Transcript Manufacturing processing raw materials into a finished state

Basic vs. Non-Basic
• Basic: Industry that sells its products outside the
community, bringing money into the community
– Example: Mine  supports local economy
• Non-Basic: Industry that sells its products within
the community; it does not bring money into the
community
– Example: Chef in Restaurant  recycles
money within the community. Doesn’t bring
new money in.
Classify These
Job Description
Category
Coal Miner in BC
Basic
Hairdresser at Shopping Mall
Non-Basic
Art Teacher
Non-Basic
Vice-Pres of Scotia Bank
Basic
Air Canada Pilot
Basic
School Bus Driver
Non-Basic
• Canada & It’s Various Industries Video (15
Mins)
– https://www.youtube.com/watch?v=JHkMB442xq
Y
– Complete questions.
– Location Factors Statement Sheet
• Hand in
Location Factors & Industry
• What determines the location of Industries?
• In groups of 2-4, come up with a list of key
factors that determine where an industry or
manufacturing will be located.
• You will have 5 minutes to come with a list
of 3-5 well explained factors. Be ready to
share!!!
Location Factors
• Location factors are circumstances, such as
the presence of raw materials or highlyskilled labours, that can be used to explain
why manufacturers locate where they do.
• There are 7 location factors that attempt to
explain why these industries located where
they do.
1. Availability of Raw Materials
• Some industries must relocate near the
sources of their major raw materials.
• Example:
– Fruits and vegetable processing companies are
usually located where the crops are grown due to
F&V needing to be processed shortly after picking.
– McCain Foods  New Brunswick
• WHY?
2. Location of Markets
• Many industries want to be near their major
customers to reduce delivery costs. Close
proximity to consumers also reduces the time
it takes to make deliveries.
• Example:
– Dairy farms are often located near the city due to
the expiring nature of there product
– Fruits & Vegetables
3. Availability of Fresh Water & Power
• For companies that use vast amounts of fresh
water for cooling and cleaning purposes, a
location near a major lake or river is
important.
• For other companies, must locate near a large
enough source of power to maintain their
production
• Example: Steal Mills are almost always located
on rivers or lakes
4. Labour Supply
• A company needs to consider the
quality, availability and cost of labour
supply.
– Some industries need a relatively cheap labour cost
supply.
• Example: LuluLemon, clothing & retail industry
– Others need a more costly, highly skilled labour
supply
• Example: Nortel Networks
5. Transportation
• Every company needs fast and efficient
transportation. However, for some
transportation is the most important location
factor.
– Example:
• Steel companies in Hamilton, Ontario are postitioned to
receive raw materials by ship.
• The Dow Chemical Company is located in Sarnia,
Ontario strictly due to arrival of oil from Western
Canada via pipelines.
6. Political Factors
• Governments try to attract and keep industry
by providing a good business climate.
• Government can offer tax incentives or build
new highways to make an area more sought
after.
– Example: Highway 407 outside of Toronto
– Built as an incentive to attract new and keep other
industries in the area
7. Circumstances
• Sometimes the reason a company
chooses a particular location is because
of another influence that is more general
and difficult to measure.
• Example: Return of the Winnipeg Jets
– Mark Chipman wanted to bring the team back to
his hometown. Are we a big enough city to support
a team after losing them in 1996?
– He had to weigh the “hunger” for a hockey team vs
the cost it would be to him & True North..
– I think it paid off..
Winnipeg, MB
• What location factors do we possess that
make us an idea location for manufacturers
to set up shop?
• IKEA – shipping hub to Prairies & Northwest
Ontario.
• Red & Assiniboine Rivers – at one time
offered transportation & shipping to this
area.
• The Shipping Hub of the West: everything
being shipped from one side of Canada to
the other goes through us..
Manufacturing
• What do you think of when you hear the word
Manufacturing?
• Write down 3-5 ideas that come to mind.
Manufacturing
Manufacturing processing raw materials into a
finished state
It is responsible for almost all of the products
needed by consumers and companies.
There are two main types of manufacturing
1) Primary Manufacturing
2) Secondary Manufacturing
Manufacturing
• Primary Manufacturing: taking a raw material
extracted by primary industry and
manufacture it into a useable material that
can be manufactured into something else.
– Example: iron, ore, coal  steel
• Secondary Manufacturing: using a
manufactured product to manufacture a new
product.
– Example: steel  cars
Manufacturing
• Manufacturing is one of Canada’s most important
economic sectors by almost all statistical measures
• This includes being a leader in GDP, imports,
exports, research and development, and
employment.
GDP (Gross Domestic Product): total value of goods
and services produced within a country per person.
Imports: product brought into a country from another
Exports: products or services produced in once
country for sale in another country
Manufacturing in Canada
Manufacturing & Employment
• Manufacturing is the 3rd largest employer in the
country with 1.85 million Canadians directly
employed in the sector today.
• Manufacturers directly employ more than 1 in
every 10 working Canadians.
• In addition to the direct employment,
manufacturers support hundreds of thousands of
jobs in related sectors, such as
– Construction
– Transportation services
– Insurance
– Real estate.
Manufacturing & Employment
• The 3 provinces with the highest
percentage of direct employment in the
manufacturing sector accounts are
– Quebec (13 percent)
– Ontario (12 per cent)
– Manitoba (10.3 per cent)
• In other provinces the direct
employment concentration in
manufacturing is lower, but it still
represents a significant percentage of
Manufacturing By Province
Assignment for Today
• Use the Pearson Atlas to complete Questions
1-8 in your Canadian Manufacturing Industry.