Ch 11 Industry
Ch 11 Industry
Key Issue 1: Where is industry distributed?
Maquiladoras- assembly plants situated on the US/Mexico border- materials imported from the US, assembled in Mexico, and sold as finished products in US markets. Takes advantage of low labor costs in Mexico.
Europe- 4 main districts- UK, Rhine-Ruhr valley, mid-Rhine, and N. Italy
UK-Industrial Revolution originated in England because of clustering of engineers, mechanics, coal, and iron ore. Today industry located in SE England because the Chunnel facilitates transport of goods to Europe.
Rhine-Ruhr valley- Rotterdam on Rhine is world’s largest port. Iron/steel manufacturing in Rhine valley because of access to coal. Political instability and Napoleonic wars delayed the spread of industry and railroads here.
Mid-Rhine- includes Alsaice-Lorainne, an area France and Germany fought over in WW1 and WW2. Europe’s largest iron ore field, lots of coal too, and river transportation.
N Italy- Ind rev didn’t come to S/E Europe until the 20th century, unlike the 1st two above. Textile industry in Po R. basin, hydro power from rivers rolling off the Alps
E. Europe
Central- situated because of proximity to large market (Moscow). Textiles, chemicals
St. Petersburg- where the ind rev and railroads started in Russia. Shipbuilding.
Volga- Large oil/gas fields. Industry started here when the Germans occupied the 1st 2 in WW2.
Urals- Same here, although these mountains contain more than 1,000 minerals
Kutznesk- developed coal/iron ore under the Soviet Union
E. Ukraine- produces pig iron/steel. Lots of coal, gas, iron ore.
N America
Most industry focused in NE US and SE Canada- proximity to European markets and raw materials.
New England- textiles, European immigrants cheap labor. Now skilled but expensive labor.
Mid Atlantic- New York to Washington, largest US market
Mohawk Valley- lakes, falls, and canals provide hydro power and transportation. Aluminum, paper, electrochemical industries
Pitt-Lake Erie- between Pittsburgh and Cleveland, steel. Lots of coal and iron ore in Appalachians.
W. Great lakes- Detroit/Toledo to Chicago/Milwaukee. Chicago is a dominant interior market and where air, sea, road, and rail transport converge.
St. Lawrence Valley- great lakes provide transport, falls hydro power- paper, aluminum
E. Asia
Japan, S. Korea, Taiwan, China. China is world’s 2nd largest manufacturer, Japan focuses on electronics. Low cost, abundant labor in E Asia
Key Issue 2- Why do industries have different distributions?
Location of industry dependant on site and situation.
Site- unique characteristics of a location. Land, labor, and capital vary among sites.
Situation- dependant on the cost of transporting raw materials to the industry and transporting finished products to market. See gravity model.
Situation factors
If a finished product is expensive to ship, they locate near market. If raw materials are expensive to ship, they locate near those.
The following industries need to locate close to inputs (raw materials), because they are bulk-reducing industries- the finished product weighs less than the raw material. Copper, Steel. Aluminum needs to have access to cheap electricity.
Other industries locate next to markets because the are bulk-gaining industries- the finished product weighs more than the raw materials. Pop and other beverages (not juice, bulk reducing), machinery, perishable products like fruit and milk
Shipping- Expense depends on distance and amount being shipped. Air is the most expensive generally. Trucks are cheap for short hauls. Rail is in-between trucks and ships, which are cheapest for long distance shipping of large quantities.
Break of bulk point- where modes of transportation are transferred, like seaports and airports.
Site factors- land, labor, capital. Labor cost is the most important factor.
Labor intensive industry- wages/compensation constitute a large % of expenses. Not necessarily high-wage industry. Ex: textiles- spinning, weaving, assembly
Land-not just space, but climate, access to cheap energy, infrastructure, taxes
Capital- industries need $ and local lending institutions influence where industries locate depending on the amount and terms of $ being lended. Locations of industries in Detroit and Silicon Valley influenced by availability of capital.
LDCs that are high risk because of high national debt, political instability, have trouble attracting industry.
Key Issue 3- Where is industry expanding?
Intraregional scale- industry moving from urban core to suburban/rural periphery. Factories cluster in suburban industrial parks located near highway junctions.
Interregional scale- industry moving from North and East to South and West.
Right to work laws- workers not forced to join union. Unions are weaker in the South, and wages are lower.
International scale- from MDCs to LDCs
In Europe, interregional shifts include from N and W Europe to S and E Europe
Key Issue 4- Why are location factors changing?
New industrial locations are emerging in low cost labor areas.
International corporations locating production in low-wage countries is called outsourcing.
Vertical integration is when a company owns/controls all aspects of production process, from raw materials to retailing finished goods. Most of this is now outsourced.
2 location factors still influence companies to locate in MDCs- availability of skilled labor and proximity to markets.
Just in time delivery- parts/materials arrive moments before they are used in production. Saves $ by eliminating $ tied up in inventory and reduces space of factories. Burden of maintaining inventory shifted to suppliers. Supply chain vulnerable to labor unrest and “Acts of God”
*** See Central place theory and gravity model from ch 12.2
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