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AP Human Geography: Industry (Ch 11)

AP Human Geography: Rubenstein Text
by

Michael Tornetto

on 31 January 2014

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Transcript of AP Human Geography: Industry (Ch 11)

Industry
Key Issue 1: Where is Industry Distributed
Origins
Regions
Begins in England in the late 1700's
Each Technological Innovation spured further innovation and change.
Watt's Steam Engine (1769)
Boost to Iron Production (Quality/Purification and Efficiency)
Large scale use of Coal and Coke to power smelters and forges
Diffusion of Rail and Canal Transportation Networks
Arkwright's Spinning Jenny (1768) ends the Cottage System and pools labor near power sources (initially water)
Chemists refine and improve processes for bleaching and dyeing cloth
Appert's Canning process (1810) allows for rapid urbanization
Ulitimately led to a higher standard of living, initiated stage 2 of the Human Demographic Transistion and prompted broader changes in the Social, Economic,and Political fabric of soceity
Historic Steel and Textile
Today High Tech Manufacturing
In Europe Most "Laissez-Faire"
Ind. Heart of Europe
Iron and Steel
Rail, Machinery, and Arms
Rotterdam = Worlds Largest Port
Iron-Ore Deposits
Ger. Financial and Commercial Centers
Road, Rail, and Air Hub
High Value Industry (Mercedes/Audi)
Chemical and Pharmaceutical Industries
2/3 of Italy's Manufacturing
Historic Textile center
Cheap Hydro-Electric
Cheap Labor (poor southern Labor)
Capital and Large Market Access
Fabrics and Skilled Labor Availability
E.Europes 2nd Largest City (Westward Oriented)
Shipbuilding with extensive Naval and Port Facilities
Petro and Natural Gas
Auto, Petrol-Chemical, Leather, Smelting
Mineral Resources and Related Industries (Proximity)
Eastern Most Manufacturing Center
Coal and Iron Production
Steel and Coal Center
Eastern Europe Ind Heart (excluding USSR)
Coal, Iron, Steel, Natural Gas
US Textile Industry Exploded Following The Revolutionry War (Cotton Gin and Slavery Played Key Roles)
By 1860 Second Most Industrialized Nation
Abundent Goal and Iron
Major River, Great Lakes and Connected Canals and Rail were all assets to New England and the Upper Mid West.
Textile (King Cotton)
Financial, Communications, and Entertainment Industries benefit from access to the largest US market of consumers.
Steel and Food Processing
Cheap Hydro-electric (Niagra Falls)
Aluminum, Paper and Electrochemical Companies.
Former Steel Production Powerhouse
Iron and Coal Availability
Users of Steel in Industry
Chicago Rail Hub and Transportation Confluence
Center of Steel Production
Auto, tools, equipment, clothing, furniture, heavy machinery, and food products for consumption by the American interior.
Steel and Auto Ind
Cheap Hydro-electric
Aluminum, paper, textile, sugar refining, and flour mills.
Industrial Boom during and after WWII
Increased with further economic ties to Asia
Aircraft, Clothing, Furniture, Food Processing
Cheap Immigrant Labor
Gateway for Pacific Imports
Hollywood and Movie Industry
Today Silicon Valley Bay Area
2nd and Third Largest Economies and Manufacturers
Historic Rise in 1950's & 1960's = Low Cost, Low Wage
1980's faced with competition from Korea, Taiwan, and others shiften to highly skilled manufacturing
"Made in Japan" meant "cheap" now means "quality" cars and electronics
Current largest supplier of low cost labor
Large market for consumer products especially as it developes
Produces, Steel, Textiles, and Household Products
Wealth, Industry, and Investments Concentrated.
Key Issue 2: Why Are Situation Factors Important?
Proximity to Inputs
Proximity to Markets
Ship, Rail, Truck, or Air?
Factory should locate closest to the factors with highest transportation cost
