Industry Chapter 11

Where did industry originate?

What did Europe look like proximate to the Industrial Revolution? Home based manufacturing (known as cottage industry) On a small scale Dress found at http://ethnologyandtextilesmttu.com/tag/1700s/

The Industrial Revolution (Cont) Why did it begin in Great Britain? capitalist system guilds had created a middle class of workmen people free to form businesses education patent system encouraged development labor: Jethro Tull’s seed drill (1701) and other developments > improved productivity in farming > people can leave farms and work elsewhere

The Industrial Revolution (cont) Why did it begin in Great Britain? (CONT) raw materials (iron ore, coal) rivers, canals, harbors (ease in trade) small, compact size (iron and coal near rivers and harbors) existing banking system (borrow $ to buy machinery) stable political system colonies (guaranteed markets, additional raw materials)

Flow of Capital into Europe, 1775 Needed flow of capital in order to fuel the industrial revolution. United Provinces = The Dutch

How did the industrial revolution diffuse? Where did industry originate? Key Issue #1 How did the industrial revolution diffuse?

Important Innovation 1 The Steam Engine Patented by James Watt in 1769 Was the first (there had been steam engines in ancient times) to be able to make one efficient enough to power other things than itself http://www.powerhousemuseum.com/exhibitions/boulton%26watt.php

Important Innovation 2 Puddling and rolling of iron By Henry Cort in 1783 Iron purification process that increased the manufacture of iron Puddling furnace homepage.ntlworld.com/m.low1/PDF/iron_mill.pdf

Important Innovation 3 Railways or “iron horse” Two key inventions: A locomotive using Watt’s steam engine Iron track The Rocket

Important Innovation 4 Chemicals Sulfuric acid, chlorine gas and lime, vitriol Today, the largest textile factories are owned by chemical companies http://www.google.com/imgres?hl=en&client=firefox-a&hs=9Ha&sa=X&rls=org.mozilla:en-US:official&biw=1303&bih=573&tbm=isch&prmd=imvns&tbnid=rszbuyzQ49i7fM:&imgrefurl=http://www1.curriculum.edu.au/ddunits/units/ls3fq2acts.htm&docid=kRCIuzhOJPQEEM&imgurl=http://www1.curriculum.edu.au/ddunits/images/ls3fq2_2.gif&w=405&h=259&ei=1R4jT53MF8vlggfy2pXeCA&zoom=1&iact=hc&vpx=229&vpy=97&dur=1534&hovh=179&hovw=281&tx=170&ty=116&sig=101900197497240095139&page=1&tbnh=105&tbnw=164&start=0&ndsp=21&ved=1t:429,r:8,s:0

Important Innovation 5 Food preservation techniques Canning by Nicholas Appert (done in glass jars) Peter Durand’s tin can

The Industrial Revolution (cont) Effects economic: more goods at lower prices social: available labor leaves farms and clusters in cities urban blight, pollution canned food (encourages new industry) political: surplus labor > mistreated workers > liberalism and communism

The Industrial Revolution (cont) Effects technological: > railroad, steamship agricultural: > 2nd Agricultural Revolution increased productivity use of machinery > larger farms > enclosures demographic: caused move from Stage 1 to Stage 2 of DTM

Where is industry distributed? Key Issue #2

Diffusion of Industrial Revolution

Early diffusion eastward to Belgium, France, and Germany (early 1800s; delay due to Napoleonic Wars) further diffusion to Italy, Netherlands, Russia and Sweden by late 1800s U.S. not affected by political instability in Europe: diffusion by early 1800s 8,000 spindles of textiles in 1808 > 80,000 spindles by 1811 by Civil War, U.S. was world’s 2nd largest industrial power

Why do industries have different distributions? Key Issue 3

It’s all about situation factors Inputs Factory Consumers Each industry has to consider what costs more: to transport inputs or to transport the final product to consumers? Factories are located to REDUCE cost

