unit 5: manufacturing - mr. johnston's social studies...

World Geography 3202

Unit 5: Manufacturing

Unit 5: Manufacturing Introduction

Three Sectors of the Economy

1. Primary economic activity involves the collection of raw materials from the earth. • Farming, fishing, mining, forestry are the

classic parts of the primary economy. • All involve collecting natural resources.

Unit 4

Unit 5: Manufacturing Introduction

2. Secondary economic activity involves processing or manufacturing raw materials into products for people to buy.

Unit 5: Manufacturing Introduction

• It is often referred to as the manufacturing or processing sector.

• All activities start with a raw material and convert it to a product for sale.

• This is sometimes referred to as Value Adding.

• EX: The tree would be much less expensive to buy than the lumber.

Unit 5: Manufacturing Introduction

3. Tertiary economic activity does not involve raw materials rather it involves providing service to people.

Unit 5: Manufacturing Introduction

• Often referred to as the service industry. • Nurses, doctors, lawyers, teachers,

waitresses, hairdressers, sales people all provide services for other people.

• Tourism is an important part of the tertiary sector.

Unit 5: Manufacturing Introduction

4. The quaternary sector of the economy concerns the following services: information generation, information sharing, consultation, education and research. It is sometimes incorporated into the tertiary sector.

Manufacturing Systems Model

Inputs: materials & factors that go into making a product. • Ex: raw material, power, buildings, land,

labor, decisions, capital, machinery, etc.

Manufacturing Systems Model

Manufacturing processes: those processes that change a raw material to a usable form. Three types:

1. Conditioning2. Analytical3. Synthetic

Manufacturing Systems Model

1. Conditioning: minimal change to a resource. • Example: logs into lumber; fish into

fillets

Manufacturing Systems Model

2. Analytical: resource converted to a number of different products. • Example: cow into leather, milk & cheese

Manufacturing Systems Model

3. Synthetic: several resources are combined to make one product. • Example: light bulb has glass, tungsten,

Nitrogen & aluminum.

Manufacturing Systems Model

Outputs: finished product from a manufacturing process.

• For example the output from the fish plant is fish sticks or frozen fish fillets.

Manufacturing Systems Model

Assigned Readings

• Read the introduction to Chapter 13 "Patterns in Manufacturing" on page 216

• Read "The Manufacturing Process" on pages 216-217.

Types of Manufacturing/Industry

Labor Intensive vs. Capital Intensive

• All manufacturing businesses can be classified as either requiring large quantities of labor or machinery to do the processing.

• Machinery now does much of the work formerly done by humans.

Types of Manufacturing/Industry

• Labor intensive: requires a lot of person hours to produce the product. Ex. Jewelry making

• Capital intensive: requires a lot of expensive equipment to make the product. Ex. Automotive industry

Types of Manufacturing/Industry

Heavy vs. Light Industry

• Manufacturing businesses can be classified based on the output.

• All manufacturing businesses can be classified as: • Either producing large, expensive items for

other business to use in manufacturing or transportation OR

• As producing small items for consumers to purchase directly.

Types of Manufacturing/Industry

• Heavy Industry: produces big expensive products for other industry. Ex. Ship yard, tractor production

• Light Industry: produces products for consumers. Ex. Pop industry.

Practice Classifying

• Analyze the manufacturing processes in figure 13.2 on page 218 of your text.

• Determine if each manufacturing process is “labor intensive” or “capital intensive” and if it is heavy industry or light industry.

Manufacturing Process Labor vs. Capital Heavy vs. Light

Fabricating water

turbines

Capital Heavy

Making televisions Labor Light

Making shirts Labor Light

Building ships Labor Heavy

Location of Industries

Factors Affecting Industry Location

Site/Physical Cost Factors

Three major factors of site (physical location)

1. Proximity to raw material. • Heavier & bulkier the raw material the

closer the industry will be located to reduce transportation costs.

Location of Industries

• Resource Oriented Industry • industries that are located close to the

resource because it is to heavy/bulky to transport;

• communities frequently spring up around resource industries.

• Ex: Labrador City, Churchill Falls, and Grand Falls-Windsor

Location of Industries

2. Land: price, level, good drainages, dense

well-settled soil

Location of Industries

3. Energy: Industrial users (agriculture, mining, manufacturing, and construction) consume about 37% of the total energy available.

Note: not as important a factor today due to our ability to transport power long distances.

Human-based Cost Factors

Market Oriented Industry

• Industries that are located close to the market because the product is expensive to transport.

• The Soft drink industry is a good example.

Market vs. Resource Oriented Industries

• If the product weight is greater (weight gain) than the input resources it is located near market.

• Conversely if product weight is less (weight loss) than the input resources it is located near resource.

Agglomerating Tendency

• Refers to the tendency for factories producing related products to locate close to each other for mutual benefit.

• Ex: Car factory & tire factory.

Industrial Parks

• Industrial parks provide many advantages for a business.

