Industry: Part II

Industrialization and Chevrolet

Major Industrial Regions of the World before 1950

Industrialization Through WWI

• The four primary industrial regions:1) Western & Central Europe2) Eastern North America 3) Russia & Ukraine4) 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 described in this section of the chapter and determine whether any of the models apply to this place.

How has Industrial Production Changed?

Key Question:

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.

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 Americans are driving…1) Ford F-1502) Chevrolet Silverado3) Toyota Camry4) Honda Accord5) Ram Truck

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 ClosuresPlant closures for Chevy in the past five years…1) Pontiac, Michigan2) Wilmington, Delaware3) Grand Rapids, Michigan4) Indianapolis, Indiana5) Mansfield, Ohio

If you were the CEO for GM’s Chevrolet division, what recommendations would you make to increase sales?

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 deliveryrather 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 laborcorporations can draw from labor around the globe for different components of production.

Production of Televisions

• Three key elements in television production:– Research and design–Manufacturing components– Assembly

• Production of televisions has shifted across the world over time.

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

Where are the Major Industrial Belts in the

World Today and Why?

Key Question:

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.

Abandoned street in Liverpool, England, where the population has decreased by one-third since deindustrialization

The former Gautier rolling mills of Bethlehem Steel

Corp. in Johnstown, PA

Newly Industrialized

• East Asia• South East Asia

Also known as the Pacific Rim.

Newly IndustrializedChina – 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). What is a SEZ?

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 TigersSouth Korea-autos, electronicsHong Kong-toysTaiwan-entrepot, toys, electronicsSingapore-entrepot, busiest port in

world

Global Industrial Zones

• Areas have site situation advantages that have contributed to a country’s economic success.

• North America’s Industrial Areas– Mid-Atlantic-financial, communications and

entertainment– Mohawk Valley-steel, food processing– Western Great Lakes-motor vehicles– Southern Cali-aircraft, textiles, furniture– Southeastern Ontario-steel production

East Asia’s Industrial Areas

• Japan-automobiles, ships, cameras, stereos and televisions

• China-low-cost labor (textiles, apparel, steel and household products)

Europe’s Industrial Areas

• United Kingdom-high-tech industries• Netherlands-machinery, metal• France-steel• Germany-chemicals, pharmaceuticals,

automobiles• Italy-processed foods, automobiles• Russia-fabrics, shipbuilding, petroleum,

natural gas, steel, chemicals