______________________________ Think of the different industries that come together to make something as simple as: ______________________________
ALUMINUM WHEELS What were the raw materials? What were the steps in processing it? What assembly is required for the final product?
Secondary Industry Manufacturing or Construction Turning raw materials or semi-finished products into a new product Often there are several steps involved (i.e. refinement) Assembly of products is also part of the Secondary Industry The transportation and services needed in between form a crucial part of the Tertiary Industry
Many manufactured goods come from far-off places… SHOES SHIRT PHONE BAGS HAT
Location & Manufacturing - identify and describe location factors that influence manufacturers - identify the patterns of manufacturing in Canada - explain why a national patterns exists for different kinds of manufacturing
Location Factor factor such as historical head start, market, location of raw materials, power, and fresh water, labour, transportation, and politcial factors that help explain the location of cities and industries
Availability of Raw Materials manufacturers require a reliable source of raw materials. Some manufacturers will locate near the source of the raw material if there is an economic advantage. ie. fruits and vegetables or lumber
Location of Markets often a manufacturer will locate close to their market (customer base) to take of advantage of things like minimized delivery costs and minimum delivery time. if the market is quite broad (ie. all over the world) then the manufacturing location does not matter. other location factors may be more important than having nearby markets. (ie. fruit processing)
Availability of Fresh Water & Power fresh water is a main requirement in many manufacturing processes. historically moving water was used to generate power to operate the equipment. it still is today but in the form of cheap hydro- electricity
Labour Supply the cost and availability of a labour supply are important in deciding where to locate the amount of labour available impacts how much an employer can pay their workers (supply and demand) Canada can’t compete with low wages in 2nd & 3rd world countries. Most good paying jobs in Canada now require advanced skills. manufacturers locate in areas with universities, colleges and apprenticeship programs.
Transportation fast, efficient and/or econimical transportation is imperative manufacturing will establish itself where it can take advantage of the transportation systems that meet their needs Cost $$$$ - Air, Truck, Train, Ship (notice a connection between speed and cost?)
Political Factors government (all levels) needs to attract and keep industry with a good business environment. to do this they make direct and indirect decisions Direct - offering reduced taxes or free land Indirect - improving infrastructure (ie. highways)
Circumstance often general and difficult to measure entrepreneur: sees potential for a new business and takes the risk to make it happen. They get to decide where the business will be located (often in hometown). accident: due to a previously successful company many smaller companies start up (ex-Nortel employees) branch plants: built by foreign countries before free trade to avoid tariffs (ie. GM & Ford)