1. Geographical Industrial Factors

2. What are the different factors when deciding where to put a factory or a store?

3. Site & Situation
Both contribute to the industrial development of some countries while keeping others reliant on agricultural sectors
Some locations may have great site & situation, others may have good site, but bad situation

4. Geographic Factors for Industry
Site
Internal Characteristics of a place based on its physical features
New Orleans has poor site because it’s below sea level
Situation
Relationship that a location has with locations around it (Relative)
Pittsburgh & Detroit have good situations-resources

5. Pittsburgh- Why Steel? IRON ORE COAL Rivers
Ideal for production of steel: Iron Ore from Great Lakes regions (Minnesota, Wisconsin, Michigan), Coal in Western PA to fuel blast furnaces, Two major rivers provide access to ship steel all over the world.
Rivers

6. Detroit: Why cars?
What about Detroit’s Situation gave it an advantage for the auto industry?

7. Detroit & Pittsburgh established Basic Industries
Basic Industry- focal point of the economy of a city
Pittsburgh's basic industry?
Detroit’s?
Silicon Valley, CA?
Minneapolis?
Steel Automobiles Computer Chips Milling

8. Non-basic industry
A secondary business that sprouts up after the city has been established
Construction needed to build homes for the workers in the city’s basic industry

9. Multiplier Effect
All three businesses together form the multiplier effect:
The expansion of the economic base of a city as a result of the basic & non-basic industries located there
Steel industry led to barge industry

10. Industrial Factors Industrial Costs Transportation Systems: Trucks
Trains
Airplanes
Pipelines
Ships

11. Industrial Costs Fixed Costs
Do not fluctuate based on the quantity ordered
Variable Costs
Fluctuate based on the volume of the order

12. Transportation Systems
The greater the distance traveled & the weight of the products, the greater cost to transport them
Time-Space Compression- effort to increase the efficiency of time in the delivery process by diminishing distance obstacles
Internet has sped up how fast industries can deliver products

13. 5 Primary Forms of Industrial Transportation
Trucks
Highly mobile, delays from weather, traffic jams, use of fossil fuels, maintenance costs
Trains
Can haul A LOT very long distances, more fuel efficient, lack of route flexibility, only land travel
Airplanes
Super Fast, flexible routes, very expensive, low fuel efficiency, weather delays
Pipelines
Efficient way to move gas or liquid products, but only these things
Ships
Most energy efficient, slowest method, require access to waterways, weather dependent

14. Break-of-Bulk Point
Transfer points from one form of transportation to another….
Why do you need to transfer?
Train to Truck or Ship to Train

15. Location of Industry
Agglomeration- the centralization of features of an industry for the mutual benefit of the industry as a whole
Think of your mall…You go to the mall to buy jeans, while walking to get your jeans you see a shirt you want to go with your new jeans, while walking out you buy new shoes. Your intention was to only buy jeans, but you leave with a whole outfit. The whole mall benefited from your intention to buy jeans. The stores compete with one another but they also help each other by bringing in more people.

16. Back to Detroit…..
Agglomeration worked for Detroit- Ford, General Motors, & Chrysler all benefited from being near each other
Secondary industries, attracted to industrial hub, provided products & services to all three
Unions provided quality labor, tires made in nearby Ohio, etc.
If everything is so close, what happens to transportation costs? To production costs?

17. If you were to going to build a factory, in general where could you put it?

18. Weber’s Least Cost Theory
Alfred Weber: Economic Geographer who came up with a theory to describe the location of certain industries
Companies need to take into account two things:
1. Source of Raw Materials
2. Location of Market for product
The WEIGHT of the raw materials & the WEIGHT of the finished product will determine location of PRODUCTION

19. Least-Cost Theory
Uses Locational Triangle to find least transportation cost location for factory
Optimum Point of Production- Total cost of assembling material & distributing the product is at a minimum
Each corner of triangle exerts its pull
Pull based on transportation cost

21. Bulk (Weight) Gaining Industry
Rubber
Plastic
An industry where the finished product weighs more than the raw materials
The industrial point of production will need to be closer to the market to minimize transportation cost associated with a bulky item
Production of Automobiles
Automobile Factory
MARKET

22. Bulk Reducing Industry
Potatoes
Salt
An industry where the raw materials weigh more than the finished product
The industrial point will need to be located closer to the raw materials
Production of Potato Chips
Potato Chip Plant
MARKET

23. Brick Bunny
Bricks
Feathers
When a production point is skewed toward the side of the triangle where the raw material is the heaviest
Bulk Reducing Resource
Bricks vs. Feathers
Brithers Production
MARKET

24. Close to Market Close to Resources Market Orientation-
Add weight to finished product or
finished product is difficult to transport
Close to Market
Bulky- Automobile Assembly, Furniture
Perishable- Baked Goods
Weight gain- Beer, Soda
Close to
Resources
Bulky- Lumber, pulp mills, plywood
Perishable- Canning and Freezing
Weight loss- Copper, Rice and wheat
Raw Material Orientation-
Difficult or expensive resources to transport

25. Three Primary Factors Weber Included…
1. Raw Materials
Set location
2. Labor
Most expensive
3. Transportation
Easiest to control through the location of the industry

26. Weber’s Assumptions
1. Industrial Production Point must be located somewhere within the triangle
2. All parts of the triangle must be uniform in topography
3. Areas in triangle have same political, cultural, & economic values
4. Assumed availability of transportation within all parts of triangle
5. Minimum amount of raw material is available in triangle to make product
6. Labor is infinitely available to any point in triangle
7. As industrialization becomes more global, Weber’s theory begins to change, he assumed industrialization would stay within the same country

27. Try out Weber’s Theory
1. Mark & label the resource locations on your google map
2. Mark & label the location of your market
3. Draw your triangle from the three points
4. “Guestimate” the weight: Do you have a bulk gaining or reducing industry?
5. Where should the production point go?