Your SlideShare is downloading. ×
0
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Industrial location theories 2
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Industrial location theories 2

503

Published on

Published in: Education, Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
503
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
19
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. C L U S T E R I N G O F I N D U S T R I A L A C T I V I T I E S I N A P A R T I C U L A R A R E A INDUSTRIAL AGGLOMERATION www.StudsPlanet.com
  • 2. FORMS OF INDUSTRIAL AGGLOMERATION •Enlargement of an industrial plant •clustering of same/related industries •clustering of unrelated industries www.StudsPlanet.com
  • 3. ENLARGEMENT OF INDUSTRIAL PLANT ironsmelting steel making steel rolling ironansteel plant www.StudsPlanet.com
  • 4. INTERNAL ECONOMIES OF SCALE • Greater possibility of specialization • mass production • bulk purchasing • special transport rates • more efficient use of machines and labour • lower production cost www.StudsPlanet.com
  • 5. CLUSTERING OF RELATED INDUSTRIES engineering ship-building car making ironandsteel plant www.StudsPlanet.com
  • 6. EXTERNAL ECONOMIES OF SCALE • Inter-plant transport saving • access to common pool of skilled labour • presence of special training institutions • presence of ancillary services • research and development of collective facilities • sharing cost of certain operation www.StudsPlanet.com
  • 7. CLUSTERING OF UNRELATED INDUSTRIES engineering ship-building metal fabricating car making ironandsteel plant Chemical plant Textile industry Electronics www.StudsPlanet.com
  • 8. ADVANTAGES OF CLUSTERING • Enjoy an already well-developed infra-structure • enjoy a common pool of skilled labour and expertise • enjoy cheaper supplies of material inputs and ancillary services www.StudsPlanet.com
  • 9. An industry set up in an area Same industries move in Related industries move in A number of unrelated industries move in An industrial district consisting different types of factories forms www.StudsPlanet.com
  • 10. AGGLOMERATION Types of Linkage Material Linkages (Tangible) • Process Links • Sub-contract Links • Service Links • Marketing Links Information Linkages (Non-tangible) • Banks, stock-brokers, telephone and face to face contact between firms www.StudsPlanet.com
  • 11. AGGLOMERATION Forms of Linkages I www.StudsPlanet.com
  • 12. AGGLOMERATION Forms of Linkages II www.StudsPlanet.com
  • 13. AGGLOMERATION Reasons for agglomeration (External Economies of Scale) • Transport savings • Access to skilled labour • Presence of ancillary services. • Possibility of internal economies • Infrastructure savings • Attract investment • Research and development www.StudsPlanet.com
  • 14. AGGLOMERATION Industrial Inertia / Geographical Inertia Once a factory has been built on a particular site, it will tend to remain there even though the original factors no longer exist. It is a very important factor for hindering the movement of industries. www.StudsPlanet.com
  • 15. AGGLOMERATION • Reasons for industrial inertia • Costs of moving • Presence of a pool of labour • Costly to move a skilled labour • Costly to train unskilled labour • Presence of associated industries • Infrastructure might not be a available in the new area • Reputation www.StudsPlanet.com
  • 16. AGGLOMERATION Decentralization (Suburbanization of industries) www.StudsPlanet.com
  • 17. AGGLOMERATION Factors affecting decentralization • Expansion of firm • Redevelopment of inner cities • Inner city problems which hinder firms development • Demand for office space in the central city • Suburbanization (population & market) • Nature of industry • Government Encouragement www.StudsPlanet.com
  • 18. AGGLOMERATION ECONOMIES • Savings an individual enterprise derived from locational association with a cluster of other similar economic activities… • Multiplier Effect: The cumulative processes by which a given change sets in motion a sequence of further industrial employment and infrastructure growth. www.StudsPlanet.com
  • 19. AGGLOMERATION ECONOMIES • Work to minimize transaction costs (“Hidden costs”) • Agglomerations caused by: Localization Economies • Needs sufficient demand to justify or allow support networks to emerge. • Presence of skilled labor - attracts skilled labor to migrate • Technological spillovers - “being in the loop.” Ex. Silicon V. Urbanization Economies - Larger cities offer larger markets and offer business services • Others - Just-in-Time Manufacturing/Delivery • Allows producers to shift quickly and easily to differing levels of output (due to demand). • Eliminates need for large warehouses to store parts • Causes clustering of related industries www.StudsPlanet.com
  • 20. LEAN PRODUCTION / JUST IN TIME www.StudsPlanet.com

×