1	Chapter 11 Industry
2	Industrial Power Shift The recent success of Japan, South Korea, Taiwan, and other Asian countries is a dramatic change from the historic dominance of world industry by Western countries.
3	Key Issues Where did industry originate? Where is industry distributed? Why do industries have different distributions? Why do industries face problems?
4	Factory Locations Two connections are critical in determining the best location for a factory: where the markets for the product are located, and where the resources needed to make the product are located. A generation ago, industry was highly clustered in a handful of more developed countries, but industry has diffused to less developed countries. Geographers identify a community’s assets that enable it to compete successfully for industries, as well as handicaps that must be overcome to retain older companies.
5	Origin and Diffusion of the Industrial Revolution The Industrial Revolution Diffusion of the Industrial Revolution Diffusion from the iron industry Diffusion from the textile industry Diffusion from the United Kingdom
6	The Industrial Revolution From its beginnings in the north of the United Kingdom around 1750, the Industrial Revolution diffused to Europe and North America in the nineteenth century and to the rest of the world in the twentieth century. The Industrial Revolution resulted in new social, economic, and political inventions, not just industrial ones. Prior to the Industrial Revolution, industry was geographically dispersed across the landscape. Home-based manufacturing was known as the cottage industry system. The Industrial Revolution was the collective invention of hundreds of mechanical devices.
7	Industrial Revolution Hearths The iron industry was first to increase production through extensive use of (James) Watt’s steam engine, plus other inventions. The textile industry followed. From these two pioneering industries, new industrial techniques diffused during the nineteenth century.
8	Diffusion from the Iron Industry Iron ore is mined from the ground. The ore is not in a useful form for making tools, so it has to be smelted (melted) in a blast furnace (blasted with air to make its fires burn hotly). Henry Cort... patented two processes, known as puddling and rolling, in 1783, . . . to remove carbon and other impurities. The combination of Watt’s engine and Cort’s iron purification process increased iron manufacturing capability. The needs of the iron industry in turn generated innovations in coal mining, engineering, transportation, and other industries. These inventions in turn permitted the modernization of other industrial activities.
9	Coal Wood, the main energy source prior to the Industrial Revolution, became increasingly scarce because it was needed for construction of ships, buildings, and furniture, as well as for heat. High- energy coal. . . was plentiful. Because of the need for large quantities of bulky, heavy coal, the iron industry’s geographic pattern changed from dispersed to clustered. These factories clustered at four locations. Each site was near a productive coalfield.
10	Engineering In 1795 James Watt decided to go into business for himself rather than serve as a consultant to industrialists. He and Matthew Boulton established the Soho Foundry at Birmingham, England, and produced hundreds of new machines. From this operation came our modern engineering and manufacture of machine parts.
11	Transportation The new engineering profession made its biggest impact on transportation, especially canals and railways. In 1759 Francis Egerton, the second Duke of Bridgewater, decided to build a canal between Worsley and Manchester. This feat launched a generation of British canal construction. The canals soon were superseded by the invention of another transportation system, the railway, or “iron horse.” The railway was not invented by one individual, but through teamwork. Two separate but coordinated engineering improvements were required: the locomotive, and iron rails for it to run on. The first public railway was opened between Stockton and Darlington in the north of England in 1825.
12	Diffusion from the Textile Industry A series of inventions between 1760 and 1800 transformed textile production from a dispersed cottage industry to a concentrated factory system. Richard Arkwright. . . improved the process of spinning yarn. He produced a spinning frame in 1768 . . . then . . . a process for carding (untwisting the fibers prior to spinning). These two operations required more power than human beings could provide. The textile industry joined the iron industry early in adopting Watt’s steam engine. From the clothing industry’s need for new bleaching techniques emerged another industry that is characteristic of the Industrial Revolution: chemicals.
