The Changing Location of Industry AP Human Geography Industry and Services Unit

For today, 03/10 Turn in your Irving, Texas, Honda Analysis We will be taking notes today about the changing locations of industry.

Weber’s Industrial Model/Theory Industrial equivalent of Von Thünen’s Model Location of manufacturing plants is determined by considering (assuming goal is to minimize cost/maximize profit): (1.) Location of raw materials (2.) Location of market (3.) Transportation costs

Applications of Weber’s Theory (1.) Location of raw materials is evident from the map (2.) Steel is a bulk-reducing industry, so factories should be located nearer to the raw materials to minimize transportation costs (3.) Agglomeration – the clustering of mills is evident around Chicago and Pittsburgh, which can provide cheaper labor

Changes in Industrial Location Fordist production vs. Post-Fordist production Mass production at one site vs. Outsourcing Transportation: break-of-bulk points and container transport (containerization) Energy: oil and gas replaces coal post WWII transported by pipelines and tankers Regional and global trade agreements NAFTA, EU, WTO Maquiladoras in Mexico Time-space Compression World has never been more connected Call centers for US companies in India

Changes in US Industry American owned parts plants are clustered near the final assembly plants in the Rust Belt. Foreign-owned plants tend to be located farther south, where labor unions are weaker, wages, taxes and regulations are lower.

Deindustrialization Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment. NIC = Newly Industrialized Country * China (SEZs) BRICS = NICSs w/ growing economy Brazil Russia India China South Africa

Steel: from core to periphery and semi- periphery