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Chapter 11
Industry
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Industry
In this Chapter, Industry refers to the manufacturing of goods
in a factory.
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Key Issue #1
Where is industry distributed?
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Manufacturing Value Added
Fig. 11-1: The world’s major manufacturing regions are found in North America, Europe, and
East Asia. Other manufacturing centers are also found elsewhere.
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The Industrial Revolution
The Modern Concept of Industry began in the late 1700s in
the United Kingdom.
Before the Industrial Revolution, industry was dispersed
geographically.
Business was in the Cottage Industry stage.
The Industrial Revolution was a collection in a variety of
inventions, but the most important invention was that of the
Steam Engine by James Watt
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Industrial Revolution Industries All of these were created during the Industrial Revolution.
Iron – usefulness was known for centuries, but production was impractical until the Steam Engine.
Coal – The main source of energy to run iron mills.
Transportation – critical for diffusion. Canals and railroads were crucial in the spread of the industrial revolution.
Textiles – first industry to be replaced from the cottage to the factory.
Chemicals – industry created to bleach and dye cloth
Food Processing – needed to feed workers no longer living in farms.
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Industrial
Revolution
Hearth
Fig. 11-3: The Industrial Revolution
originated in areas of
northern England and
southern Scotland.
Factories often clustered
near coalfields.
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Industrial Areas in Europe
Figure 11-4
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Industrial Areas in North America
Figure 11-5
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United Kingdom
First country to enter the Industrial Revolution.
Dominated world production of steel and textiles.
Became swaddled with old factories.
Switched to high tech jobs to serve the European
community.
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Diffusion of
Railways
Fig. 11-4: The year by which the first
railway opened shows the
diffusion of railways and
the Industrial Revolution
from Britain.
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Europe’s other centers
Rhine-Ruhr Valley
Mid-Rhine
Po Basin
Northeaster Spain
Moscow
St. Petersburg
Volga/Urals
Kuznetsk/Donetsk/Silesia
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Manufacturing Centers in Eastern
Europe and Russia
Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European Russia,
and the Ukraine. Other centers were developed east of the Urals.
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North America
New England
Middle Atlantic
Mohawk Valley
Pittsburgh-Lake Erie
Western Great Lakes
Southern California
Southeastern Ontario
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Industrial Regions of North America
Fig. 11-6: The major industrial regions of North America are clustered in the northeast U.S. and
southeastern Canada, although there are other important centers.
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East Asia - Japan
Became a power in the 1950’s and 1960’s.
Started with mass production at low costs.
Expanded to electronics and automobiles.
Similar to South Korea
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East Asia - China
Largest supply of low cost labor.
Largest manufacturer of textiles, household appliances and
steel.
Manufacturing is clustered in three areas:
Guangdong and Hong King
Shanghai and Wuhan
Tianjin and Beijing
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Manufacturing Centers in East Asia
Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In Japan,
production is clustered along the southeast coast.
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Key Issue #2
Why are Situation Factors Important?
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Proximity to Inputs
The optimal plant location is close to inputs if the cost of
transporting raw materials to the factory exceeds the costs of
transporting goods to consumers.
The optimal plant location is close to consumers if the cost of
transporting goods to the consumers exceeds the costs of
transporting inputs.
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Why Are Situation Factors Important? Proximity to inputs
Bulk-reducing industries
Examples:
Copper
Steel
Figure 11-8
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Copper Industry in North America
Fig. 11-8: Copper mining, concentration, smelting, and refining are examples of bulk-
reducing industries. Many are located near the copper mines in Arizona.
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Copper Mine in Arizona
The Lavender Pit Copper Mine in Bisbee, Arizona operated between 1951 and 1974.
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Integrated
Steel Mills
Fig. 11-9: Integrated steel mills in the
U.S. are clustered near
the southern Great Lakes,
which helped minimize
transport costs of heavy
raw materials.
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U.S. Steel Mill (Gary, Indiana)
The integrated steel mill of U.S. Steel in Gary, Indiana.
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Nucor Steel Minimills
Fig. 11-10: Minimills produce steel from scrap metal, and they are distributed around the
country near local markets. Nucor is the largest minimill operator.
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Steel Production, 1980
Fig. 11-19a: The U.S., Soviet Union, and Japan were the largest steel producers in 1980.
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World Steel Production, 2005
Fig. 11-19b: By 2005, steel production had increased in developing countries but declined in the
more developed countries.
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Distribution of
Steel
Production 1980 & 2005
Fig. 11-20: Developed countries accounted for
80% of world production in 1980
but only 45% in 2005. LDCs
increased from 20% to 55%.
China is now the world’s largest
producer.
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Shanghai Steel Factory
The Baoshan Iron Steel Company in Shanghai, China
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Why Are Situation Factors Important? Proximity to markets
Bulk-gaining industries
Examples:
Fabricated metals
Beverage production
Single-market manufacturers
Perishable products
Figure 11-10
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Location of Beer Breweries
Fig. 11-11: Beer brewing is a bulk-gaining industry that needs to be located near consumers.
Breweries of the two largest brewers are located near major population centers.