13	Chemicals The traditional method of bleaching cotton involved either exposing the fabric to the Sun or boiling it,. . . first. . . in a solution of ashes and then in sour milk. In 1746 John Roebuck and Samuel Garbett established a factory in which sulfuric acid, obtained from burning coal, was used instead of sour milk. In 1798 Charles Tennant, who produced a bleaching powder made from chlorine gas and lime, a safer product than sulfuric acid. Sulfuric acid was also used to dye clothing. Combined with various metals, sulfuric acid produced another acid, called vitriol, the color of which varied with the metal,. . . blue with copper, green with iron, and white with zinc. Natural-fiber cloth, such as cotton and wool, is now combined with chemically produced synthetic fibers,. . . made from petroleum or coal derivatives. Today the largest textile factories are owned by chemical companies.
14	Food Processing Another industry derived from the chemical industry is food processing. Canning requires high temperature over time. . . some four to five hours, depending on the product. This is where chemical experiments contributed. Calcium chloride was added to the water, raising its boiling temperature from 100°C to 116°C (2 12°F to 240°F). This reduced the time for proper sterilization to only 25 to 40 minutes. Consequently, production of canned foods increased tenfold.
15	Diffusion from the United Kingdom Britain’s Crystal Palace became the most visible symbol of the Industrial Revolution, built to house the 1851 “Great Exhibition of the Works of Industry of All Nations.” When Queen Victoria opened the Crystal Palace, the United Kingdom was the world’s dominant industrial power. From the United Kingdom, the Industrial Revolution diffused eastward through Europe and westward across the Atlantic Ocean to North America. From these places, industrial development continued diffusing to other parts of the world.
16	Diffusion of Railways Europeans developed many early inventions of the Industrial Revolution in the late 1700s. The Belgians led the way in new coal-mining techniques, the French had the first coal- fired blast furnace for making iron, and the Germans made the first industrial cotton mill. Political instability delayed the diffusion of the Industrial Revolution in Europe. Europe’s political problems retarded development of modern transportation systems, especially the railway. Railways in some parts of Europe were delayed 50 years after their debut in Britain. The Industrial Revolution reached Italy, the Netherlands, Russia, and Sweden in the late 1800s. Other Southern and Eastern European countries joined the Industrial Revolution during the twentieth century.
17	Diffusion to the United States Industry arrived a bit later in the United States than in Western European countries like France and Belgium, but it grew much faster. The first U.S. textile mill was built in Pawtucket, Rhode Island, in 1791, by Samuel S later, a former worker at Arkwright’s factory in England. The textile industry grew rapidly after 1808, when the U.S. government imposed an embargo on European trade to avoid entanglement in the Napoleonic Wars. The United States had become a major industrial nation by 1860, second only to the United Kingdom. However, except for textiles, leading U.S. industries did not widely use the new industrial processes until the final third of the nineteenth century. Although industrial development has diffused across Earth’s surface, much of the world’s industry is concentrated in four regions.
18	World Industrial Regions North America Industrialized areas in North America Changing distribution of U.S. manufacturing Europe Western Europe Eastern Europe East Asia
19	Manufacturing Regions
20	North America Manufacturing in North America is concentrated in the northeastern quadrant of the United States and in southeastern Canada. Only 5 percent of the land area of these countries.., contains one-third of the population and nearly two-thirds of the manufacturing output. This manufacturing belt has achieved its dominance through a combination of historical and environmental factors. Early. . . settlement gave eastern cities an advantage. . . to become the country’s dominant industrial center. The Northeast also had essential raw materials. . . and good transportation. The Great Lakes and major rivers. . . were supplemented in the 1 800s by canals, railways, and highways.
21	Industrial Regions of North America
22	Manufacturing Value Change
23	Europe and Manufacturing The Western European industrial region appears as one region on a world map. In reality, four distinct districts have emerged, primarily because European countries competed with one another to develop their own industrial areas. Eastern Europe has six major industrial regions. Four are entirely in Russia, one is in Ukraine, and one is southern Poland and northern Czech Republic.
