The document discusses the evolution and diffusion of industry from pre-industrial times through the industrial revolution. It examines factors influencing the location of industries such as proximity to raw materials, markets, and transportation routes. Specific industries discussed include steel, automobiles, and electronics to illustrate how their locations have changed over time based on changing transportation costs and other factors.

1. Industry and Transportation Lecture 10

2. Primary secondary tertiary quaternary Pre-Industry Early industry Late Industry Post Industry Types of Economic Activities

4. Industrial Revolution

6. Industrial Revolution Population and Urbanization Technology and Pollution

7. Was-Balt: Urbanization Change Fig. 5-3. Baltimore simulated forest land cover showing 200 years of urban growth in yellow.

8. Two hundred years of urban growth for the Baltimore-Washington region. Red pixels denote urban land use as defined by both the USGS and the Bureau of the Census. Was-Balt: Urbanization Change

11. Transportation Evolution

12. Transportation

13. Continental Airlines, Inc

15. Continental Airlines, Inc

17. Population Density - 1990

19. Transportation

26. Weber’s Location Theory

32. Diffusion of the Industrial Revolution Fig. 11-1: The Industrial Revolution originated in areas of northern England. Factories often clustered near coalfields. The need for large quantities of bulky, heavy coal, the iron Industry’s geographic pattern change from dispersed to clustered.

33. Diffusion of Railways Fig. 11-2: The year by which the first railway opened shows the diffusion of railways and the Industrial Revolution from Britain. Transportation played a crucial role In the diffusion of the I.R. New transportation systems enabled factories to attract large numbers of workers, bring in bulky material like iron ore and coal and ship finished goods to consumers. It took more than fifty years between the first railroad in England and the first ones in Eastern Europe. (Political instabilities such as French Revolution (1789-1799) and Napoleonic Wars (1796-1815

34. Manufacturing Regions Fig. 11-3: The world’s major manufacturing regions are found in North America, Europe, and East Asia. Other manufacturing centers are also found elsewhere.

35. Industrial Regions of North America Manufacturing was more expensive in the US than in Britain because labor was scares, and shipping to European markets was expensive. This manufacturing belt was achieved its dominance through a combination of historical (tied to European Markets) and environmental factors (Near raw materials, transportation routes such as canals, railways, and highways.

36. ePodunk Inc

37. Industrial Regions of North America New England (began with Cotton textiles and cheap immigrant labor); Middle Atlantic (large markets, main ports, financial centers); Mohawk Valley (steel and food processing and near abundant electricity); Western Great Lakes (market center and transportation hub main suppliers of finish products; and St. Lawerence Valley-Ontario Peninsula (centrality to Canadian markets and abundant electricity).

38. The Maryland Port Administration

39. Manufacturing Value Change The value and growth of manufacturing in major metropolitan areas in the U.S. between 1972 and 1997. New Manufacturing Centers emerging in the South and West. While the traditional Manufacturing belt is declining.

41. Manufacturing Centers in Western Europe Rhine- Ruhr Valley- Location of rivers, industry is dispersed rather than concentrated in few cities, iron and steel have concentrated in the valley. Mid-Rhine- consumer market (Old East and West Germany), financial center (Frankfurt), High value goods (Mercedes-Benz), France side largest iron-ore fields. United Kingdom- No longer a world leader in steel, textiles, and other industries. Has attracted new high-tech jobs Northern Italy- Larger population center, cheap labor, and cheap electricity .

42. Manufacturing Centers in Eastern Europe and Russia Major manufacturing centers are clustered in European Russia and the Ukraine. These centers were encouraged by the communist gov’t.

44. Manufacturing Centers in East Asia Fig. 11-8: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast. Few raw material (China) but skilled labor, technology development, and large markets.

47. Copper Industry in North America Is a good example of Locating near the source of heavy bulky inputs to minimize transportation cost. The bulk and weight of this Ore are great. Copper mining, concentration, smelting, and refining are examples of bulk-reducing industries. 2/3 are located near the copper mines in Arizona .

48. Integrated Steel Mills Steelmaking is another bulk-reducing that has traditionally has been located to minimize the cost of transportation inputs. The U.S. steel industry also demonstrates how locations change when the source and cost of raw materials change. In the 1850 the steel industry centered around Pittsburgh and Cleveland. New steel mills emerged in the 1900’s when steelmaking required more iron ore in proportion to coal. The growth of steel mini-mills also demonstrate the increasing importance of access to markets rather than to inputs.

