into Europe, 1775 because of Mercantilism
ORIGINS OF IR GREAT BRITAIN Textiles Production: Liverpool and Manchester Iron Production: Birmingham Coal Mining: Newcastle
-all wanted more efficient means of producing goods
Ironbridge, England
Diffusion to Mainland Europe
In early 1800s, innovations diffused into mainland Europe.
Location criteria: proximity to coal fields connection via water to a port flow of capital (raw materials)
RAILROADS COME LATER AFTER SMELTING INVENTED
Later Diffusion beyond Europe
(very different)
In late 1800s, innovations diffused to some regions without coal. Location criteria: access to railroad
flow of capital-resources, people for labor
Diffusion of Industrial Revolution
LATER BY
RAILROAD &
How do we use Location Theories
to explain Industrial Locations?
Identify, explain, and provide examples for each.
Key Question:
Take this practice quiz to start the day!
(V)Weber Location Theory, 1909
• Location Theory – predicting where business
will or should be located.
Considers: TRANSPORTATION, LABOR, AGGLOMERATION - Variable costs –cheapest labor prices, shared material prices
- Friction of distance- limit increase in costs with time of travel
- -> → -- >Goal to Reach highest profits!
- Larger PRODUCT WEIGHS→ More expensive to ship
- Weight Gaining Product- Located by Market/Town
Location Models
(V)Weber’s Model
Manufacturing plants will locate where costs are the least (least cost theory)
Theory: (Class WS)
Least Cost Theory
Costs: Transportation, Labor, Agglomeration
Transportation cost most important –seek lowest!
Hotelling’s Model
Location of an industry cannot be understood
without reference to other industries of the same kind.
Theory: Car Dealerships?
People will shop at closest store as long as prices are same.
Menards/Home Depot, Fleet Farm/ Lowes/ C&S Based on Agglomeration
Most common today
Losch’s Model
Manufacturing plants choose locations where they can maximize profit.
Theory:
Losch’s Model
Central Planning –
(more a policy)
• Massive capital and infrastructure sent to areas to build quantity over quality large scale industrial agglomerated plants
• Typically occurs in communist/socialist nations
• Tran-Siberian railroad in Russia….--> Forced Location
Aftermath of Central Planning
• As governments/economy crumble; crisis ensues…• High unemployment occurs • Low production of goods
• High periods of Deindustrialization
• Slow to move to new service industries
Bratsk Power of Place
• Start at 15:20 https://drive.google.com/drive/u/0/folders/1DMMvRGr3nZUO12HgdJoBJDCHhNuY5Y09
• What were the effects of Central Planning on Bratsk?
• Describe CENTRAL PLANNING and provide
Major Industrial Regions of the
World before 1950 and the mass
Major Manufacturing
Western
and
Central
Europe
Where are the Industries
Major
Deposits of
Fossil Fuels
in North
America
Where are the Industries
SUN BELT PULL FACTORS:
Using Mankato, think of an industrial area near where you live, either a business area, or a major
agglomeration of industries. Consider the models of industrial location described in this section of the chapter and determine whether any of the models apply to this place. Explain.
Summarize where we find Historically Industrial
How has Industrial
Production Changed from the
beginning phases of Industrial
Revolution in early 1800’s?
FRQ:A. Explain Just in Time Delivery and Break of Bulk Point B. Describe two differences between Fordism and
Post-Fordism
C. How has Time-Space Compression changed Industries?
Fordism
Fordist – dominant mode of mass production during the late1800s-early1900s, production of consumer goods at a single site. During Industrial Revolution.
Labor mostly done by HUMANS.
Post-Fordist – current mode of production with a more flexible set of production practices in which goods are not mass produced. Production is accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world. MACHINES replace WORKERS MAJOR existence OF TRASNATIONAL
Characteristics
• FORDIST- ASSEMBLY LINE -> Mass production->cheap!