24	Manufacturing Centers in Western Europe
25	Rhine—Ruhr Valley Western Europe’s most important industrial area is the Rhine—Ruhr Valley... in northwestern Germany, Belgium, France, and the Netherlands. Within the region, industry is dispersed rather than concentrated in one or two cities. No individual city has more than one million inhabitants. The Rhine divides into multiple branches as it passes through the Netherlands. The city of Rotterdam is near to where several major branches flow into the North Sea. This location at the mouth of Europe’s most important river has made Rotterdam the world’s largest port. Iron and steel manufacturing has concentrated in the Rhine—Ruhr Valley because of proximity to large coalfields. Access to iron and steel production stimulated the location of other heavy-metal industries, such as locomotives, machinery, and armaments.
26	Mid-Rhine The second most important industrial area in Western Europe includes southwestern Germany, northeastern France, and the small country of Luxembourg. In contrast to the Rhine—Ruhr Valley, the German portion of the Mid-Rhine region lacks abundant raw materials, but it is at the center of Europe’s most important consumer market. The French portion of the Mid-Rhine region—Alsace and Lorraine—contains Europe’s largest iron- ore field and is the production center for two-thirds of France’s steel. Tiny Luxembourg is also one of the world’s leading steel producers, because the Lorraine iron-ore field extends into the southern part of the country.
27	United Kingdom The Industrial Revolution originated in the Midlands and northern England and southern Scotland, in part because those areas contained a remarkable concentration of innovative engineers and mechanics during the late eighteenth century. The United Kingdom lost its international industrial leadership in the twentieth century. Britain was saddled with outmoded and deteriorating factories and their “misfortune” of winning World War II. The losers, Germany and Japan, received American financial assistance to build modern factories, replacing those destroyed during the war. The United Kingdom expanded industrial production in the late twentieth century by attracting new high-tech industries that serve the European market. Japanese companies have built more factories in the United Kingdom than has any other European country. Today British industries are more likely to locate in southeastern England near the country’s largest concentrations of population and wealth and the Channel Tunnel.
28	Northern Italy A fourth European industrial region of some importance lies in the Po River Basin of northern Italy. Modern industrial development in the Po Basin began with establishment of textile manufacturing during the nineteenth century because of two key assets: numerous workers and inexpensive hydroelectricity.
29	Manufacturing Centers in Eastern Europe and Russia
30	Manufacturing Centers in East Asia
31	Industrial Location Situation factors Location near inputs Location near markets Transport choices Site factors Land Labor Capital Obstacles to optimum location
32	Situation Factors A manufacturer tries to locate its factory as close as possible to both buyers and sellers. If the cost of transporting the product exceeds the cost of transporting inputs, then optimal plant location is as close as possible to the customer. Conversely, if inputs are more expensive to transport, a factory should locate near the source of inputs. If the weight and bulk of any one input is particularly great, the firm may locate near the source of that input to minimize transportation cost.
33	Copper Industry in North America
34	Integrated Steel Mills
35	Steel Minimills
36	Location near Markets The cost of transporting goods to consumers is a critical locational factor for three types of industries:bulk-gaining, single-market, and perishable.
37	Bulk-gaining Industries A bulk-gaining industry makes something that gains volume or weight during production. Soft-drink bottling is a good example. Major soft-drink companies like Coca-Cola and Pepsi-co manufacture syrups according to proprietary recipes and ship them to bottlers in hundreds of communities. Because water is available where people live, bottlers can minimize costs by producing soft drinks near their consumers instead of shipping water (their heaviest input) long distances.
38	Location of Beer Breweries
39	Other Bulk-Gaining Industries More commonly, bulk-gaining industries manufacture products that gain volume rather than weight. Common fabricated products include televisions, refrigerators, and motor vehicles. If the fabricated product occupies a much larger volume than its individual parts, then the cost of shipping the final product to consumers is likely to be a critical factor.
