Download presentation
Presentation is loading. Please wait.
1
Manufacturing & Industrial Location Theory – Chapter 10 Material Transformation Urban→suburban Employment source Linkages Key decision Investment in place Fixity→Industrial inertia Clustering of industrial activity
2
Corporate Behaviour Recognition of future production capacity needs Options to meet future production capacity needs Adjustment in-situ Acquisition New plant expansion How and who decides? (Org. structure) Site selection
3
Markets: Demand side factors in industrial location Market orientation Final demand: Consumers Intermediate demand: Industries Transportation costs Higher for finished products Lower for raw materials − (But gross raw materials are weight-losing)
4
Market orientation Beverages Perishables Newspapers (printing)
5
Market orientation Women’s apparel (garments) High fashion Mass production Agglomeration economies Components (e.g. auto parts) Minimum cost location is not always maximum profit location!
6
Production costs Factor substitution Labour vs. capital vs. land e.g. Cattle beef chain Ranching Feed lots Meat packing e.g. Plastic Moulds e.g. Hair cuts
7
Labour costs Labour intensive, unskilled Industrial processes Textiles Clothing Footwear Low labour cost locations Urban → rural (or down urban hierarchy) North → south (U.S.) Core → periphery e.g. Novatel - JRC
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.