Industry: Part IAPHG Copeland

Where did the Industrial Revolution begin, and

How did it Diffuse?

Key Question:

Industrial Revolution:a series of inventions that brought new uses to known energy sources, new machines to improve efficiencies and enable other new inventions.

eg. steam engineiron smeltingwater pump

Beginning of Industrial Revolution

• When and where did the industrial revolution begin?– In Great Britain in the mid to late 1700s

• Why Great Britain?– Flow of capital– Second agricultural revolution– Mercantilism and cottage industries– Resources: coal, iron ore, and water power (lumber

supply limited due to use in urban settings)

The Industrial Revolution

• European domestic markets were growing, and a labor force was lacking in England

• The steam-driven engine made up for the lack of available labor

Flow of Capital into Europe, 1775Needed flow of capital in order to fuel the industrial revolution.

• Freed from charcoal use, iron smelters could be concentrated near British coal fields

• Transportation and communications were affected

The Industrial Revolution

Textiles Production:Liverpool and Manchester

Iron Production:Birmingham

Coal Mining:Newcastle

• The first steam-powered ocean-going vessel emerged

• England held a monopoly over products in world demand and the skills to make machines to manufacture them

The Industrial Revolution

Ironbridge, EnglandWorld’s first bridge made entirely of cast iron, constructed in late 1700s.

Iron Ore to Steel

Diffusion to Mainland EuropeIn early 1800s, innovations diffused into mainland Europe.

Location criteria: proximity to coal fieldsconnection via water to a portflow of capital

Later DiffusionIn late 1800s, innovations diffused to some regions without coal.

Location criteria: access to railroadflow of capital

Diffusion of Industrial Revolution

Examine the map of diffusion of the Industrial Revolution into Europe and determine what other characteristics (aside from presence of coal) were necessary for industrialization to take hold in these regions.

How do Location Theories explain Industrial Location?

Key Question:

The Paris Basin is the Industrial base of France. Rouen (pictured here) is at the head of navigation point on the Seine River.

Location Theory

• Location Theory – predicting where business will or should be located.

Considers:- Variable costs vs. Fixed costs (List)- Profit maximization (Revenue>Costs)- Friction of distance (time & cost

increase due to increasing distance)- Transportation

Factors of Industrial Location

Raw Materials • Very few industries use raw materials • Most manufacturing is based on the further

processing and shaping of materials already treated in some fashion

• Transportation costs affect industry location

Power Supply (Energy)

• Power supplies that are immobile or of low transferability may attract activities dependent on them

• Current technology made less important

• Industries requiring large amounts of energy still situated near the power source

Labor

• Spatial variable affecting location decisions and industrial development

• 3 major traditional considerations –price, skill, and amount

• Labor Flexibility: highly educated workers able to apply themselves to a wide variety of tasks and functions

Market

• Goods are produced to supply a market demand

• Size, nature, and distribution or markets is important in industrial location decisions

• Ubiquitous industries (necessities)

Transportation

• Unifying thread of all factors of industrial location • Modern industry is immediately tied to

transportation • Use many different forms of transportation

modes locate at break-of-bulk points (seaports, airports). If a manufacturer uses multiple b-o-b points, what does this do to the price of the product for the consumer?

Alfred Weber

• Created the classical model of industrial location theory in 1909 (Industrial Triangle)

Least-Cost Theory• Explains the optimum location of a

manufacturing establishment in terms of minimizing three basic expenses – Transportation cost, labor, agglomeration

Least Cost Theory

1) Transportation: the site chosen must entail the lowest possible cost of A) moving raw materials to the factoryB) finished products to the market. This, according to Weber, is the most important.C) Is the item bulk-gaining or bulk-reducing?

Least Cost Theory

2) Labor: higher labor costs reduce profits, so a factory might do better farther from raw materials and markets if cheap labor is available-ex: China – today

Least Cost Theory

3) Agglomeration: when a large number of enterprises cluster in the same area, they can provide assistance to each other through shared talents, services, and facilities Ex. manufacturing plants need office furniture, strip malls, light industrial parks (consumer goods), heavy industrial parks (capital goods)

1. Area is uniform physically, culturally, and technologically (isotropic, plain)

2. Manufacturing involves a single product to be shipped to a single market whose location is known

3. Inputs involve raw materials from more than one known source location

5 Controlling Assumptions

4. Labor is infinitely available but immobile in location

5. Transportation routes connect origin and destination by the shortest path and directly reflect the weight of the items shipped and distance moved

5 Controlling Assumptions

Other Location ModelsHotelling’s ModelLocation of an industry cannot be understood without reference to other industries of the same kind.

Theory:

Locational interdependence:

indicates that locational decisions

are not made independently but

are influenced by the actions of others.

Other Location ModelsLosch’s ModelManufacturing plants choose locations where they can maximize profit.

Theory:

Zone of Profitability