– Vertical Integration: Henry owned all aspects of production
– Transportation costs major concern -Von Thunen/Weber least cost theory!
– 1st time machines truly replaced workers except some unskilled workers still had a role
•
POST-FORDIST-– Flexible Production System- go to cheapest costs
– Outsourcing → Offshoring –go to cheapest labor
Time-Space Compression Through improvements in
transportation and communications technologies, many
Time-Space Compression
• Just-in-time delivery - bye bye sears, K-Mart, Gordmans
rather than keeping a large inventory of components or products, companies keep just what they need for
short-term production and new parts are shipped quickly when needed. Shop in stores OR online more?
-AMAZON, EBAY, FURNITURE(IKEA), Zulily
• Global division of labor CORE-> to PERIPHERY
– Periphery-Primary work -Semi-periphery-Low skill=secondary activity » Core=High Skill= tertiary activity
- Corporations can draw from labor around the globe for different components of production.
New Influences on the
Geography of Manufacturing
• Industrial Location not dependent on Transportation cost
– Increased Intermodal connections-(where) two modes of transportation meet, port/railroad
– Allows for CHEAPER/EFFICIENT transportation – BREAK OF BULK POINT- (how)good transferred
from one mode of transport to another(Ship to Semi)
• Regional and global trade agreements
– NAFTA, EU, WTO, etc (supranational org)
– Go where largest tax breaks or incentive by cities
• Energy Prices in industrial location
– No more coal → now petroleum and natural gas
Summary:
You live in a Post-Fordist Society. Describe how this industrial lifestyle directly affects your life. There is so many ways, try to think creatively.
Where are the Major
Industrial Belts in the
World Today and Why?
ANSWER:
In EPZs….
Newly Industrializing Countries= NIC’s
Production moved to developing countries thanks to increased communication & cheap/fast transportation (time-space compression)
• FOUR TIGERS of East/South Asia: South Korea, Hong Kong, Singapore, Taiwan
– Thanks to low labor costs at first →growth pole
– Taiwan- Now a technopole of communication
• CHINA: World’s largest exporter in world.
– Thanks to low labor costs and low EPA regulations, low tax laws. NOW CHANGING slowly back to core...
• Footloose Presence of Multinational Corporations in East Asia • Mexico- Maquiladora district is manufacturing district developed
in northern Mexico just across the border of the U.S.
Newly Industrialized
China – major industrial growth after 1950Industrialization in the 1960s was state-planned(CP?):focus on:
Northeast district –now rust belt as area deindustrialized..
Shanghai and Chang district Central Planning Failed So…. China allows SEZ’s- bad for US jobs… Capitalist zone
Today, industrialization is spurred by companies that move production (not the whole company) to take
advantage of Chinese labor and special economic zones (SEZs)= Areas with favorable laws, and low taxes
Export Processing Zones= spaces within a country with
As China’s economy continues to grow, old neighborhoods (right) are destroyed to make room for new buildings (below).
Deindustrialization – Liverpool POP #5
a 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.
Abandoned street in Liverpool, England, where the population has decreased by one-third since deindustrialization
Great Lakes in US-Rust Belt.
Tourism Industry Created
• De-Industrialization paves way to largest service sector industry-
Tourism
.Sun Belt in U.S. –SOUTH REGION
• Service Sector Businesses***TURN TO PG 428 (map)
– locate here due to nice climate and local laws – Do not need ENERGY/RAW RESOURCES/TRANSPORTATION
– Has the least state laws & growing population
– Only thing that matters is access to MARKETS!
How does a place change when
deindustrialization occurs? What has happened to the place and its economy?
Practice Quiz Review:
How does a person describe the
Global Production System?
Practice Quiz Review:
https://goo.gl/forms/to8se0RXg83Id0aE2
Modern Production-
Periphery zones
Outsourcing –
moving individual steps in the production process (of a good or a service) to a supplier, who
focuses their production and offers a cost savings. Ex. APPLE uses 100’s of smaller companies
Offshore –
Outsourced work that is
located outside of the country.