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Chevrolet Assembly Plants, 1955
Fig. 11-12a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located
near major population centers.
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Chevrolet
Assembly Plants,
2007
Fig. 11-12b: In 2007, GM was producing a
wider variety of vehicles, and
production of various models
was spread through the interior
of the country.
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Motor Vehicle
Parts Plants
Fig. 11-13: U.S.-owned parts plants are clustered
near the main final assembly
plants. Foreign-owned plants tend
to be located further south, where
labor unions are weaker.
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Why Are Situation Factors Important? Ship, rail, truck, or air?
The farther something is transported, the lower the cost per
km/mile
Cost decreases at different rates for each of the four modes
Truck = most often for short-distance travel
Train = used to ship longer distances (1 day +)
Ship = slow, but very low cost per km/mile
Air = most expensive, but very fast
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Key Issue #3
Why are Site Factors Important?
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Why Are Site Factors Important? Labor
The most important site factor
Labor-intensive industries
Examples: textiles
Textile and apparel spinning
Textile and apparel weaving
Textile and apparel assembly
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Cotton Yarn Production
Figure 11-16
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Woven Cotton Fabric Production
Figure 11-17
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Production of Women’s Blouses
Figure 11-18
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Why Are Site Factors Important? Land
Rural sites
Environmental factors
Capital
Figure 11-20
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Key Issue #4
Why are Location Factors Changing?
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Why Are Location Factors Changing?
Renewed attraction of traditional industrial
regions
Proximity to skilled labor
Fordist, or mass production
Post-Fordist, or lean production
Just-in-time delivery
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Industrial Expansion
Changing distribution within MDCs
Intraregional shifts in manufacturing
Interregional shifts in manufacturing
New industrial regions
Asia
Latin America
“Central” Europe
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Changing Location Factors
Attraction of new industrial regions
Proximity to low-cost labor
Outsourcing
Renewed attraction of traditional industrial regions
Proximity to skilled labor
Just-in-time delivery
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Sock & Hosiery Manufacturing
Fig. 11-21: Men’s and women’s socks and hosiery manufacturers usually locate near
a low-cost labor force, such as found in the southeastern U.S.
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Labor Cost per Hour MDCs and LDCs
Fig. 11-22: Hourly wages can be under $1 in many LDCs compared to well over
$10 in many MDCs.
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U.S. Clothing Production 1994 - 2005
Fig. 11-23: The percent of U.S. made clothing has declined sharply since the 1990s while
imports have increased.
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Computing Equipment Manufacture
Fig. 11-24: High skill workers are needed for manufacture of computing equipment.
California, the Northeast, and Texas are the major sites.
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Women’s and Girls’ Apparel
Fig 11-25: Products that require more skilled workers are still produced in or near
New York City. Other items are produced in sites with lower cost
labor.
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Fedex
Sorting and
Loading
Packages picked up by Fedex are
transferred to planes, flown to
sorting centers, transferred to
other planes and flown to other
cities, then loaded onto trucks
for delivery the next day.
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Why Are Location Factors Changing? Attraction of new industrial regions
International shifts in industry
East Asia
South Asia
Latin America
Changing distributions
Outsourcing
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Container Ship in Seattle Harbor
Most shipped goods are packed in uniformly sized containers that can quickly be
transferred from ships to trucks or trains.
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Child Labor in Textile Mills
Child labor was common in the textile industry, which was transformed in the
Industrial Revolution. Many spools of thread could be spun simultaneously if they
were connected to a steam engine.
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Cotton Yarn Production
Fig. 11-14a: Production of cotton yarn from fiber is clustered in major cotton growing
countries, including the U.S., China, India, Pakistan, and Russia.
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Distribution
of Cotton Yarn
Production
Fig. 11-14b: Three-quarters of cotton
yarn is produced in less
developed countries.
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Chinese Textile Mill
Fig. 11-14c: Machine spinning spools of cotton at a textile mill in Zhengzhou, Henan
Province, China.
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Woven Cotton Fabric Production
Fig. 11-15a: Production of woven cotton fabric is labor intensive and is likely to be located in
LDCs. China and India account for over 75% of world production.
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Distribution of
Woven Cotton
Fabric
Production
Fig. 11-15b: Over 80% of cotton fabric
production is located in
less developed countries.
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Cotton Factory in India
Fig. 11-15c: Cotton looms in a factory in India.
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Trouser Production
Fig. 11-16a: Sewing cotton fabric into men’s and boys’ trousers is more likely to be located in
developed countries, but much production now occurs in LDCs.
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Distribution of Trouser Production
Fig. 11-16b: The majority of trouser production is in MDCs, near customers.
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New York Garment District
Fig. 11-16c: Women sewing garments in the Garment District in New York.
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U.S. Production Workers
1950 & 2005
Fig. 11-17: States in the Northeast and Southern Great Lakes traditionally associated with
manufacturing accounted for two-thirds of manufacturing in 1950 but only
two-fifths of manufacturing in 2005.
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European Union Structural Funds
Fig. 11-18: The European Union provides subsidies in regions with economic problems due
to declining industries.