Topic: Types of Manufacturing Unit 5 Topic: Types of Manufacturing

Types of Manufacturing Pg. 217-218 …As either requiring large quantities of labour or machinery to do the processing.  Labour intensive: requires a lot of person hours to produce the product. Ex. Jewelry making, pottery, crafts, customization… Capital intensive: requires a lot of equipment/computers to make the product. Ex. Automotive industry, bottling plant, pulp mill

Types of Manufacturing …can be classified based on  the output.  The products made! Who uses the end product? Consumers or Businesses? Heavy industry: produce products for other industry or businesses. large quantities of material, labor used outputs/products are usually high priced. Ex. Ship yard, tractor production, helicopters Light Industry: - produces products for consumers use. - smaller in size and cheaper Ex. Pop industry, toys, clothing, food products. Pg. 218

Classify the following as labour or capital intensive and light or heavy industry. Making water turbines? Labour intensive heavy industry Assembling televisions? light industry Shirt manufacturing? Light industry Ship building? labour intensive Pg. 218 Figure 13.2

Some Practice…

Read pages 216-218 – NOW!!!!

Location of Manufacturing Industries Factors Affecting Industry Location = COSTS$$$$$$$$

Site/Physical Cost Factors Pg. 224 Proximity to raw material Land Energy

Site/Physical Cost Factors Proximity to raw material. Closer to the resource IF heavy / bulky ( Ex. Wood, minerals etc.) REASON: to reduce transportation costs $$$$$. Pg. 224

Site/Physical Cost Factors Land a good price $$$$$ level area good drainage, dense well-settled soil etc. Energy Cost of obtaining? Obtain enough? Type?

Resource-Oriented industry VS Market-Oriented Industry are located close to the resource , where it is harvested or collected MAIN REASON(s): the inputs are heavy/bulky & more costly to transport. near the resource to reduce its wastage / weight AND cost BEFORE transporting. Examples: Wood, minerals, fishing, oil etc.

Human-Based Cost Factors Pg. 224 Resource-Oriented industry VS Market-Oriented Industry Market-Oriented Industry located close to the buyers. Ingredients ADDED to it LATER. Ship the light weight product and ADD to it near the market REASON: SAVES $$$$ on shipping ingredients that can been found near the market. EX. WATER, SOIL

WEIGHT-GAIN VS. WEIGHT-LOSS ALSO resource-oriented! Scrap and wastage will be removed from the resource. This DECREASES the weight of the finished product / resource. Weight of THE RESOURCE is greater than the finished product. reducing the extra weight and therefore extra cost of transporting waste!

WEIGHT-GAIN VS. WEIGHT-LOSS Market-oriented Ingredients will be ADDED to the resource LATER. This INCREASES the weight of the finished product / resource. Weight of END PRODUCT is greater than the input resources reducing the extra cost of extra weight!

Agglomeration Tendency The tendency for factories producing related products to locate close to each other for mutual benefit. Ex. Car factory & tire factory. How does each benefit by being located close to each other?

Industrial parks Industrial parks are attractive because of: Existing infrastructure of roads, on ramps and off ramps to highways, large lots, sewer, ample electricity etc. Close location to related industries Pool of skilled workers

Human-Based Cost Factors Labor force characteristics that attract business… Wages expected: lower wages are better. Training: highly skilled people are better. Benefits: lower costs of employment insurance, pensions, etc. are better. Availability: high unemployment rate might attract business…large available labor pool

Government Influences Transportation subsidies Subsidies allow businesses to locate farther from the resource. Subsidies allow governments to encourage industry in rural areas. Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf. (Ferry Service)

Government Influences 2. Tax breaks Provinces like NL have attempted to attract business by offering tax breaks.  The company obtains a financial break while the province gets the advantage of putting people to work.

Industry Location; The Global Picture The highly industrialized areas on the earth's surface are concentrated in 4 definite regions: North America, Western Europe, Japan, and Australia Western Europe North America Japan Australia Pg. 223 fig. 13.6

Manufacturing Wrigley’s Gum Case Study Manufacturing Wrigley’s Gum ( handout ) Gum - How It’s Made ( 5 min. Video)