Copper: A Bulk-Reducing Industry
Mining (0.7% copper)
Concentration (.25% copper)
Smelting (.60-.99% copper)
Refining (99.99%) - Not bulk-reducing
Steel: Changing Importance of Inputs
Largest inputs are iron and coal
Shift westward toward Coal and Iron Deposits
1950's Shift to the coasts due to imported Iron Ore and increased utilization of Scrap
Today what is left is centrally located in US on lower lake michigan or near population centers as minimills (scrap become largest input factor)
Fabricated Metals: Bulk-Gaining Industry
Converting and combining metal to produce component pieces or finished products (TV's, Frig, Air Conditioners, Automotive Parts and Cars, etc)
High Shipping Cost - Locate factory close market
3/4 of vehicles assembled in USA, remainder nearby in Mexico or Canada.
Auto Alley
Beverage Production: Bulk-Gaining Industry
Empty Bottles filled with product.
Water is bulkiest component: Decrease bulk through (soda fountains)
Water is widely available, locate factory close to market
Single-Market Manufacturer
one/two customers...auto-parts
locate factory nearby
"just-in-time" delivery has reduced storage costs
Perishable Products
short life (bread, milk, newspaper)
locate near consumer
Cost is not just distance but loading and unloading costs.
Trucks = Quick Load, Short Distance
Rail = Slow Load and unload, Long Distance
Ship = Low Cost, Slow, Necessary for Global Trade
Air = Quick but Expensive.
Mix when possible: Containerization has lowered load costs.
Buisness locate at Break-of-Bulk Point = Convergence of Air, Sea, and Rail Hubs...especially when you factor in market access in cities.
Key Issue 3: Why Are Site Factors Important?
Labor
Most Important Factor
China 1/4th of Global Manufacturing
India 1/5th of Global Manufacturing
Combined MDC's 1/5th Manufacturing
In the US Labor Intensive is over 11% of cost.
Average manufacturing pay in MDC's is $20 per hour + benefits
Average manufacturing pay in LDC's is $5 per hour + no/spars benefits
Labor Intensive = High Wage
Textile = Labor Intenisve -- 6% in dollar value but 14% employment
3/4th Synthetic Fiber and 1/4 natural
Heavy reliance of Femal Labor
Assembly more likely to be done in MDC's
Land
"terra firma" but also natural & human resources
Early Factories = Urban and Multi-Story
Today = Rural trend and Single-Story
Capital
Business Loans at Low Interest
Michigan Auto Industry
California Silicon Valley
Bigger issue in LDC's Today
Higher Loan Risk
Unstable Political Systems
High Debt-Levels (National and Personal)
Ill-Advised Economic Policies
Key Issue 4: Why Are Location Factors Changing
Interregional Shift in the USA
Shifting Manufacturing from Northeast to the South and West since 1950.
Why?
Air Conditioning
Interstate Highway System
State/Gov. Policies (TVA, Right-to-work laws).
Lower Labor Costs
Gulf oil and natural gas access
Interregional Shifts in Europe
Shifting Manufacturing from Northwest to Southern and Eastern Europe
Lower Labor Cost
No longer politically or physically isolated from N.W. Europe. (Spain, Soviet Bloc)
International Shifts in Industry
Shifting manufacturing from Europe and N. A. to LDC's.
1970 = 1/6
2010 = 1/2
Especially stark trend in Steel and Clothing
Outsourcing (Multi-nationals)
"turning over production to independent suppliers"
Ideal only for companies that are...
labor-intensive
unskilled emphasis
not excessively bulk-gaining
Renewed Attraction fo Traditional Industrial Regions
Proximity to Skilled Labor
Just-in-Time Delivery
vulnerable to...
Labor Strikes
"Acts of God" = tsunami
http://www.cnn.com/videos/cnnmoney/2015/01/06/the-story-behind-oil-price-plunge-crane-orig.cnn
US Oil Production - Proximity to Input?
- Proximity to Market?
Full transcript