AIM: Why are location factors changing? Do Now: Which state has the highest minimum wage? Which state has the lowest minimum wage?

I. Attractions of New Industrial Regions Proximity to low cost labor The textile and apparel industry opens many production plants in lower wage locations while shutting down production in higher wage areas. In the United States, it shifted from the North East (low cost immigrants) to the South east in the Mid 20th century. (Appalachians, Piedmont and Ozark Mountains, the Carolina’s, Northern Georgia, and Alabama)

Right to Work Workers in these areas show little interest in joining unions.

II. Outsourcing Transnational corporations have been aggressive in using low cost labor in LDC’s. The extra transportation cost is off set by significantly lower labor costs. Operations that require highly skilled workers still remain in MDCs.

The New International Division of Labor The selective transfer of jobs is known as the new international division of labor. Often times the foreign operations are overseen by independent companies.

Questions How is outsourcing harmful to LDCs? How is outsourcing harmful to MDCs?

Labor Cost per Hour in clothing manufacturing

Did-It Search Marketing Runs advertising campaigns on google adwords, MSN adcenter and Yahoo Overture. Company to client calls and major operations were handled by the client-services team in house on Long Island and in Manhattan. Simple but large jobs were handled by a company called Theorem

Did-it’s partners at theorem were located in They worked night shifts so they could communicate with Did-it during Did-it’s normal working hours.

Outsourcing Conclusion Due to outsourcing, each step of the production process is now scrutinized closely to determine the optimal location.

III. Renewed Attraction of Traditional Industrial Regions Proximity to skilled labor. Many industries prefer having skilled laborers. In the past, factories traditionally assigned each worker one specific task to perform repeatedly. Some geographers call this approach Fordist (mass production) A new form of production has developed known as Post-Fordist.

Characteristic of Post-Fordist Systems 1. Teams -Workers are placed on teams and told to figure out for themselves how to perform a variety of tasks. 2. Problem solving – A problem is addressed through consensus after consulting with all affected parties rather than through filing a complaint or grievance.

Post-Fordist Continued 3. Leveling- Factory workers are treated alike and managers and veterans do not get special treatment; they wear the same uniform, eat in the same cafeteria, park in the same lot, and participate in the same athletic and social activities. Ex: Computer Manufacturing. ( Silicon Valley California, New York, Massachusetts and Texas)

Just-In-Time Delivery Companies that specialize in Just-in-Time delivery must be located in the same country as the company for which they are delivering the product. This helps keep factory jobs in MDCs. This reduces the amount of money tied up in inventory. -can lead to two types of problems

Just in time Delivery can be upset by two types of events. Labor unrest Acts of God (blizzards, floods, terrorist attacks)