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Industry and Services

Chapter 12

Where did the IndustrialRevolution begin, and

How did it Diffuse?

Key Question:

Industrial Revolution:a series of inventions that brought new uses toknown energy sources, new machines to improveefficiencies and enable other new inventions.

eg. steam engineiron smeltingwater pump

Beginning of Industrial Revolution

• When and where did the industrial revolutionbegin?– In Great Britain in the mid to late 1700s

• Why Great Britain?– Flow of capital– Second agricultural revolution– Mercantilism and cottage industries– Resources: coal, iron ore, and water power

Flow of Capital into Europe, 1775Needed flow of capital in order to fuel the industrial revolution.

TextilesProduction:Liverpool andManchester

Iron Production:Birmingham

Coal Mining:Newcastle

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Ironbridge, EnglandWorld’s first bridge made entirely of cast iron,constructed in late 1700s.

Diffusion to Mainland EuropeIn early 1800s, innovations diffused into mainlandEurope.

Location criteria: proximity to coal fieldsconnection via water to a portflow of capital

Later DiffusionIn late 1800s, innovations diffused to some regionswithout coal.

Location criteria: access to railroadflow of capital

Diffusion ofIndustrialRevolution

The Paris Basin is the Industrial base of France. Rouen(pictured here) is at the head of navigation point on the SeineRiver.

Examine the map of diffusion of the IndustrialRevolution into Europe and determine whatother characteristics (aside from presence ofcoal) were necessary for industrialization totake hold in these regions.

How do Location Theoriesexplain Industrial Location?

Key Question:

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Location Theory

• Location Theory – predicting where business willor should be located.

Considers:- Variable costs- Friction of distance

Location ModelsWeber’s ModelManufacturing plantswill locate where costsare the least (least costtheory)

Theory:

Least Cost Theory

Costs: Transportation,Labor, Agglomeration

Hotelling’s ModelLocation of an industrycannot be understoodwithout reference toother industries of thesame kind.

Theory:

Locationalinterdependence

Losch’s ModelManufacturing plantschoose locations wherethey can maximizeprofit.

Theory:

Zone of Profitability

Losch’s ModelZone of Profitability

Major Industrial Regions of theWorld before 1950

Westernand

CentralEurope

MajorDeposits ofFossil Fuels

in NorthAmerica

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Major ManufacturingRegions of North America

Major Manufacturing Regions of Russia MajorManufacturing

Regions of EastAsia

Think of an industrial area where you live,either an industrial park or a majorconglomeration of industries. Drive through thearea or look online or in the phone book to seewhat industries are located there. Consider themodels of industrial location described in thissection of the chapter and determine whetherany of the models apply to this place.

How has IndustrialProduction Changed?

Key Question:

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Post-FordistFordist – dominant mode of mass production

during the twentieth century, production ofconsumer goods at a single site.

Post-Fordist – current mode of production with amore flexible set of production practices in whichgoods are not mass produced. Production isaccelerated and dispersed around the globe bymultinational companies that shift production,outsourcing it around the world.

Time-SpaceCompression

Through improvementsin transportation andcommunicationstechnologies, manyplaces in the world aremore connected thanever before.

Time-Space Compression

• Just-in-time deliveryrather than keeping a large inventory ofcomponents or products, companies keep justwhat they need for short-term production andnew parts are shipped quickly when needed.

• Global division of laborcorporations can draw from labor around theglobe for different components of production.

Production of Televisions

• Three key elements in television production:– Research and design– Manufacturing components– Assembly

• Production of televisions has shifted across theworld over time.

New Influences on theGeography of Manufacturing

• Transportation on industrial location

• Regional and global trade agreements

• Energy in industrial location

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Think about a cutting-edge, high-technologyproduct that is still quite expensive to purchaseand not yet broadly used (perhaps somethingyou have read about but not even seen). Usingthe Internet, determine where this product ismanufactured and assess why the product ismanufactured there. Hypothesize whichcountries production will shift to and how long itwill take for production costs (and the price ofthe product) to decrease substantially.

Where are the MajorIndustrial Belts in the

World Today and Why?

Key Question:

Deindustrialization –a process by which companies move industrial jobs toother regions with cheaper labor, leaving the newlydeindustrialized region to switch to a service economyand work through a period of high unemployment.

Abandoned streetin Liverpool,England, wherethe population hasdecreased by one-third sincedeindustrialization

Newly IndustrializedChina – major industrial growth after 1950

Industrialization in the 1960s was state-planned:focus on: Northeast district

Shanghai and Chang district

Today, industrialization is spurred by companiesthat move production (not the whole company)to take advantage of Chinese labor and specialeconomic zones (SEZs).

As China’s economycontinues to grow, oldneighborhoods (right)are destroyed tomake room for newbuildings (below).

Beijing, China

How does a place change whendeindustrialization occurs? Consider a placethat has experienced deindustrialization, andresearch recent news articles on the Internet tofind out how the economy of the place haschanged since the loss of industry. What hashappened to the place and its economy?

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What is the Service Economy,and Where are

Services Concentrated?

Key Question:Service Economy

Service Industry –Economic activity associated with the provision of

services – such as transportation, banking,retailing, education, and routine office-basedjobs.

Geographical Dimensionsof the Service Economy

New Influences on Location:

- Information technologies- Less tied to energy sources- Market accessibility is more relevant for some

and less relevant for others because oftelecommunications

- Presence of Multinational Corporations

Wal-MartRequires producers of goods to locate offices in theBentonville, Arkansas (Wal-Mart’s headquarters) area inorder to negotiate deals with Wal-Mart.

Proctor & Gambleput their office innearbyFayetteville,Arkansas.

How does thepresence of thesecompanies in theregion change theregion’s economyand its culturallandscape?

NikeHeadquartered in Beaverton, Oregon, Nike has neverproduced a shoe in Oregon. Beginning in the 1960s,Nike contracted with an Asian firm to produce its shoes.

Skopje,Macedonia

The swoosh isubiquitous, butwhere is the shoeproduced?

Nike has a globalnetwork ofinternationalmanufacturingand sales.

Modern Production

Outsourcing –

moving individual steps inthe production process (of agood or a service) to asupplier, who focuses theirproduction and offers a costsavings.

Offshore –

Outsourced work that islocated outside of thecountry.

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High-Technology Corridors

• An area designated by local or state governmentto benefit from lower taxes and high-technologyinfrastructure with the goal of providing high-technology jobs to the local population.

eg. Silicon Valley, California

• Technopole – an area planned for hightechnology where agglomeration built on asynergy among technological companies occurs.eg. Route 128 corridor in Boston

Plano-Richardson, TexasTelecom Corridor is just north of Dallas

What majors are most popular at your collegeor university? Consider what service/high-technology corridors may already exist nearyour college or university. Propose (where,why, how) a new service/high-technologycorridor for your region based on what yourcollege/university has to offer the industry.