49. Steel Minimills Fig. 11-11: Minimills produce steel from scrap metal, and they are distributed around the country near local markets. These are the two largest minimill operators.

50. Location of Beer Breweries Fig. 11-12: Beer brewing is a bulk-gaining industry that needs to be located near consumers. Breweries of the two largest brewers are located near major population centers. Bulk-gaining Industries- Makes something that gains volume or weight during productions. Most major bottlers of beer are located near large population centers.

52. United States Economy General Welfare 2006 2007 2008 2009 U.S. GDP growth (annual percent change) 2.7 2.1 0.4 -2.4 U.S. federal debt as a percentage of GDP 36.5 36.2 40.2 53.0 National surplus/deficit in billions of current dollars -248.2 -160.7 -458.6 -1413.6 National unemployment rate 4.6 4.6 5.8 9.3 Annual personal saving rate 2.4 1.7 2.7 4.3 Annual average interest rate on 30-year fixed mortgage 6.41 6.34 6.03 5.04 Consumer sentiment index (annual average) 87.3 85.6 63.8 66.3 Average global happiness (scale of 0 to 10) 5.41 5.51 5.41 5.45 World GDP growth (annual percent change) 3.9 3.8 1.8 -2.1 Brazil GDP growth 4.0 5.7 5.1 -0.7 China GDP growth 11.6 13.0 9.0 8.5 India GDP growth 9.8 9.4 7.3 5.4 South Africa GDP growth 5.3 5.1 3.1 -2.2 World trade growth (annual percent change) 9.1 7.3 2.8 -12.3 Workers' remittances (world inflows, annual percent change) 15.3 21.3 15.3 -5.3

57. Globalization Model GLOBALIZATION More Develop Less Develop X factor: Nike, Wal-Mart, Toyota, etc. Raw Material and Cheap Labor Tech, Capital, and high order Goods Country B Ex. Guatemala Natural Resources Country A Ex. United States Market, Capital, Tech Country C Ex. Vietnam Cheap Labor

58. Country A: United States: Markets, Capital Tech Country B: Colombia: Natural Resources Country C: Vietnam: Cheap Labor

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

61. Chevrolet Assembly Plants, 2003 In 2003, GM was producing a wider variety of vehicles, and production of various models was spread through the middle of the country.

62. Site Selection for Saturn Fig. 11-1.1: GM considered a variety of economic and geographic factors when it searched for a site for producing the new Saturn in 1985. The plant was eventually located in Spring Hill, TN.

63. Motor Vehicle Parts Plants Fig. 11-14: 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.

64. Car Industry

65. Car Industry

66. Car Industry http://www.nytimes.com/2008/11/17/business/economy/17impact.html

69. Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html

70. Car Industry http://www.nytimes.com/2009/03/04/business/04auto.html?_r=1&ref=automobiles

71. Car Industry

75. U.S. Recession http://www.washingtonpost.com/wp-dyn/content/article/2010/01/01/AR2010010101196.html

76. U.S. Recession http://http://www.nytimes.com/2010/03/30/business/economy/30states.html

77. Input (Raw Material) Cotton Yarn Production Production of cotton yarn from fiber is clustered in major cotton growing countries, including the U.S., China, India, Pakistan, and Russia. ¾ are yarn production is done in less-developed countries.

80. Aerial Photograph of the Duwamish Corridor

83. Electronic Computer Industry Fig. 11-20: Computer and parts manufacturing requires highly skilled workers and capital. It is clustered in the Northeast and the West Coast. Need access to high-skilled labor. Ex. Silicon Valley and Texas. Proximity to Universities

84. Silicon Valley

91. Shirt Production Sewing cotton fabric into men’s and boys’ shirts is more likely to be located near customers in MDCs, but much production now occurs in LDCs. Ex. Soccer Jerseys in El Salvador.

92. Woven Cotton Fabric Production Production of woven cotton fabric is labor intensive and is likely to be located in LDCs. China and India account for over 75% of world production. Production is near cheap labor.

93. Globalization: Medellin

95. China and Exports http://www.nytimes.com/2009/10/14/business/global/14chinatrade.html?scp=3&sq=china%20trade&st=cse

96. India and Investment http://www.nytimes.com/2009/10/14/business/global/14rupee.html?scp=1&sq=india%20is%20awash%20in%20foreign%20investment&st=Search