1. C11K2 Why Are Situation Factors Important?

2. Objectives Proximity to Inputs Proximity to Markets Ship, Rail, Truck, or Air

3. Proximity to Inputs Manufacturers/ situated in a location the minimizes cost of transporting “inputs” to factory & finished goods to consumers. Bulk-Reducing industry – “inputs” weigh more than the final product

4. Copper: Bulk Reducing Industry 1) Mining: copper ore.7% 2) Concentration: mills crush and grind 25% 3) Smelting: remove more impurities & produce copper matte 60%, 97%, 99% 4) Refining: further refining 99.99%

5. Steel: Changing Importance of Inputs Principal inputs are iron ore and coal. Inputs changed location, so did the mills. mid-19th century: Pittsburgh Late 19th century: cities around Ohio/Lake Erie Early 20 th century: Chicago/Lake Michigan Mid 20 th century: West & East coast cities Late 20 th century: most mills close. Open minimills

6. - Input changes to scrap - Limited to one step in the process

7. Proximity to Markets Bulk Gaining Industries – makes something that gains volume or weight during production. Minimize transport cost by locating near where product sold. Fabricated metals – machines (i.e. teles, refrigerators, cars) Auto Alley

8. Beverage Production

9. Beer Production

10. Breweries

11. Single Market Manufacturers Specialize in one or two parts for one or two customers. i.e. cars need seats, engines, bumpers, steering wheels, etc. Large bulk items close to final assembly. Smaller/cheap parts can be shipped from further away Textiles: Zippers, buttons, straps,

12. Perishable Products (foods/news)

13. Modes of Transport Which of the four alternatives is cheapest/ changes with the distance that goods are being sent? Trucks: short-distance, easy to load/unload Trains: distances longer than a day, longer to load/unload but no rest needed Ships: cheapest, long distance, when land based is not an option. Air: most expensive, expensive, high value products