Manufacturing & Industrial Manufacturing & Industrial Location Theory – Chapter 10Location Theory – Chapter 10 Questions – Assignment 2?Questions – Assignment 2? 3 lectures left!3 lectures left! Chapter 11 Reading Guide:Chapter 11 Reading Guide:

– High TechnologyHigh Technology– Cycle TheoryCycle Theory– Fordism-Flexible SpecializationFordism-Flexible Specialization

AgricultureAgriculture– TrendsTrends– ErasEras– Von ThVon Thüünen and Location theory nen and Location theory

High TechnologyHigh Technology

High technology is New technologyHigh technology is New technology– Semi-conductors, software engineering Semi-conductors, software engineering

biotechnology, new materialsbiotechnology, new materials– Complementary role of servicesComplementary role of services– OutsourcingOutsourcing

Metropolitan centres retain Metropolitan centres retain competitive advantage for high tech competitive advantage for high tech mfg.mfg.

Cycle TheoryCycle Theory

Regions (Chap 11)Regions (Chap 11) Products (Chap 10)Products (Chap 10) Biological development metaphorsBiological development metaphors

– YouthYouth– MaturityMaturity– Old ageOld age

From Fordism to Post-Fordism From Fordism to Post-Fordism &&

Flexible SpecializationFlexible Specialization FordismFordism

– Mass production & economies of scaleMass production & economies of scale– Assembly lineAssembly line– SpecializedSpecialized

Post-FordismPost-Fordism– Economies of scopeEconomies of scope– Constellations of small firmsConstellations of small firms– NetworksNetworks– Flexible specializationFlexible specialization

Rapid switching among productsRapid switching among products Multi-purpose machines and workersMulti-purpose machines and workers New industrial districtsNew industrial districts

AgricultureAgriculture

Rural-Urban contrastRural-Urban contrast Population:Population: ~ 20% rural population~ 20% rural population

• ~ 15% rural, non-farm~ 15% rural, non-farm• < 5% rural farm< 5% rural farm

Labour force:Labour force:• 3.1% in agriculture3.1% in agriculture

Rapid gains in productivityRapid gains in productivity

Capital intensive agricultureCapital intensive agriculture

Structural Change in Cattle Production: The Big XStructural Change in Cattle Production: The Big X

Statistics Canada, Census of Agriculture

Focus on Two Regions and a Single Class of CattleFocus on Two Regions and a Single Class of Cattle

Statistics Canada, Census of Agriculture

Agriculture and Policy: Why does agriculture have Agriculture and Policy: Why does agriculture have such a huge role on the policy agenda?such a huge role on the policy agenda?

Strategic importanceStrategic importance• Urban dependenceUrban dependence

Supply volatilitySupply volatility• Weather/disease/pestsWeather/disease/pests• Capital intensiveCapital intensive

Demand volatilityDemand volatility• TradeTrade• Preferences/technology changePreferences/technology change

Commodity pricesCommodity prices Close links to many other sectorsClose links to many other sectors

11stst Agricultural Revolution Agricultural Revolution

PaleolithicPaleolithic• Hunting/fishing/gatheringHunting/fishing/gathering

Neolithic Revolution 10000-12000 BPNeolithic Revolution 10000-12000 BP• CultivationCultivation• DomesticationDomestication

Social surplusSocial surplus• UrbanizationUrbanization• Division of labourDivision of labour• Written languageWritten language• StateState

Agrarian civilizationAgrarian civilization

22ndnd Agricultural Revolution Agricultural Revolution c. 1750 break down of feudalism and common field

systems linked with industrial revolution and increasing population pressure and urban

growth use of fertilizer, crop rotation and

mechanization use of legumes to restore soil nitrogen improved breeding plants & livestock gradual rural depopulation mechanization

33rdrd Agricultural Revolution Agricultural Revolution

c. 1928 collectivisation in the Soviet Union Sovkhoz: state farms

• really huge grain and meat factories Mechanization via internal combustion Chemical fertilizers/herbicides/ Pesticides/Pharmaceuticals Biotechnology

EcumeneEcumene

Settled area of earth’s surfaceSettled area of earth’s surface Arable land and some pastureArable land and some pasture Agriculture is geographically dispersedAgriculture is geographically dispersed Extensive land use relative to most Extensive land use relative to most

othersothers Intensity of land use:Intensity of land use:

• Labour to land ratio (person hours/acre)Labour to land ratio (person hours/acre)• Capital to land ratio ($/acre) Capital to land ratio ($/acre)