Transcript Industry: Part II

Industry: Part II
Industrialization
and Chevrolet (General Motors)
Major Industrial Regions of the
World before and after 1950
Industrialization Through WWI
• The four primary industrial regions:
1) Western & Central Europe
2) Eastern North America
3) Russia & Ukraine
4) Eastern Asia
Western and
Central Europe
Late 18th Century:
Britain
France
Belgium
Netherlands
Germany: 3 districts?
Early 20th Century:
Italy: What area?
Spain: What area?
Sweden
Finland
Major Manufacturing Regions of North America
-Benefitted from overseas resources
-Large coal and gas reserves to provide energy to manufacturing plants
-US capitalized on industry after Western Europe destruction during WWI and WWII
Major Manufacturing Regions of Russia
-Many resources throughout the vast expanse of land
-Volga River provided an energy resource and transportation through canals
Major
Manufacturing
Regions of East
Asia
-Japan imported raw
materials from it’s colonial
empire into Korea, Taiwan,
and China
-3 major belts in Japan?
Think of an industrial area where you live,
either an industrial park or a major
conglomeration of industries. Consider the
models of industrial location yesterday and
determine whether any of the models apply
to this place.
Key Question:
How has Industrial
Production Changed?
Post-Fordist
Fordist – dominant mode of mass production
during the twentieth century, production of
consumer goods at a single site.
Post-Fordist – current mode of production with a
more flexible set of production practices in which
goods are not mass produced. Production is
accelerated and dispersed around the globe by
multinational companies that shift production,
outsourcing it around the world and only
producing what is desired by consumers.
Planned Obsolescence
• What is planned obsolescence?
• Who is guilty?
Domestic Car Production in a
Post-Fordist World
•
Due to the increasing demand for better, longer-lasting, more eye-catching vehicles, American consumers
have fled domestic producers and found their home with foreign-produced cars that are longer-lasting,
sleeker and more fun to drive. Popular foreign cars include…Toyota Camry, Toyota Corolla, Honda Accord,
Honda Civic, Hyundai Sonata, Honda CRV and Nissan Altima. With Americans choosing foreign
automobiles , domestic producers were forced to make better, longer-lasting, more appealing vehicles that
offer better gas mileage. Have they succeeded?
• What are Americans driving?
– Cars
1) Toyota Camry
2) Toyota Corolla
3) Nissan Altima
4) Honda Civic
5) Honda Accord
All Vehicles
1) Ford F150
2) Chevrolet Silverado
3) Ram
4) Toyota Camry
5) Toyota Corolla
***Explain why foreign cars dominate the car list while American trucks are still more popular than any and all cars in America.
Chevy’s Response
• After sales of GM vehicles plummeted and
when the U.S Government bailed out the
company, GM began developing more fuel
efficient cars and trucks in order compete with
foreign automakers such as Toyota and Honda.
• Chevy’s landmark response…
Chevrolet Assembly Plants, 1955
Fig. 11-13a: In 1955, GM assembled identical Chevrolets at ten final assembly
plants located near major population centers.
Chevrolet Assembly Plants, 2003
Fig. 11-13b: In 2003, GM was producing a wider variety of vehicles, and production of
various models was spread through the middle of the country.
Chevrolet Plant Closures
Plant closures for Chevy in the past seven years…
1) Pontiac, Michigan
2) Wilmington, Delaware
3) Grand Rapids, Michigan
4) Indianapolis, Indiana
5) Mansfield, Ohio
If you were the CEO for GM’s Chevrolet division, what
recommendations would you make to increase sales?
Top Automobile Producers of the
World
1)
China
2)
European Union (France, UK, Germany, Italy)
3)
United States
4)
Japan
5)
Germany
6)
South Korea
7)
India
*U.S. auto exports go to…
Mexico and Canada (50%), others include China, Saudi Arabia, S. Korea, Japan
•
•
•
Mercedes Benz and BMW have and will continue to relocate production in the United States
to the South. Why?
Ford exports more SUVs than any other vehicle
Fiat/Chrysler exports more Jeeps than any other vehicle
Time-Space
Compression
Through improvements
in transportation and
communications
technologies, many
places in the world
are more connected
than ever before.
Time-Space Compression
•
Just-in-time delivery (Ex. Toyota’s Kanban Method)
rather than keeping a large inventory of components or products, companies keep
just what they need for short-term production and new parts are shipped quickly
when needed.
•
Global division of labor
corporations can draw from labor around the globe for different components of
production.