Core =Tertiary service
Semi-periphery - manufacturing Periphery = raw materials
SUBSTITUTION PRINCIPLE: Either find cheaper labor or replace with automation(robots)
Production of Televisions
• Three key elements in television production:
– Research and design (usually always found in core) – Manufacturing Process/Secondary – semi-periphery – Raw Resources- Periphery
• Production of televisions has shifted across the world over time.
– Labor intensive part of TV assembly found in Asia → least laws, cheapest labor, lowest taxes
Wal-Mart
Requires producers of goods to locate offices in the
Bentonville, Arkansas (Wal-Mart’s headquarters) area in order to negotiate deals with Wal-Mart.
FRONT OFFICES forced to be in Arkansas :(
Proctor & Gamble put their office in nearby Fayetteville, Arkansas.
How does the presence of these companies in the region change the region’s economy and its cultural landscape?
Re-read pg 429
Nike
Headquartered in Beaverton, Oregon, Nike has never
produced a shoe in Oregon. Beginning in the 1960s, Nike contracted with an Asian firm to produce its shoes.
The swoosh is
ubiquitous(known), but where is the shoe
produced? Mexico and East Asia
MULTINATIONAL COMPANY
global network of international
manufacturing and
NIKE?
MADE IN AMERICA or DESIGNED IN AMERICA??????
Power of Place #10
High-Technology
Corridors-Service and Research in US core-high skilled
• Technopole An agglomeration designated by local orstate government to benefit from lower taxes FOR high-technology infrastructure with the goal of
providing high-technology jobs to the local population.
eg. Silicon Valley, California GROWTH POLES are Technopoles
eg. Route 128 corridor in Boston, Taiwan example (POP)
Growth Poles are newly industrialized areas that spurr large growth
• Local Scale- Highway 22 in Mankato
• State Scale- Surrounding areas of MPLS/St.Paul
• National Scale- SUN BELT
US SUNBELT now serves as areas of agglomeration of newest growthpoles
Plano-Richardson, Texas This is a technopole & growthpole!
IF YOU ONLY LEARN 8 THINGS IN THIS UNIT… Practice Quiz Review:
https://goo.gl/forms/to8se0RXg83Id0aE2
1. Industry is based on transportation and labor costs. Weber's least cost theory suggests that a production point
must be located within a "triangle," with raw materials coming from at least two sources. Weight-gaining industries must have their production point closer to the market. Weight-reducing industries must have their production point closer to the raw materials.
2. The five main means of industrial transportation are truck, train, airplane, ship, and pipeline. Each has advantages
and disadvantages for hauling raw materials r finished products to production points or markets around the globe.
3. Basic industries are city-forming industries, whereas nonbasic industries are city serving industries. Basic
industries re the main business for which a city is known. Detroit/automobiles, Pittsburgh/steel, San Jose/computer chips are just three examples of basic industries in major urban areas in the United States.
4. The main factor in determining an area's development is the Human Development Index, which measures life
expectancy, literacy, education, and the overall standard of living for different countries around the world. It was developed by Pakistani economist Mahbub ul Haq in 1990, and has since been used by the United Nations as the primary indicator of countries' levels of development.
5. The core-periphery models describes regions as core, semi-periphery, and periphery areas. It also describes four
areas, the industrial core, upward transition, downward transition, and resource frontier. The model can be used from a worldwide scale down to urban scale to analyze city zones.
6. The latest development strategy, sustainable development, attempts to improve the lives of people without
depleting resources for future generations. This approach is often successful on a small geographical scale.
7. Natural resources are either renewable or nonrenewable. The most important nonrenewable natural resource s for
industrial purposes are fossil fuels. The burning of fossil fuels and extraction of natural resources can have negative environmental consequences.
8. The United States is the leading consumer of fossil fuels in the world today. China, with its growing economy, is
