Changes in Industrial Production and Location Deindustrialization, the Sunbelt and Post-Fordism

The Post War Economy Fordism,1950s-1970s –Mass production/mass consumption –Little product differentiation –Big companies –Big unions –Steady growth Sometimes called the “Golden Age” of capitalism

Crisis of Fordism Starting in 1970s, the Fordist way of doing things is challenged –Competition from “new players” like Japan –New technology allows for production to be divided across space Old ways aren’t working Post-Fordism

The Second Industrial Divide Piore & Sabel, 1984 Flexible Specialization –Firm does not do everything –Concentrates on one aspect of production and does it well (and cheaply) –Product differentiation

Just-in-Time Production –Based on Japanese production –Goods supplied as needed; no inventory Vertical Disintegration –Rather than one big firm, production is switched to networks of firms –Region, not factory The Second Industrial Divide

David Harvey Time-space compression –Technology advances and pace of life make world a smaller place –What happens in one place affects what happens in another very quickly

Deindustrialization Bluestone & Harrison, 1982 Companies address problems by reducing workforce and closing factories Industrial Midwest is targeted –High union activity –Resistance to change

The Rustbelt

Sunbelt Hypothesis Manufacturers leave the rustbelt for the South and West Why? –Cheaper –Fewer unions –Blank slate

The Sunbelt

The Gunbelt Ann Markusen, 1991 Questioned Sunbelt hypotheses Real issue is government spending –Defense –“Gunbelt”

The Gunbelt

Regional Production Industrial Districts –Silicon Valley, California Electronics/Software –Baden-Wurtemburg, Germany Automobiles, machinery –Emilia-Romagna, Italy Clothing, ceramics DiGiovanna, 1996

Implications Regionalization Globalization –Global division of labor Challenge to the “place-bound” –Workers –Communities