Industry: Part II

1. Industry: Part II Industrialization and Chevrolet (General Motors)

2. Major Industrial Regions of the World before and after 1950

3. Industrialization Through WWI • The four primary industrial regions: 1) Western & Central Europe 2) Eastern North America 3) Russia & Ukraine 4) Eastern Asia

4. 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

5. 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

6. Major Manufacturing Regions of Russia -Many resources throughout the vast expanse of land -Volga River provided an energy resource and transportation through canals -

7. 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?

8. 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.

9. Key Question: How has Industrial Production Changed?

10. 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 worldand only producing what is desired by consumers.

11. Planned Obsolescence • What is planned obsolescence? • Who is guilty?

12. 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? • CarsAll Vehicles 1) Toyota Camry 1) Ford F150 2) Toyota Corolla 2) Chevrolet Silverado 3) Nissan Altima 3) Ram 4) Honda Civic 4) Toyota Camry 5) Honda Accord 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.

14. 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…

15. Chevrolet Assembly Plants, 1955 Fig. 11-13a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.

16. 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.

17. Chevrolet Plant Closures Plant closures for Chevy in the past seven years… • Pontiac, Michigan • Wilmington, Delaware • Grand Rapids, Michigan • Indianapolis, Indiana • Mansfield, Ohio If you were the CEO for GM’s Chevrolet division, what recommendations would you make to increase sales?

18. Top Automobile Producers of the World • China • European Union (France, UK, Germany, Italy) • United States • Japan • Germany • South Korea • 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

19. Time-Space Compression Through improvements in transportation and communications technologies, many places in the world are more connected than ever before.

20. 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.

21. 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

22. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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

23. Key Question: Where are the Major Industrial Belts in the World Today and Why?

24. 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

25. 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.

26. 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

27. As China’s economy continues to grow, old neighborhoods (right) are destroyed to make room for new buildings (below). Beijing, China

28. Newly Industrialized East and Southeast Asia 1. Four Tigers South Korea Hong Kong Tiawan Singapore A map showing the Four Asian TigersHong KongSouth KoreaSingaporeTaiwan

29. Tertiary-Service Industries • Tomorrow…

30. Key Question: What is the Service Economy, and Where are Services Concentrated?

31. 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?

32. 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

33. 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

34. 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

35. 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?

36. 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.

37. 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.

38. 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 high-technology 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

39. Plano-Richardson, TexasTelecom Corridor is just north of Dallas