Bulk-Reducing Industry If the cost of transporting inputs is greater than the cost of transporting the final product to the consumer… you place the factory closest to the inputs. Ex. Bulk Reducing Industries because the process of production REDUCES the weight of inputs COPPER

Bulk-Gaining Industry Industries that gain volume or weight during production 1. Fabricated goods and metals (like TVs, motor vehicles, air conditioners, refrigerators, etc.) http://science.discovery.com/videos/how-its-made-mini-episodes-fire-hydrants.html (if we have time) 2. Beverage Production Water is expensive to ship but can be found in a lot of places so there are beverage plants dispersed throughout the US

Other types of plants Perishable Products Single-market manufacturers Located near the consumer Exs mostly include fresh foods Newspapers (kinda) Single-market manufacturers Make specialized parts to go into larger products Located near the consumer

How do inputs and products get from place to place? Short answer: Trucks Trains Ships Air Important points Often times modes get mixed (might use planes and trucks etc.) Costs rise every time you switch from one mode to the next Break of bulk point- places like seaports and airports where you can transfer from one mode to the next easily

Site Factors Land Labor Capital

Land factors Factories likely to be located in suburbs and rural areas Energy sources play a key role (are you next to hydroelectric power? Are you near coal fields?)

Labor factors Is your industry labor intensive? Do you pay a high percentage in wage? (note percentage does not equal high wages)

Triangle Shirtwaist Fire of 1911 (New York) 146 workers (majority women) died after being locked in so they couldn’t take breaks etc. Textile manufacturing (with the exception of wool) is located mostly in the south where wages are considered higher comparable to other jobs

What is the difference between skilled and unskilled labor?

Capital Industry will locate where it is able to get capital from banks

Why do industries face problems? Key Issue #4

Basic Economics on a Global Scale As demand for a good goes up, the price of that good goes… UP Is that good for business? Demand is going down because 1. People already own the goods 2. People’s wages aren’t enough to buy the goods

Overproduction In the past, few countries were making a particular good. Now everyone wants in on the action. This = overproduction Why do countries want to have their own steel mills for ex?

Government Policies Trading blocs (groups of countries working together to keep countries outside of their group from getting ahold of their markets) Transnational corporations (bases are primarily in MDCs with factories in LDCs to open markets) Tax breaks and loans to bring in business to underdeveloped areas

Topper the Trick Terrier Voice Recognition Requirements: (San Francisco) Voice Recognition Programming: (Taiwan) Plastic Eyes: (Shenzhen, China) Plastic Body: (Malaysia) Speaker for voice: (Dongguan, China) Microfiber for Coat: (Korea) Transistors: (Shenzhen, China) Motors for legs: (Shaoguan, China) Source: adapted from Eng Ching Kooi (2006) An In-depth Study of the Emergence of Mini-Maestro in Supply Chain Governance and their Influence to Logistics Industry, MA Thesis, State University of New York at Buffalo, http://dspace.mit.edu/bitstream/handle/1721.1/37123/85774364.pdf?sequence=1 IC chips: (Taiwan) Plastic legs: (Taiwan) Wiring: (Dongguan, China) Packaging: (Hong Kong)

Problems that uniquely face LDCs They are far from large markets They lack infrastructure New International Division of Labor (low skilled is clustered in LDCs where higher skilled is in MDCs)

Taboo Review 1 minute to get your partner to identify the words/phrases You CAN’T say the words, you must describe and define the concept so that your partner will guess the word.

Partner 1 Break of bulk point Bulk-gaining industry Bulk-reducing industry Cottage industry Fordist Industrial Revolution Labor-intensive industry Maquiladora

Partner 2 New international division of labor Post-Fordist Right-to-work state Site factors Situation factors Textile Trading bloc Footloose industry

What was the most important innovation of the industrial revolution? Steam engine, puddling (iron production), railroads, development and use of chemicals, food preservation techniques, others? Why was this innovation more important or significant than the others?