Transcript 3202 Unit 5-2 Manufacturing Typesx

Types of Manufacturing
•
Manufacturing businesses can be classified based on the
process.
1.
Labor intensive: requires a lot of person hours to produce
the product.
 Ex. Jewelry making, crafts
2.
Capital intensive: requires a lot of expensive equipment to
make the product.
 Ex. Automotive industry
•
Manufacturing businesses can be classified based on the
output.
1. Heavy industry: produces big expensive products for other
industry.
 Ex. Ship yard, tractor production,
helicopters
2. Light Industry: produces smaller,
cheaper products for consumers use.
 Ex. Pop industry, toys, clothing
Classify the following as labour or capital intensive and
light or heavy industry.
a) Making water
turbines?
_______________
b) Assembling
televisions?
_______________
c) Shirt
manufacturing?
_______________
d) Ship building?
_______________
Pg. 218
Figure 13.2
Case Study
Manufacturing Wrigley’s Gum
( handout )
Factors Affecting Industry Location
Land
• Must have a good
price, level area, good
drainages, dense
well-settled soil, etc.
Energy
- not as important a factor
today due to our ability to
transport power long
distances. Important if
company can produce
their own or buy cheap.
Human-Based Cost Factors
1. Market Oriented Industry
If weight of end product is greater
than the input resources it is located
near the market.
2. Resource Oriented Industry
If weight of end product is less than the input resources it is
located near the resource.
The purpose of this
decision is to reduce
transportation costs.
3. 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?
1. Market / Supply is close by.
2. Transportation costs are reduced.
4. Industrial
Parks
Industrial parks are attractive for manufacturing businesses
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 available in urban areas.
5. Labor force characteristics that attract
business…

Wages: lower wages are better.

Training: highly skilled / educated 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 and encourage industry in rural areas.
Examples:
• ice breakers in Botwood;
• roads in Labrador;
• cost of coastal transportation in Labrador;
• cost of crossing the Gulf.
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.
•
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
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fig. 13.6
Complete # 14, 15 A & B, 16, 17 on pages 226 – 227.
# 14
# 16
# 17
Human factors are sometimes more important – if you need:
* Skilled labour * Cheap labour * Government subsidies etc.
Physical factors are sometimes more important – if you need:
* Raw materials * Suitable land * Cheap energy