40	Chevrolet Assembly Plants, 1955
41	Chevrolet Assembly Plants, 2003
42	Site Selection for Saturn
43	Single-Market Manufacturers Single-market manufacturers make products sold primarily in one location, so they also cluster near their markets. For example, several times a year, buyers come to New York from all over the United States to select high-style apparel. Manufacturers of fashion clothing then receive large orders for certain garments to be delivered in a short time. Consequently, high-style clothing manufacturers concentrate around New York. Manufacturers in turn demand rapid delivery of specialized components, such as clasps, clips, pins, and zippers. The specialized component manufacturers, therefore, also concentrate in New
44	Motor Vehicle Parts Plants
45	Perishable Products To deliver their products to consumers as rapidly as possible, perishable-product industries must be located near their markets. Processors of fresh food into frozen, canned, and preserved products can locate far from their customers. The daily newspaper is an example of a product other than food that is highly perishable because it contains dated information. In European countries, national newspapers are printed in the largest city during the evening and delivered by train throughout the country overnight. Until recently, publishers considered the United States to be too large to make a national newspaper feasible. With satellite technology, however, The New York Times, Wall Street Journal, and USA Today have moved in the direction of national delivery.
46	Ship, Rail, Truck, or Air? Firms seek the lowest-cost mode of transport, but the cheapest of the four alternatives changes with the distance that goods are being sent. The farther something is transported, the lower is the cost per kilometer (or mile). The cost per kilometer decreases at different rates for each of the four modes, because the loading and unloading expenses differ for each mode. Trucks are most often used for short- distance delivery and trains for longer distances. Ship transport is attractive for very long distances. Air is normally the most expensive alternative for all distances, but an increasing number of firms transport by air to ensure speedy delivery of small-bulk, high-value packages. Late at night, planes filled with packages are flown to a central hub airport then flown to airports nearest their destination, transferred to trucks, and delivered the next morning.
47	Break-of-Bulk Points Regardless of transportation mode, cost rises each time that inputs or products are transferred from one mode to another. Many companies that use multiple transport modes locate at a break-of-bulk point. A break-of-bulk point is a location where transfer among transportation modes is possible. Important break-of-bulk points include seaports and airports.
48	Site Factors Locations near markets or break-of-bulk points have become more important than locations near raw materials for firms in developed countries. However, situation factors do not explain the growing importance of Japanese and other Asian manufacturers. Japan is far from markets. The cost of conducting business varies among locations, depending on the cost of three production factors: land, labor, and capital.
49	Land The land needed to build one-story factories is more likely to be available in suburban or rural locations. Also, land is much cheaper in suburban or rural locations than near the center city. Industries may be attracted to specific parcels of land that are accessible to energy sources. Prior to the Industrial Revolution, running water and burning of wood were the two most important sources of energy. When coal became dominant in the late eighteenth century, industry began to concentrate in fewer locations. Electricity became an important source of energy for industry in the twentieth century. Although large industrial users usually pay a lower rate than do home consumers industries with a particularly high demand for energy may select a location with lower electrical rates. The aluminum industry, for example, requires a large amount of electricity. The first aluminum plant was located near Niagara Falls. Aluminum plants have been built near other sources of inexpensive hydroelectric power, including the Tennessee Valley and the Pacific Northwest. Industry may also be attracted to a particular location because of amenities at the site.
50	Labor A labor-intensive industry is one in which labor cost is a high percentage of expense. Some labor intensive industries require highly skilled labor to maximize profit, whereas others need less skilled, inexpensive labor.
51	Textile and Clothing Industries Textile and clothing production are prominent examples of labor intensive industries that generally require less skilled, low-cost workers. The global distributions of spinning, weaving, and sewing plants are not the same, because the three steps are not equally labor-intensive. (Some) natural fiber manufacturing is concentrated in countries where the principal input—cotton-—is grown.