• Existing infrastructure of roads to highways, large lots, sewer, ample electricity, and close location to related industries.

Labor force characteristics that attract business

• Wages expected: lower wages in some developing countries like Mexico, and the Philippines attract manufacturers

Labor force characteristics that attract business

• Training: highly skilled laborers can attract businesses that require welders, mechanics, carpenters etc.

Labor force characteristics that attract business

• Benefits (EI, Pensions etc); lower costs of employment insurance, pensions , etc. can attract business just as easily as low wages.

Labor force characteristics that attract business

• Availability; a high unemployment rate might attract business, especially if large numbers of workers are required.

Government Influence

Governments affect economic activity through their influence on conditions ingeographic locations

• Transportation subsidies affect the location of industry.

• Subsidies allow businesses to locate farther from the resource.

• Subsidies allow governments to encourage industry in rural areas.

Government Influence

Examples: • Ice breakers in Botwood• Cost of coastal transportation in Labrador • Cost of crossing the Gulf

Tax breaks affect the location of Industry.

• Provinces like Newfoundland 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. EX: Call Centers

Industry Location - The Global Picture

• Look at figure 13.6 on page 223 of your text book.

• The highly industrialized areas on the earth's surface are concentrated in 4 definite regions:

North America Western Europe Japan Australia

Assigned Readings• Read "The Location of Manufacturing

Industries: Where & Why" on page 223 of your text book.

• Read "Physical cost factors" on page 224 of your text book. Read "Human-based cost factors" on pages 224-226 of your text book.

Assigned Activities• Complete questions 14-17 from pages 226-227 of

your text book.

5.4 Industry and the EnvironmentEnvironmental Threats

Industrial Waste

Industry has waste out put as well as product output. Three types of waste:

1. Green house gasses; ex. Carbon dioxide, Chlorofluorocarbons & methane. Causes global warming & associated problems.

5.4 Industry and the EnvironmentEnvironmental Threats

2. Acid Rain; ex. Sulphur & nitrogen. Decreases soil fertility, kills fish, corrodes buildings

5.4 Industry and the EnvironmentEnvironmental Threats

3. CFC’s (chlorofluorocarbons); ex. Refrigerants & sprays. Breaks down ozone which filters harmful cancer causing UV rays.

Industrial wastes are obviously mostly related to areas of heavy industry.

Prevailing winds also play a role.

The Role of GOVERNMENT and INTEREST GROUPS

• Interest groups often play the extremist. They raise valid points of concern.

• Government has the role of balancing environmental concerns & encouraging economic development.

Averting an environmental threat posed by an industry.

• It is important to note that industrialized areas as well as those areas down wind from industrialized areas are affected.

• Any solution will have to involve cooperation and consultation between different nations.

• Ex: Kyoto summit attempted to get countries to reduce their carbon dioxide emissions.

End

Solutions to solving the acid rain problem include:

• Government regulation to reduce sulphur & nitrogen emission;

• Development of sulphur filtering equipment; • Tax breaks for companies if they reduce

pollution output; • Meetings and consultation between business,

environmentalists and government to decide on a plan of action.

Activity

Assigned Readings: "Manufacturing & The Environment" pages 237-239.

Assigned Activities: Complete questions 31 & 32 p. 238

Unit 5: Assignment

Moral Issues & Industry

• Examples: child labour, safety of workers and a Company’s responsibility to be environmentally friendly.

• The question we have to keep asking ourselves is "are industries acting within the moral parameters of our society?".

Moral Issues & Industry

• In Canada and most well developed nations there are strict regulations about safety, waste emissions, age of workers, and corporate responsibility.

• In some developing nations the regulations might not be in place or they might be relaxed in the hope of stimulating business instead of inhibiting it.

5.5 Types of Tertiary Activity

Tertiary Activity • Service industry • Providing services for people • Ex. Doctor, lawyer, waitress, tourism

industry, mechanic, teacher

5.5 Types of Tertiary Activity

Private vs. Public Tertiary Activity • Private service industry is run by private

business and requires that a profit be made from the service.

• Ex: Mechanics, Lawyers, Tourism. • Public – Government Services

The four types of tertiary activity are:

1. Distributive Activities: involves the transportation and sale of all products from manufacturer to consumer.

• Ex: truck driver• Private

The four types of tertiary activity are:

2. Financial Activity: involves banks, insurance companies, etc.

• Private

The four types of tertiary activity are:

3. Personal Service: involves a wide range of services from legal services, to food services, to entertainment and counselling services.

• Private

The four types of tertiary activity are:

4. Government service: Public service industry is operated by Government and is not for profit.

• Ex: Education, health care, mail, water, sewer, roads.

• Hence the term “ public servant” • Public – “Public Service Jobs”

Assigned Readings

• Question: Why does the government provide some tertiary services?

Assigned Readings• Chapter 14, page 240 of your textbook. • "The Nature of The Service Sector" on

pages 240-241 of your textbook.