human geography - · pdf fileoverview secondary economic activity manufacturing u.s auto...
TRANSCRIPT
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HUMAN
GEOGRAPHY
By Brett Lucas
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ECON. GEOG. - SECONDARY
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Overview
Secondary economic activity
Manufacturing
U.S Auto Industry
Textiles
Steel Production
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Economic Geography
Primary economic activity
Closest contact with natural resources
Generally, lowest income
Secondary: value added (manufacturing)
Tertiary: services for primary or secondary
Quaternary: information-based services
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Secondary Economic Activity
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Secondary economic activity
Site and situation for industry
Weber’s locational triangle
Globalization and manufacturing
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Secondary economic activity
The secondary sector of industry includes those economic sectors that create a finished, usable product: manufacturing and construction
This sector of industry generally takes the output of the primary sector and manufactures finished goods or where they are suitable for use by other businesses, for export, or sale to domestic consumers
This sector is often divided into light industry and heavy industry
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Secondary economic activity
Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products
They also produce waste materials and waste heat that may pose environmental problems or cause pollution
Adding value to primary products
Manufacturing, processing, energy, construction
Where? culture and economy > physical environment
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Secondary economic activity
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Industrial Revolution
1750s in Great Britain
From cottage industry to factories
Technological change: steam engine
Iron: blast furnaces stay hot
Coal needed as fuel
Steam locomotive (1812)
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Industrial Revolution & geography
Clustering of industrial activity
New or old cities
Rapid population growth
Social changes
New industries: chemicals, food processing
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Industrial Revolution Hearths
The Industrial
Revolution originated
in areas of northern
England
Factories often
clustered near
coalfields
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Where does industry locate?
Situation factors
Cost of carrying inputs vs. outputs
Accessibility to different modes of transportation
Site factors
Cost of land
Cost and skill of labor
Availability of capital
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Agglomeration economies
Economies of scale: producing additional units
costs less than producing the first few
Benefits of concentrating many firms in one
place
Benefits of concentrating many firms in one
industry in one place
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Manufacturing
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Manufacturing Regions
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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Industrial Regions of North America
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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Manufacturing Value Change
The value and growth of manufacturing in major metropolitan areas in the
U.S. between 1972 and 1997
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Manufacturing Centers in Eastern
Europe & Russia
Major manufacturing centers are clustered in European Russia and the
Ukraine. Other centers were developed east of the Urals
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Five location factors
Raw materials
From primary activity or manufactured goods
Most important when:
Bulky or heavy inputs
Lose weight in processing
Perishable inputs
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Five location factors
Market
Final consumer or another firm
Most important when:
Bulky or heavy outputs
Weight added in processing
Perishable outputs
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Five location factors
Energy
More important historically than today
Mills in Britain, New England, etc.