52	Cotton Yarn Production
53	Woven Cotton Fabric Production
54	Shirt Production
55	U.S. Textile and Clothing Industries U.S. textile weavers and clothing manufacturers have changed locations to be near sources of low-cost employees. U.S. textile and clothing firms were concentrated in the Northeast during the nineteenth century (employing) European immigrants. Workers began to demand better working conditions and higher wages around 1900. Their claim was bolstered by tragic events, such as the 1911 Triangle Shirtwaist Company fire in New York City.
56	Hosiery and Sock Production
57	Knit Outerwear Manufacturing
58	Skilled Labor Industries Companies may become more successful by paying higher wages for skilled labor than by producing an inferior product made by lower-paid, less skilled workers. Computer manufacturers have concentrated in the highest-wage regions in the United States. These regions have a large concentration of skilled workers because of proximity to major university centers. Traditionally in large factories, each worker was assigned one specific task to perform repeatedly. Some geographers call this approach Fordist, because the Ford Motor Company was one of the first to organize its production this way. Relatively skilled workers are needed to master the wider variety of assignments given them under more flexible post-Fordist work rules.
59	Electronic Computer Industry
60	Capital Financial institutions in many LDCs are short of funds, so new industries must seek loans from banks in MDCs. Local and national governments increasingly attempt to influence the location of industry by providing financial incentives. These include grants, low-cost loans, and tax breaks.
61	Obstacles to Optimum Location The location that a firm chooses cannot always be explained by situation and site factors. Many industries have become “footloose,” meaning they can locate in a wide variety of places. An industry may be especially footloose if it uses facsimile machines, electronic mail, the Internet, and other communications systems to move inputs and products.
62	Industrial Problems Global perspective Stagnant demand Increased capacity More developed countries Trading blocs Disparities within trading blocs Less developed countries Old problems for LDCs New problems for LDCs
63	Stagnant Demand From the Industrial Revolution’s beginnings in the late 1700s until the 1970s, industrial growth in more developed countries was fueled by long-term increases in population and wealth. The growth formula was simple: More people with more wealth demanded more industrial goods. However, demand for many manufactured goods has slowed in MDCs during the past quarter century. More developed countries now have little, if any, population growth. Wages have not risen as fast as prices during the past two decades.
64	World Steel Production, 1973
65	Increased Capacity Worldwide While demand for products such as steel has stagnated during the past quarter century, global capacity to produce them has increased. Higher industrial capacity is primarily a result of two trends: the global diffusion of the Industrial Revolution and the desire by individual countries to maintain their production despite a global overcapacity. Historically, manufacturing was concentrated in a few locations. Industrial growth through increased international sales was feasible when most of the world was organized into colonies and territories controlled by MDCs. Few colonies remain in the world today, and nearly every independent country wants to establish its own industrial base.
66	Steel Production, 1973 and 2002
67	Change in Steel Production, 1973–2002
68	Industrial Problems in More Developed Countries Countries at all levels of development face a similar challenge: to make their industries competitive in an increasingly integrated global economy. Each state faces distinctive geographical issues in ensuring that their industries compete effectively.
69	Impact of Trading Blocs Industrial competition in the more developed world increasingly occurs not among individual countries, but within regional trading blocs. The three most important trading blocs are the Western Hemisphere, Western Europe, and East Asia. Within each bloc, countries cooperate in trade. Each bloc then competes against the other two.
70	Cooperation within Trading Blocs The North Atlantic Free Trade Agreement brought Mexico into the free trade zone with the United States and Canada. The three NAFTA partners have been negotiating with other Latin American countries. The European Union has eliminated most barriers to trade through Western Europe. Cooperation among countries is less formal in East Asia, in part because Japan’s neighbors have much lower levels of economic development and unpleasant memories of Japanese military aggression during the 1930s and 1940s. The free movement of most products across the borders has led to closer integration of industries within North America and within Western Europe.
