Industrial Landscapes

Why Are Location Factors Changing? Renewed attraction of traditional industrial regions Proximity to skilled labor Fordist, or mass production – labor intensive industries Post-Fordist, or lean production – High Tech Industry

Industrial Areas in North America

FORDIST CONSIDERATIONS LABOR IS PRIMARY CONSIDERATION Manufacturers seek lower wages

Why Are Location Factors Changing? Attraction of new industrial regions Changing industrial distribution within MDCs Interregional shift within the United States Right-to-work laws (not required to join unions) Textile production Interregional shifts in Europe Convergence shifts Competitive and employment regions

Why Are Situation Factors Important? Proximity to inputs Bulk-reducing industries Examples: Copper Steel Potato Chips Pencils

Why Are Situation Factors Important? Proximity to markets Bulk-gaining industries Examples: Fabricated metals Beverage production Single-market manufacturers Perishable products

Why Are Situation Factors Important? Ship, rail, truck, or air? The farther something is transported, the lower the cost per km/mile Cost decreases at different rates for each of the four modes Truck = most often for short-distance travel Train = used to ship longer distances (1 day +) Ship = slow, but very low cost per km/mile Air = most expensive, but very fast

Weber’s Model of Industrial Location – Locational Triangle Main Factors include: DISTANCE to RAW MATERIALS to FACTORY DISTANCE to FACTORY FROM MARKET PRIMARY CONSIDERATION = TRANSPORATION COSTS

Why Are Site Factors Important? Land ~Rural sites ~Environmental factors Capital

POST-FORDIST CONSIDERATIONS aka High Tech Industry Tends to locate in agglomerations of similar firms Access to similar forms is important – more innovation SPECIALIZED LABOR MARKET Need for specialized services & inputs Transportation not a consideration TRANSACTION COSTS ARE

This all created a new “RUST-BELT, SUN-BELT” geography in the USA during the 1970’s and early 1980’s. RUST BELT - old manufacturing belt SUNBELT – New high tech and service economy agglomerations: CA, AZ, CO, FL