Industries

The 19 th (1800’s) century brought change: Production of items became mechanized. Production of items became mechanized. Factories produced a growing number of goods. Factories produced a growing number of goods. Quantities of goods produced increased. Quantities of goods produced increased. People left the countryside to move closer to the factories in towns and cities (urbanization). People left the countryside to move closer to the factories in towns and cities (urbanization).

During the 20 th (1900’s) century… Farming and hand manufacture (goods made by hand) decreased drastically and was replaced by industry (factories and mass production!). Farming and hand manufacture (goods made by hand) decreased drastically and was replaced by industry (factories and mass production!).

An activity is ”industrial” when… 1. Transforms a natural resource into mass-produced good. 2. Costs money to manufacture these items. 3. Requires skilled workers.

What do industries produce? Almost everything around us is manufactured industrially, from airplanes to clothes, including medicines and computers. Almost everything around us is manufactured industrially, from airplanes to clothes, including medicines and computers.

Four Types of Industries 1. Heavy industry: It involves extracting metals or valuable minerals (ex: iron, aluminium, copper, tin and lead) from ore. It involves extracting metals or valuable minerals (ex: iron, aluminium, copper, tin and lead) from ore. (Ore a naturally occurring solid material – rock- from which a metal or valuable mineral can be profitably extracted.) It also includes chemical plants and oil refineries. It also includes chemical plants and oil refineries.

2. Processing industry: Transforms materials (metal, food, wood, etc.) into goods (motors, plastic, paper to be used by another industry). Transforms materials (metal, food, wood, etc.) into goods (motors, plastic, paper to be used by another industry).

3. Hi-tech industry: These include all products manufactured in pharmaceuticals, biotechnology, computers and electronics, aerospace, and telecommunications. These include all products manufactured in pharmaceuticals, biotechnology, computers and electronics, aerospace, and telecommunications.

4. Consumer goods industry: Manufactures products such as processed foods, clothing, house-hold appliances, cars, furniture and toys (for individual consumption). Manufactures products such as processed foods, clothing, house-hold appliances, cars, furniture and toys (for individual consumption).

What is a industrial park? It is an area of land developed as a site for factories and other industrial businesses. It is an area of land developed as a site for factories and other industrial businesses.

Characteristics of industrial parks: 1. Cluster (group) of industries in this area.

2. Road (18-wheelers) and a rail network (trains) for transporting raw materials and finished products to and from the factories/industrial businesses.

3. A port & an airport are nearby for exporting & importing products. (A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land.)

4. Hydrolines that reach the factories to provide energy.

5. Enough people to operate the factory.

Are industries in the North or the South? Some of the wealthy countries that are usually present at G7 or G20 meetings: United States United States Japan Japan Germany Germany United Kingdom United Kingdom France France Canada Canada Italy Italy

Wealth distribution

The 10 companies with the highest sales in

Which company ranked first place in the highest sales 2013? – Fortune 500 (source)

Industrialization around the world The European Union, North America and Japan are highly industrialised. The European Union, North America and Japan are highly industrialised.

Other countries, like China, India, South Korea, Singapore and Taiwan are considered “emerging industrial powers”. Other countries, like China, India, South Korea, Singapore and Taiwan are considered “emerging industrial powers”.

American Toys – made in China: Case Study Barbie dolls are made by Mattel. Barbie dolls are made by Mattel.

Mattel is a multinational company based in the United States (head office). Mattel is a multinational company based in the United States (head office). The dolls, however, are made in China (factories)! The dolls, however, are made in China (factories)!Why? 1. Reduce production costs 2. Increase profit

These multinationals relocate to other countries where the cost of production is lower than in developed countries like Canada or U.S.A. These multinationals relocate to other countries where the cost of production is lower than in developed countries like Canada or U.S.A.

Mattel Toy factory in the 1950’s Making Toys in

Why move United Stated-based companies to China? Chinese workers are paid less.

2. Chinese government offers better rates on buying and transporting raw materials and energy. 3. American companies pay less taxes and do not pay any duty fees.

Making dolls is an international effort! China offers manufacturing site, labour, and electricity. Japan provides nylon (doll's hair). Saudi Arabia offers oil. Taiwan transforms oil to ethylene to make plastic. U.S.A. and Japan manufacture most of the machinery and tools used to produce goods.

Is “offshoring” good for everyone? Relocating production to another country is called “offshoring/outsourcing”. Offshoring is closing down a manufacturing plant in America and reopening it in a foreign country. IN FAVOR Companies like Mattel (investors, CEO, etc.) benefit from offshoring because it increases their profits. Chinese government is in favor of it because it has created millions of jobs.

American employees are against offshoring because it means job losses in the United States. The Mattel factory in Kentucky closed down in Humanitarian organizations have noted that “offshoring” to developing countries can sometimes lead to bad working conditions.

This is outsourcing… Imagine you have a company that sells mobile phones, and you have a help center. People can call if they have a problem, and they will get answers to how to use their phone. Where you live, the minimum wage is $12 an hour. That means the people who answer the phones and give help have to be paid at least $12 an hour to answer the phones and give help to people who call. What if, instead of having those people in the same city as the people who call for help, you have them in a city in India? When people who call for help dial the HELP number, their call goes to India. The person who answers the call speaks good English, knows all the answers, and the customer is satisfied. As far as the customer is concerned, it could have been a local number. The thing is, you are only paying the person in India $4 an hour. Everyone is happy, but you are saving $8 an hour. Your business is running smoothly, but it is being handled somewhere else, somewhere cheaper.

The Great Lakes automotive industry: What of its future?

American car companies are concentrated in the Great Lakes region. Detroit is home to General motors, Ford and Chrysler.

Canada's automotive industry Most factories are in Ontario between Windsor and Oshawa.

En route to… relocation Japan is a fierce competitor in the automotive industry. Since the 1960s, the rise of Japanese car companies (Toyota, Nissan and Honda) has affected the sales of American made cars. Japanese cars were more compact (smaller) and consumed less gas.

GM, Ford and Chrysler made the decision to offshore (relocate its companies to Mexico in order to remain competitive with Japan by lower their production costs). Relocating to Mexico meant closing many factories in the United States and Canada.

General Motors, Ste-Thérèse (the end) A monthly union meeting of former GM employees, TCA local 1163, in their spaces in the town of Boisbriand — despite the plant’s closing, bringing thirty years’ operation and Quebec’s automotive industry to an end. The parking lot storing the last Impalas, the only view one has of the production as access to the manufacturing premises was denied. We’re on the outside, and that’s where we’ll stay, the factory having been torn down Working, Mercer Union, Toronto.Mercer Union

The case of Detroit It was once the automotive capital of the United States. Relocating factories to Mexico really affected the Great Lakes region. The region still manufactures cars however, it has reorganized production by installing technology that reduces the number of employees (labor) and making cars that sell really well in America.

BBC - Das Auto: The Germans, Their Cars and Us (2013)

Fault LinesFault Lines: Collapsing Auto Industry in Detroit Fault Lines