71	Competition among Trading Blocs The three trading blocs have promoted internal cooperation, yet they have erected trade barriers to restrict other regions from competing effectively. Faced with a decline in domestic steel production of about one-third during the late 1970s, the U.S. government negotiated a series of voluntary export-restraint agreements with other major steel-producing countries. When these quotas were in effect—from 1982 until 1992U.S. steel companies spent $24 billion modernizing their plants and buying more efficient equipment. The number of steelworkers fell by two-thirds. Steel towns have suffered severely from this decline. Declines in other manufacturing sectors in MDCs have had similar impacts in their communities.
72	Transnational Corporations Cooperation and competition within and among trading blocs take place primarily through the actions of large transnational corporations, sometimes called multinational corporations. Initially, transnational corporations were primarily American-owned, but in recent years especially Japan, Germany, France, and the United Kingdom have been active as well. Some transnational corporations locate factories in other countries to expand their markets. Transnational corporations also open factories in countries with lower site factors to reduce their production cost. The site factor that varies most dramatically among countries is labor. Japanese transnational corporations have been especially active in the United States in recent years. Most plants have been located in a handful of interior states, including Ohio, Indiana, Kentucky, Michigan, Tennessee, and Illinois. German transnationals have clustered in the Carolinas.
73	Disparities within Trading Blocs One country or region within a country may have lower levels of income and amenities because it has less industry than other countries or regions within the trading bloc. Disparities within Western Europe. Europe’s most important industrial areas, such as western Germany and northern Italy, are relatively wealthy. Disparities exist at the scale of the individual country as well. Industry is concentrated in the regions most accessible to Western Europe’s core of population, wealth, and industry. Germany has had a particularly difficult problem with regional disparities, a legacy of Communist-run East Germany (German Democratic Republic). The European Union, through its European Regional Development Fund, assists its three least industrialized member countries—Greece, Ireland, and Portugal—as well as regions in three other countries that lack industrial investment—Northern Ireland (part of the United Kingdom), southern Italy, and most of Spain. Funds also aid a number of declining industrial areas. A number of Western European countries use incentives to lure industry into poorer regions and discourage growth in the richer regions.
74	Disparities within the United States The problem of regional disparity is somewhat different in the United States. The South, historically the poorest U.S. region, has had the most rapid growth since the 1930s, stimulated partly by government policy and partly by changing site factors. The Northeast, traditionally the wealthiest and most industrialized region, claims that development in the South has been at the expense of old industrialized communities in New England and the Great Lakes states. Regional development policies scored some successes as long as national economies were expanding overall, because the lagging regions shared in the national growth. But in an era of limited economic growth for MDCs, govermnents increasingly questioned policies that strongly encourage industrial location in poorer regions.
75	Industrial Problems in Less Developed Countries Knowing that their agriculture-based economies offer limited economic growth, the leaders of virtually every LDC encourage new industry. In some respects, LDCs face obstacles similar to those once experienced by today’s MDCs. One of the biggest issues is distance from markets. To minimize geographic isolation, industrializing countries invest scarce resources in constructing and subsidizing transportation facilities. Another issues is inadequate infrastructure. The LDCs obtain support services by importing advisers and materials from other countries, or by borrowing money to develop domestic sources.
76	New Problems for LDCs In addition, industrializing countries now face a new obstacle. Few untapped foreign markets remain to be exploited. New industries must sell primarily to consumers inside their own country. According to principles of economic geography, (in addition to market access), there are two other critical locational factors: access to raw materials and site factors. In fact, new African factories generally are those for which these factors are critical: (1) raw material access, (2) site factors. Transnational corporations have been especially aggressive in using low-cost labor in LDCs. Transnational corporations can profitably transfer some work to LDCs, despite greater transportation cost. Operations that require highly skilled workers remain in factories in MDCs. This selective transfer of some jobs to LDCs is known as the new international division of labor. Many African countries possess iron ore. But steel, perhaps the most important industry for a less developed country, has had difficulty getting a foothold in Africa. Without cooperation among several small states, steel manufacturing is not likely to develop further in Africa.
77	Chapter 11 Industry