Chapter 11

Industry (manufacturing of goods in a factory)

maquiladoras

Cottage industry

system: home-based

manufacturing

Key Issue 1Where is industry

distributed?

Industrial Revolution:

James Watt’s steam engine in 1769

Origin of Industry:

Industries first impacted by

the Industrial Revolution:

- Iron

- Coal

- Transportation

- Textiles

- Chemicals

- Food processing

Europe’s Industrial

Areas

UK

Rhine-Ruhr Valley

Mid-Rhine

Po Basin

Russia

North America’s Industrial Areas

The first U.S. textile mill

opened in Pawtucket,

Rhode Island in 1791

New England Middle Atlantic Great Lakes

Southeastern Ontario Southern California

Key Issue 2 Why are situation factors

important?(situation factors involve

transporting materials to and from

a factory).

Bulk-reducing industry –

inputs weigh more than the

final product – need to

locate near its sources of

inputs

ex: copper

Steel: industry moved throughout 19th and 20th centuries as location

of inputs shifted from local to overseas – the more iron was shipped

in the more important it became to be closer to markets than inputs

Proximity to markets

- bulk-gaining industries

make something that gains

volume or weight during

production

ex: beverages

Single-market

manufacturers: cater to

one or two customers

ex: auto parts delivered

“just-in-time”

Perishable products:

ex: milk, bread, fruit,

newspapers

Inputs and products are transported by:

Ship – most common for international and very long distances

rail – used for long distances on land

truck – most common for short trips (1 day or less)

air – most expensive so often only for high-value but small packages

break-of-bulk point: location where transfer among

transportation modes is possible

Key Issue 3 Why are site factors important?

Site factors result from the unique

characteristics of a location.

3 traditional factors are land, labor,

and capital

Labor-intensive industries:

industries in which wages and

other compensation paid to

employees constitute a high

percentage of expenses.

ex: textiles (woven fabric)

Labor

MDC’s = $20+ p/hour

LDC’s = $5 p/hour

Land Rural sites:

modern factories want more space and

convenient access to major highways

Environmental factors:

factory locations may also be

chosen do to climate,

topography, or even cultural

factors. More and more

companies are trying to

locate near cheap power

sources

Capital

Many factories are located near funding sources

ex: Detroit, Silicon Valley

LDC’s need investment and loans from banks and

companies in MDC’s

Labor is the site factor that is changing

drastically in the 21st century. To

minimize labor costs, some

manufacturers are locating in places

where prevailing wage rates are lower

Interregional shift in the U.S.

from the Northeast to the

South and West

Right-to-work states with

“open shop” laws helped

fuel the move.

Is Utah an “open shop” or

“closed shop” state?

International shifts in industry:

Europe moved from Northwestern Europe to Southern and Eastern

Europe, East Asia, South Asia, and Latin America

Changing distributions:

- new international division of labor

- outsourcing

Renewed attraction to

traditional industrial regions

Proximity to skilled labor Just-in-time delivery

All photos:Sean Simons