1. © 2011 Pearson Education, Inc. M4/9/12 Changes in Location Factors for Industry Ch. 11.4 - pp. 361-371

2. © 2011 Pearson Education, Inc. I. New Industrial Regions Changing Industrial Distribution within MDCs Shift is largely driven by wages –US – from NE & MW to S & W –Europe - from Western & Northern to Eastern & Southern A. Interregional shift within the United States »NE lost 6M industrial jobs, 1950-2009 »S & W gained 2M ind. jobs –growth due in part to gov’t policies (TVA) & technology (AC) –1. Right-to-work laws »factories must maintain “open shops” »workers are NOT required to join unions »most located in southern states (US) »fewer union workers in southern states »often lower wages, but lower cost of living »great industrial growth in Gulf Coast states - oil, natural gas

3. © 2011 Pearson Education, Inc. I. New Industrial Regions –A. Interregional shift within the United States (cont.) 2. Textile Production –shift from NE to S & W »once located near to garment district (NYC) »relied on immigrant labor »industrial problems - Triangle Shirt Waist Factory Fire (1911) –began to shift mid-20th C. –shifted to small towns in S –lower wages, fewer union workers –transportation helped by growth of interstates

4. © 2011 Pearson Education, Inc. I. New Industrial Regions –B. Interregional shifts in Europe mirrors shift w/in U.S. –W Europe to S & E Europe encouraged by European gov’t EU gives assistance to two regions –1. Convergence Regions »lower incomes than W Europe »Spain - textiles & cars »Poland, Czech & Hungary have prospered »prefer to be called “Central Europe” »proximity to labor & markets –2. Competitive and Employment Regions »W Europe has lost many manufacturing jobs »has received EU financial help

5. © 2011 Pearson Education, Inc. Changing U.S. Manufacturing Figure 11-21

6. © 2011 Pearson Education, Inc. Manufacturers of Men’s and Women’s Socks and Hosiery Figure 11-22

7. © 2011 Pearson Education, Inc. European Union Structural Funds

8. I. New Industrial Regions C. International shifts in industry shift from 1970-2010, Europe & US about 25% each –had been 50% Europe & 33% US East Asia –China major producer which continues to grow –Japan & South Korea South Asia –mostly India - textiles & cars Latin America –proximity to U.S. »Mexico helped, esp. b/c of NAFTA –rise of maquiladora plants near U.S. border »cheap labor, lower costs –Brazil also increasing, »located in SE near Sao Paulo & Rio de Janeiro

9. © 2011 Pearson Education, Inc. I. New Industrial Regions C. International shifts in industry (cont.) –1. Changing distributions steel & clothing shift »steel 80% made in MDCs in 1980 only 40% in 2008 –apparel shifted from U.S. made to foreign made »more dramatic in Europe due to higher wages

10. © 2011 Pearson Education, Inc. I. New Industrial Regions C. International shifts in industry (cont.) –2. Outsourcing new int’l division of labor –manual tasks performed in LDCs for lower wages –more complex tasks still done in MDCs outsourcing - jobs sent to local, independent suppliers opposite of vertical integration (controlling all steps of industrial process) horizontal integration - controlling competitors

11. © 2011 Pearson Education, Inc. World Steel Production Figure 11-24

12. © 2011 Pearson Education, Inc. Global Production

13. © 2011 Pearson Education, Inc. Apparel Production and Jobs in the United States Figure 11-26

14. © 2011 Pearson Education, Inc. II. Traditional Industrial Regions Why do some TNCs (MNC) stay in MDCs? A. Proximity to Skilled Labor Fordist, or mass production –any workers could learn skills Post-Fordist, or lean production (Toyota) –more specific skills needed »computer manufacturing, “high-end” clothing –focus on team building, problem solving and leveling

15. © 2011 Pearson Education, Inc. II. Traditional Industrial Regions B. Just-in-time delivery needed quickly, often several deliveries a day –cars & computers –must be near customer save on inventory costs but delays are costly –2 major delays: labor unrest (strikes) & “Acts of God” (usually weather)

16. © 2011 Pearson Education, Inc. Electronic Computing Manufacturing Figure 11-28

17. © 2011 Pearson Education, Inc. Women’s and Girls’ Cut and Sew Apparel Manufacturing Figure 11-29

18. © 2011 Pearson Education, Inc. The End. Up next: Services