Industrial Location

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  • Industrial Location

    1. 1. Industrial Activity and Geographic Location
    2. 2. Industrial Revolution: <ul><li>Britain </li></ul><ul><li>Late 1700s </li></ul><ul><li>Textile industry </li></ul><ul><li>Diffused to European continent. </li></ul>
    3. 3. Factors Influencing Industrial Location
    4. 4. 1. Raw Materials <ul><li>Access is important today. (Japan has few natural resources, but does have easy access.) </li></ul><ul><li>Reduced cost of transporting has lessened the importance of proximity. </li></ul>
    5. 5. Bulk-reducing industries are oriented towards the raw material. <ul><li>Copper, for example. The ore is heavy, so mills are located near the mines in order to “reduce the bulk” so that the final product costs less to transport. </li></ul>
    6. 6. 2. Power <ul><li>Early industries were located near coal fields. (Pattern persists in many places.) </li></ul><ul><li>Today industries are more widely dispersed because there are other sources of power and energy can be transported rather easily. </li></ul>
    7. 7. 3. Labor <ul><li>Labor intensive industries (making clothing, assembling electronic parts) require cheap labor. </li></ul>
    8. 8. <ul><li>Some industries require skilled labor. (Automobile assembly, precision instruments.) </li></ul>
    9. 9. 4. Markets <ul><li>The importance of proximity varies, but some industries are market-oriented. Some examples are… </li></ul>
    10. 10. <ul><li>--heavy and bulky items such as cement. </li></ul>
    11. 11. <ul><li>…bulk-gaining industries such as soft drinks and beer. </li></ul>
    12. 12. <ul><li>…perishable products such as bakeries, milk bottlers, and daily newspapers. </li></ul>
    13. 13. 5. Transportation <ul><li>The cost of transportation can affect other variables. </li></ul><ul><li>Port cities are attractive locations because a location here would cut down on transport costs. (Break-of-bulk points) </li></ul>
    14. 14. Mode of transportation <ul><li>Ship? </li></ul><ul><li>Rail? </li></ul><ul><li>Truck? </li></ul><ul><li>Air? </li></ul>
    15. 15. Container systems have decreased the cost of transportation.
    16. 16. 6. Organizational and entrepreneurial setting <ul><li>Political stability </li></ul><ul><li>Friendly government </li></ul><ul><li>Lack of corruption </li></ul><ul><li>Availability of capital </li></ul>
    17. 17. Role of Infrastructure <ul><li>Industrial location decisions can be influenced by the availability of supporting transportation and communication systems. </li></ul>
    18. 18. 7. Agglomeration <ul><li>The clustering of support industries and a labor pool can encourage location to a certain place. </li></ul>
    19. 19. <ul><li>Excessive agglomeration can lead to overcrowding, higher rents, and increasing costs of labor. </li></ul>Tokyo
    20. 20. <ul><li>Deglomeration is occurring in some locations. In the US, industry is becoming more suburban. </li></ul>
    21. 21. 8. Environment <ul><li>The film industry requires sunny climate. (Hollywood and Bollywood) </li></ul><ul><li>Aircraft manufacturers require a good climate </li></ul>
    22. 22. Amenity sites <ul><li>Some industries locate in places that provide amenities for their employees. </li></ul>
    23. 23. 9. Locational Interdependence
    24. 24. Footloose Industries <ul><li>Footloose manufacturing industries have no strong locational preference--they are neither market- nor resource-oriented. </li></ul><ul><li>They have more flexibility in terms of location because they are not so concerned about transportation costs. </li></ul><ul><li>An example would be a high-tech industry such as computing.or IT companies that transmit information over phone lines. </li></ul>
    25. 25. Ubiquitous Industries are located everywhere in proportion to the population.
    26. 28. Weber’s Least Cost Theory Weber considered three factors: <ul><li>Transportation (most important.) </li></ul><ul><li>Labor </li></ul><ul><li>Agglomeration </li></ul><ul><li>(Substitution Principle: If other costs go down, an industry can absorb a higher cost of transportation.) </li></ul>

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