Transcript INDUSTRY ON THE MOVE

INDUSTRY ON THE MOVE
OBJ: TO EXPLAIN THE REASONS FOR
CHANGING DISTRIBUTION OF
INDUSTRY AROUND THE WORLD
CHANGING US MANUFACTURING
SHIFTING SITE FACTORS: LAND LABOR & CAPITAL
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FROM NORTHEAST TO SOUTH
SOUTH TRADITIONALLY POOR
GOVERNMENT POLICIES TO EASE
DISPARITY
INFRASTRUCTURE
TENNESSEE VALLEY AUTHORITY
POST WWII A/C & DEVELOPMENT
RIGHT TO WORK LAWS: REQUIRE
FACTORIES TO MAINTAIN AN
“OPEN SHOP” & PROHIBITS A
“CLOSED SHOP” CAN’T FORCE
WORKERS TO PAY UNION DUES
OR JOIN UNION
NATURAL RESOURCES GULF
COAST
LOW COST LABOR: TEXTILES
FROM NEW ENGLAND TO
APPALACHIA – 99% OF US
HOSIERY & SOCK PRODUCERS
½ IN N.CAROLINA
INTERREGIONAL SHIFTS IN EUROPE
• FROM N. & W. EUROPE TO S. & E.
EUROPE
• GOVERNMENT POLICIES ACTIVELY
ENCOURAGED MOVEMENT
• EU SUBSIDIES TO ECO. DEPRESSED
AREAS & WHERE INCOMES ARE
LOWER THAN AVG
• SPAIN NO LONGER ISOLATED
• REVITALIZE TRAD’L AREAS:
LIVERPOOL
• CENTRAL EUROPES APPEAL
LABOR & MARKET PROXIMITY
NEW EMERGING INDUSTRIAL REGIONS
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INDUSTRY’S SHARE OF TOTAL ECO OUTPUT IN
DEVELOPED COUNTRIES HAS DECLINED
SINCE 1970’S & GROWN IN DEVELOPING
SITE FACTORS: LABOR, LABOR, LABOR – LABOR
INTENSIVE INDUSTRIES
SELECTIVE TRANSFER OF SOME JOBS TO
DEVELOPING COUNTRIES = NEW INTERNATIONAL
DIVISION OF LABOR
1) OUTSOURCING – TURNING OVER MUCH OF
PRODUCTION TO INDEPENDENT SUPPLIERS –
OPPOSITE OF VERTICAL INTEG.
NAFTA 1994: NAME SITE & SITUATION FACTORS
MAQUILADORAS: PLANTS IN MEXICO NEAR THE
U.S. BORDER – ASSEMBLY MOSTLY
1 MILLION JOBS IN MEXICO
FEARS: LOSS OF JOBS, LAX ENFORCEMENT OF
ENVIRONMENTAL STANDARDS
BRIC: BRAZIL, RUSSIA, INDIA, CHINA – SOME
CONSIDER SOUTH AFRICA (BRICS)
FUTURE OF MFG., CONTROL ¼ WORLD’S LAND,
3BILL POP., ONLY 1/6 WORLD GDP
C&I: LABOR; R&B: INPUTS
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PROXIMITY TO SKILLED
LABOR & MARKETS –
SITUATION
FORDIST PRODUCTION =
MASS PRODUCTION &
ASSEMBLY LINE: NO SKILL
POST-FORDIST PRODUCTION:
LEAN & FLEXIBLE
PRODUCTION
CHARACTERIZED BY 4 TYPES
OF WORK RULES
TEAMS, PROBLEM SOLVING,
LEVELING, PRODUCTIVITY
COMPUTER MFG REQUIRES
HIGH SKILL, HIGH WAGE
SPECIALTY CLOTHING STILL IN
US
JUST IN TIME DELIVERY:
SHIPMENT OF PARTS &
MATERIALS TO ARRIVE AT A
FACTORY MOMENTS BEFORE
THEY’RE NEEDED
EXAMPLES? DISRUPTIONS?
REVITALIZATION