Labor
Price, skill, availability
Usually not mobile
Transportation
Costs vary by mode, distance, transfers
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Five location factors
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Copper Industry in North America
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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Steel Mini-mills
Mini-mills produce steel from scrap metal, and they are distributed around the
country near local markets. These are the two largest mini-mill operators
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Location of Beer Breweries
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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Globalization
Increasing interconnection of the world
Economic
Stock markets, international finance
Transnational corporations
Political
Cultural
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U.S. Auto Industry
Ransom Olds (Oldsmobile, and later a division of
General Motors) started the concept of the
assembly line with the curve dash olds in 1896
(based on a buggy carriage platform)
Henry Ford’s Model T assembly line, took Ransom’s
concept a step further streamlining the process
Large batches of a standardized product
Large inventory in warehouse
Workers could afford to buy product
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U.S. Auto Industry
1904 Olds Model 6C
Curved-Dash-Olds Ford assembly line 1913
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Chevrolet Assembly Plants, 1955
In 1955, GM assembled identical Chevrolets at ten final assembly plants
located near major population centers
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Chevrolet Assembly Plants, 2003
In 2003, GM was
producing a wider
variety of vehicles,
and production of
various models
was spread
through the middle
of the country
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Site selection for Saturn
GM considered a variety of economic and geographic factors when it searched for a site for producing the new Saturn in 1985
The plant was eventually located in Spring Hill, TN
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Motor Vehicle Parts Plants
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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Agglomeration economies
Certain places concentrate in certain products
Cars in Detroit,
Steel in Pittsburgh,
Chemicals in New Jersey
Considerable multiplier effects
Strong industrial regions
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Agglomeration economies
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Agglomeration economies
Overall view of U.S. Steel's
Homestead Works as it looked in
1989 after it was shut down
Two trains rumble through
Muncie, IN, on a summer
Sunday afternoon
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…to flexible production
Cheap long-distance transportation
Separate out production processes
More flexible production
Small batches, not mass production
Workers forced to be flexible
Just-in-time: minimize warehousing
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…to flexible production
The five location factors matter at each stage
of production
One production line, many continents
Rapid growth where labor is cheap
“Race to the bottom”
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…to flexible production
Places specialize by function, not product
New York: “command and control”
India, Ireland: call centers
Jamaica, Dakotas: data processing
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Five location factors: textiles
Labor: largest percentage of cost (and low-
skilled)
Raw materials: cotton, other fibers
Market: population concentrations
Energy: moderately important
Transportation: not too important
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Five location factors: textiles
Spinning fiber into yarn
Close to cotton, fiber production
Weaving yarn into fabric
Low labor costs
Designing clothing
Skilled labor needed
Cutting and sewing
Unskilled labor
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Five location factors: textiles
Where is labor cheapest?
High unemployment
Few or weak unions
Immigrants and/or women
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Five location factors: textiles
Stage 1: Early industrial cities
Lowell, MA; Manchester, UK
Stage 2: Underdeveloped regions
Southern U.S.
Stage 3: Underdeveloped countries
Mexico and southwards
East Asia and westwards
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Cotton Yarn Production
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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Woven Cotton Fabric Production
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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Shirt Production
Sewing cotton fabric into men’s and boys’ shirts is more likely to be
located near customers in MDCs, but much production now occurs in LDCs
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Hosiery and Sock Production
Hosiery
manufacturers
usually locate
near a low-
cost labor
force, such as
found in the
southeastern
U.S.
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Knit Outerwear Manufacturing
Knit outerwear requires more skilled workers, and much manufacturing is still clustered in or near New York City.
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Clothing production sites
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Transnational corporations (TNCs)
Firms operating in more than one country
Exploiting spatial differences
But are they global?
90% headquarters in Europe-US-Japan
75% of investment, too
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Transnational corporations (TNCs)
Company Country with
comparable GNP
General Motors Indonesia
Ford Iran
Exxon Turkey
IBM Venezuela
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Industrial Problems
Global perspective
Stagnant demand
Increased capacity
More developed countries
Trading blocs
Disparities within trading blocs
Less developed countries
Old problems for LDCs
New problems for LDCs
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World Steel Production, 1973
The U.S., Soviet Union, and Japan were the largest steel producers in 1973, and
with the rest of Europe, accounted for 90% of global steel production
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Steel Production, 1973 and 2002
About 60% of global
steel production takes
place in MDCs in
2002, compared to
90% in 1973.
Growth of steel
manufacturing in China
has been especially
dramatic.
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Change in Steel Production 1973–2002
Steel production has generally declined in
MDCs and increased in LDCs, especially in
China, India, Brazil, and South Korea
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Change in Steel Production 1973–2002
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Change in Steel Production 1973–2002
Steel production has
generally declined
in MDCs and
increased in LDCs,
especially in China,
India, Brazil, and
South Korea.
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Electronic Computer Industry
Computer and parts manufacturing requires highly skilled workers and capital.
It is clustered in the Northeast and the West Coast.