New Influences on the
Geography of Manufacturing
• Transportation on industrial location
– Development of infrastructure: containers, refrigeration
– Intermodal connections
• Regional and global trade agreements
– NAFTA, EU
– WTO: ~150 countries, promotes free trade to eliminate
quotas
• Proximity to Energy sources in industrial location less
important
– Pipelines and tankers deliver fuel to far away places
– 2.5 million miles of pipelines in NA
2014
2014
Millions of barrels per day-World’s Leading Oil Producers
Data: US Energy Information Administration - crude oil, lease condensate, natural gas plant liquids, and refinery
processing gain
U.S.
12.5
Saudi Arabia
11.6
Russia
10.8
China
4.4
Canada
4.3
UAE
3.5
Iran
3.4
Iraq
3.3
Mexico
2.8
Kuwait
2.8
Key Question:
Where are the Major
Industrial Belts in the
World Today and Why?
Deindustrialization –
a process by which companies move industrial jobs to other
regions with cheaper labor, leaving the newly deindustrialized
region to switch to a service economy and work through a
period of high unemployment.
The former Gautier rolling mills
of Bethlehem Steel Corp. in
Johnstown, PA
Abandoned street in Liverpool,
England, where the population
has decreased by one-third since
deindustrialization
Newly Industrialized
• East Asia
• South East Asia
– Producing small consumer electronics and other small
consumer items (toys, tools, etc.)
Also known as the Pacific Rim.
Newly Industrialized
China – major industrial growth after 1950
1. Industrialization in the 1960s was state-planned:
-Northeast district
-Shanghai and Chang district
2. Today, industrialization is spurred by companies that move
production (not the whole company) to
-take advantage of Chinese labor
-special economic zones (SEZs).
ex: Shenzhen
As China’s economy
continues to grow, old
neighborhoods (right)
are destroyed to make
room for new buildings
(below).
Beijing, China
Newly Industrialized
East and Southeast Asia
1. Four Tigers
South Korea
Hong Kong
Tiawan
Singapore
A map showing the Four Asian Tigers
Hong Kong South Korea
Singapore Taiwan
Tertiary-Service Industries
• Tomorrow…
Key Question:
What is the Service Economy,
and Where are
Services Concentrated?
Service Economy
Service Industry – Tertiary
1. Economic activity associated with the provision
of services
– such as transportation, banking, retailing,
education, and routine office-based jobs.
2. As services become more developed specific
divisions are used:
ex: Quaternary – exchange of
information…ex?
Quinary – complex decision making…ex?
Service Economy
Postindustrial:
a society in which an economic transition has
occurred from a manufacturing based
economy to a service based economy
Examples:
United States, Canada, Japan, and Western Europe
Geographical Dimensions
of the Service Economy
New Influences on Location:
- Information technologies
- Less tied to energy sources
- Market accessibility is more relevant for some
and less relevant for others because of
telecommunications
- Presence of Multinational Corporations
Geographical Dimensions
of the Service Economy
Sunbelt: southern region of the US stretching
from the southeast to the southwest
- secondary industrial regions moving into Atlanta, Phoenix
- high-tech industry
Wal-Mart
Requires producers of goods to locate offices in the
Bentonville, Arkansas (Wal-Mart’s headquarters) area in
order to negotiate deals with Wal-Mart.
Proctor & Gamble
put their office in
nearby Fayetteville,
Arkansas.
How does the
presence of these
companies in the
region change the
region’s economy
and its cultural
landscape?
Nike
Headquartered in Beaverton, Oregon, Nike has never
produced a shoe in Oregon. Beginning in the 1960s, Nike
contracted with an Asian firm to produce its shoes.
Skopje, Macedonia
The swoosh is
ubiquitous, but
where is the shoe
produced?
Nike has a global
network of
international
manufacturing and
sales.
Modern Production
Outsourcing –
moving individual steps in the
production process (of a good
or a service) to a supplier, who
focuses their production and
offers a cost savings.
Offshore –
Outsourced work that is
located outside of the country.
High-Technology Corridors
• An area designated by local or state government
to benefit from lower taxes and high-technology
infrastructure with the goal of providing hightechnology jobs to the local population.
eg. Silicon Valley, California
• Technopole – an area planned for high
technology where agglomeration built on a
synergy among technological companies occurs.
eg. Route 128 corridor in Boston
Plano-Richardson, Texas
Telecom Corridor is just north of Dallas