The Industrial Territory (Unit 3 – Issues and Territories)

Industrial territories … 1.Are focused around a concentration of factories. 2.Help to develop the economy ($) of a region. 3.Affect the environment of a region.

Basics The goods we consume come from FACTORIES that transform RAW MATERIALS (wood, iron, metals) into FINISHED GOODS. We call INDUSTRY the activity related to the production of goods and energy.

The Foxconn factory in Shenzen, China, makes Apple electronics like ipods, ipads, etc…

Industrialization INDUSTRIALIZATION is the process of expanding and intensifying industrial activities in a region. – Translation: Creating more factories or expanding the industries in a country or region.

3 sectors (areas) of Economic Activity 1.Primary Sector: Resource development (getting raw materials) Ex: Fishing, Mining, Agriculture… 2.Secondary Sector: Converting raw materials into products. Ex: Automobile Industry, Textile Industry, etc. 3.Tertiary Sector: Activities related to services (transport, health, etc)

The Industrial Revolution Began in Europe Late 18 th Century

New technology + New energy sources = factories, machines to build and produce! – New tech Steam engine Locomotives Looms – New energy sources Coal power Electricity Oil

Big population + Urbanization = Lots of Workers Workers + Factories = PRODUCTION + GROWTH

INDUSTRIES: THE GOAL Industrial companies are looking for PROFITS! Profits = Money!

How do you make profits? Revenue from Sales – Production Costs = Profits The money made by selling the products The cost of making the products Research Raw Materials Machinery Labour Energy Marketing Transport

Example: An IPad – 549$ PRODUCTION COSTS PAY FOR: Cost of researching / developing the iPad The materials in it (plastic, wiring, etc.) Factory machines to make parts Energy to run machines Workers who assemble it Marketing / Ads to Transporting it to Canada ANY MONEY LEFT OVER IS PROFIT Actual cost of materials = about 260$

So… how can you lower the production costs? Research? Raw Materials? Machinery? Labour? Energy? Marketing? Transport? Where Can You Save Money???

Finding a Good Location for your Industry Finding a good site to build your factory can save you money / PRODUCTION COSTS This will increase your PROFIT.

Factors in Choosing a Location Companies may choose a location that is… 1.Close to an energy source (save $ on energy) 2.Close to Raw Materials (save $ on transportation) 3.Close to transportation (ex: near river, railway) 4.Close to markets (ex: food companies near cities) 5.Close to Specialized Labour ( easier to hire workers )

The Effects of Industrialization How do industries affect their territories?

Industries promote DEVELOPMENT As cities become industrialized, they become urbanized. Some improvements: – Improve economy of a region – New neighborhoods built – Roads and railways improved – Schools and medical facilities created – Cities grow (population rises) The positive developments in workers neighborhoods came slowly in the Industrial Revolution!

Industrialization and POLLUTION Factories can pollute their environments. – Pollution in the air, ground, and in water – In past 100 years, 30,000 toxic chemicals dumped into the Great Lakes.

– Pollution contaminates the food chain. – Leads to health problems for people near industries.

A new development: Industrial Parks Industrial parks are spaces designed to concentrate industries together in one place. – Allows companies to easily do business together. – Built near resources (power, rail, water…) to offer good LOCATION.

These parks are built in suburbs, outside of cities. – Industries no longer near city centers.