Transcript Various Categories and Classifications of Manufacturing

Unit 5
Topic: Types of Manufacturing
Types of Manufacturing
•
Pg. 217-218
…As either requiring large quantities of labour or machinery
to do the processing.
• Labour intensive: requires a lot of person hours to
produce the product.
Ex. Jewelry making, pottery, crafts,
customization…
• Capital intensive: requires a lot of equipment/computers
to make the product.
Ex. Automotive industry, bottling plant, pulp mill
Types of Manufacturing
•
…can be classified based on the output. The products
made!
•
Who uses the end product? Consumers or Businesses?
Heavy industry:
– produce products for other industry or businesses.
– large quantities of material, labor used
– outputs/products are usually high priced.
Ex. Ship yard, tractor production, helicopters
Light Industry:
- produces products for consumers use.
- smaller in size and cheaper
Ex. Pop industry, toys, clothing, food products.
Pg. 218
Classify the following as labour or capital intensive and light or
heavy industry.
a) Making water
turbines?
• Labour intensive
• heavy industry
b) Assembling
televisions?
• Labour intensive
• light industry
b) Shirt
manufacturing?
• Labour intensive
• Light industry
Pg. 218
Figure 13.2
b) Ship building?
• labour intensive
• heavy industry
Some Practice…
Read pages 216-218 – NOW!!!!
Location of Manufacturing Industries
Factors Affecting Industry Location = COSTS$$$$$$$$
Site/Physical Cost Factors
Pg. 224
1.
2.
3.
Proximity to raw material
Land
Energy
Site/Physical Cost Factors
1.
Proximity to raw material.
Pg. 224
• Closer to the resource IF heavy / bulky ( Ex. Wood,
minerals etc.)
•
REASON: to reduce transportation costs $$$$$.
Site/Physical Cost Factors
2.
Land
• a good price $$$$$
• level area
• good drainage,
• dense well-settled soil etc.
3. Energy
• Cost of obtaining?
• Obtain enough?
• Type?
Resource-Oriented industry VS
Market-Oriented Industry
Resource-oriented industry
• are located close to the resource
, where it is harvested or
collected
MAIN REASON(s):
– the inputs are heavy/bulky &
more costly to transport.
– near the resource to reduce its
wastage / weight AND cost
BEFORE transporting.
– Examples: Wood, minerals,
fishing, oil etc.
Resource-Oriented industry VS
Human-Based
Cost
Factors
Pg.
Market-Oriented Industry
Market-Oriented Industry
• located close to the buyers.
•
Ingredients ADDED to it
LATER.
•
Ship the light weight product
and ADD to it near the market
•
REASON:
SAVES $$$$ on shipping
ingredients that can been found
near the market. EX. WATER,
SOIL
224
WEIGHT-GAIN VS. WEIGHT-LOSS
WEIGHT-LOSS
• ALSO resource-oriented!
• Scrap and wastage will be removed from the resource.
• This DECREASES the weight of the finished product /
resource.
• Weight of THE RESOURCE is greater than the finished
product.
• reducing the extra weight and therefore extra cost of
transporting waste!
WEIGHT-GAIN VS. WEIGHT-LOSS
WEIGHT-GAIN
•
Market-oriented
•
Ingredients will be ADDED to the resource LATER.
•
This INCREASES the weight of the finished product /
resource.
•
Weight of END PRODUCT is greater than the input
resources
•
reducing the extra cost of extra weight!
Agglomeration Tendency
 The tendency for factories producing related products to
locate close to each other for mutual benefit.
 Ex. Car factory & tire factory. How does each benefit
by being located close to each other?
Industrial
parks
Industrial parks are attractive because of:
•Existing infrastructure of roads, on ramps and off ramps to
highways, large lots, sewer, ample electricity etc.
•Close location to related industries
•Pool of skilled workers
Human-Based Cost Factors
Labor force characteristics that attract business…

Wages expected: lower wages are better.

Training: highly skilled people are better.

Benefits: lower costs of employment insurance, pensions, etc.
are better.

Availability: high unemployment rate might attract
business…large available labor pool
Government Influences
1.
Transportation subsidies
–
Subsidies allow businesses to locate farther from the
resource.
–
Subsidies allow governments to encourage industry in rural
areas.
Examples:
• ice breakers in Botwood;
• roads in Labrador;
• cost of coastal transportation in Labrador;
• cost of crossing the Gulf. (Ferry Service)
Government Influences
2.
Tax breaks
– Provinces like NL have attempted to attract
business by offering tax breaks.
– The company obtains a financial break while the
province gets the advantage of putting people to
work.
Industry Location; The Global Picture
•
The highly industrialized areas on the earth's surface are
concentrated in 4 definite regions:
•
North America, Western Europe, Japan, and Australia
North
America
Western
Europe
Japan
Australia
Pg. 223
fig. 13.6
Case Study
Manufacturing Wrigley’s Gum
( handout )
Gum - How It’s Made
( 5 min. Video)