Part 3 industry


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  • Alfred Weber 1868-1958 wrote Theory of the Location of Industries in 1909
  • Coal-fired plant in Utah burns 14,000 tons of coal per day. Steam rises from 600-foot stacks along with thousands of tons of climate-warming CO 2 per day. From National Geographic March 2006
  • The major manufacturing centers in Western Europe extend in a north-south band from Britain to Italy
  • Dresden after WW II firebombing which killed 30,000 to 100,000 people??
  • NYC-top Bottom-Coal-fired electrical plant 1940s
  • Who has Coal US 27% of world’s available coal Russia 17% China 13% India 10% Australian 9% South Africa 5% Other 19% From Nat. Geog. March 2006
  • Strip Mining in West Virginia-the 12,000 acre Hobet 21 mine covers a mountain top
  • Part 3 industry

    1. 1. Part 3
    2. 2. Location Theory• Location Theory – predicting where a business will or should be located.• Location of an industry is dependent on economic, political, cultural features as well as whim.• Location Theory Considers: – Variable costs-energy, transportation costs & labor costs – Friction of distance-increasing distance =increased time & cost
    3. 3. Location ModelsWeber’s Model-The Least Cost TheoryAlfred Weber, (1868-1958) a German economists, published Theory of the Location of Industries in 1909. His theory was the industrial equivalent of the Von Thunen Model.Manufacturing plants will locate where costs are the least.Three Categories of Costs:Transportation-the most important cost-usually the best site is where cost to transport raw material and finished product is the lowestLabor-high labor costs reduce profit-location where there is a supply of cheap, non-union labor may offset transportation costsAgglomeration-when a group of industries cluster for mutual benefit- shared services, facilities, etc.-costs can be lowerDeglomeration-when excessive agglomeration offsets advantage- eastern crowded cities
    4. 4. Location Models• Hotelling’s Model-Harold Hotelling (1895-1973) this economist modified Weber’s theory by saying the location of an industry cannot be understood with out reference to other similar industries-called Locational Interdependence• Losch’s Model-August Losch said that manufacturing plants choose locations where they can maximize profit. Theory: Zone of Profitability
    5. 5. Losch’s Model-Zone of Profitability
    6. 6. Major Industrial Regions of the World before 1950• First manufacturing belts were close to raw materials & good transportation• In addition to raw materials other factors: relative location, political situation, economic leadership, labor costs & education and training.• Four primary industrial regions were Western & Central Europe, Eastern North America, Russia & Ukraine and Eastern Asia
    7. 7. Westernand Central Europe
    8. 8. Western and Central Europe• Europe’s coal deposits stretch across northern France, north central Germany, northwestern Czech Rep. & southern Poland.• Colonial Empires gave France, Britain, Belgium, Netherlands & later Germany capital for industrial development.• Germany-The Ruhr & the Westphalian coal field, Saxony near Czech Rep. Silesia, now part of Poland.• Germany is still the leader producer of coal & steel and is Europe’s major industrial power.• European Coal and Steel Community was the predecessor of the European Union.
    9. 9. Manufacturing Centers in Western Europe• The manufacturing centers in Western Europe extend in a north-south band from Britain to Italy.• The are centered on coal fields and iron ore deposits and cross roads of transportation.
    10. 10. Western and Central Europe• The Ruhr, a small tributary to the Rhine, became the leading industrial region of Europe• Saxony and its cities of Leipzig & Dresden became known for cameras, textiles and ceramics.• Destruction of WW II- German factories were rebuilt-competitive edge over older factories of North America
    11. 11. The American Manufacturing Belt• America’s manufacturing belt extends from the Northeast coast to Iowa and from the St. Lawrence Valley to the Ohio & Mississippi Rivers.• New England & New York- light manufacturing New York with its large market has a huge skilled & semi-skilled labor force.• Philadelphia & Baltimore with heavy industry-iron ore was smelted in tidewater steel mills
    12. 12. The American Manufacturing Belt• NYC Port is a break-of-bulk (cargo shifted from one mode of transport to another) center.• Buffalo on Lake Erie grew after the Erie Canal was finished-early 19th cent.• Interior nodes-Pittsburgh, Cleveland, Detroit, Chicago- Gary, Milwaukee, St. Louis & Caterpillar manufacturing plant in Cincinnati-Appalachian coal Aurora, Illinois & Mesabi iron ore-autos, bulldozers, harvesters, & appliances
    13. 13. Major Manufacturing Regions of North America
    14. 14. Major Deposits of Fossil Fuels in North America
    15. 15. Open Pit Coal Mine in southern IllinoisCoal train moving across Montana is 1½miles long. It carries barely a day’s fuel for a large power plant. The US burnsover 1 billion tons of coal a year-has theworld’s richest coal deposits-enough to last 250 years.