1. Location Location Decision Transportation Additional Factors
Industry & Location
Location
Location Decision
Transportation
Additional Factors

2. Industrial Revolution
Revolution in power & transportation
Steam engine
Location no longer contingent on running water
Cheaper power = production increased
Goods, ideas, humans were transported
Stable governments/economies
Modern industry increased, inequality at global, national, and regional scales increased with it

3. Industrial Revolution Hearth
Fig. 11-3: The Industrial Revolution originated in areas of northern England and southern Scotland. Factories often clustered near coalfields.

4. Rapid diffusion of industrialization moved eastward
some regions developed because of vast quantities of raw materials (Saxony, Ruhr, Silesia)
others developed as centers of urban markets (Paris and London)

5. Economic Geographic Models Assume:
1- People will try to maximize their advantages over competitors
2- They will want to make as much profit as possible
3- They will take into account variable costs – energy, transportation, labor
Primary industries: location is determining factor
Secondary industries: less dependent on resource location- raw materials can be transported if necessary
Friction of distance: the increase in time and cost that usually comes w/ increasing distance
Distance decay: the impact of a function or activity will decline as one moves away from its point of origin

7. Manufacturing Centers in Eastern Europe and Russia
Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European Russia, and the Ukraine. Other centers were developed east of the Urals.

8. Transportation and Location
Bulk Reducing Industries: Economic activity in which the final product weighs LESS than its inputs or has less volume than its inputs.
Copper, steel, other metals
Cotton/linen
Soy/corn/vegetable oil
Bulk Gaining Industries: Economic activity in which the final product weighs MORE than its inputs or has greater volume.
Beer/soft drink bottling
Fabricated goods (TVS, refrigerators, Washing machines)
Cars

10. Weber’s Least-Cost Theory (1909)
Least Cost Theory- location of industry took into consideration
Transportation: site chosen has lowest possible cost of moving raw materials to factory or finished products to market
Labor: higher wages = lower profit margin- How much education/training is needed? Further away with cheap labor > added transportation
Agglomeration: substantial # of enterprises cluster in one area- they benefit each other through shared talents, services, facilities (too much can lead to high rents & wages, circulation problems)

11. Manufacturing Centers in East Asia
Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast.

13. Copper Mine in Arizona
The Lavender Pit Copper Mine in Bisbee, Arizona operated between 1951 and 1974.

14. Site and Situation Factors
Result from the unique characteristics of a location
Land, labor, and capital are the three traditional production factors
Is it LABOR INTENSIVE?
Climate, topography, recreational activities, cost of living, and suitability for construction
New businesses need investors
Situation
A firm seeks a location that minimizes the cost of transporting inputs to the factory and to the consumers
Proximity to inputs (copper and steel)
Proximity to markets (pop)
Perishable products

15. Labor Cost per Hour MDCs and LDCs
Fig : Hourly wages can be under $1 in many LDCs compared to well over $10 in many MDCs.

16. U.S. Clothing Production 1994 - 2005
Fig : The percent of U.S. made clothing has declined sharply since the 1990s while imports have increased.

17. Hotelling’s Beach
Locational interdependence: industries can’t be understood without reference to the location of other like industries
Only one variable: Maximize sales
Vendors will agglomerate to enlarge their markets
Eventually people sought a ZONE of profitability

18. Distance Decay-
decreases profits
Distance Decay- decreases profits
August Lösch
Profit-maximization: firms will identify a zone of profitability (not just a point)
Other businesses can come in and change the configuration of that zone – negative of agglomeration
Agglomeration can give the entire area a competitive advantage – positive b/c image will lead people to come from distant places to acquire products being sold

19. Chevrolet Assembly Plants, 1955
Fig a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.

20. Chevrolet Assembly Plants, 2007
Fig b: In 2007, GM was producing a wider variety of vehicles, and production of various models was spread through the interior of the country.

21. Motor Vehicle Parts Plants
Fig : U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-owned plants tend to be located further south, where labor unions are weaker.

23. Deindustrialization of the developed world
Labor and land costs increase- pushing manufacturing and industry to other parts of the world
Singapore, Hong Kong, Taiwan, India, Brazil, Mexico, Guangdong Province