7.2 Industries and Manufacturing

Industries and manufacturing are the backbone of economic geography. From primary sectors like mining to high-tech quaternary industries, location factors like raw materials and labor shape where businesses set up shop. Theories like Weber's and product life cycles help explain these patterns.

The industrial landscape is always changing. The Industrial Revolution kicked things off, but now we're seeing new trends like technopoles and flexible manufacturing. Governments play a big role too, using policies and incentives to attract industries and boost development in certain areas.

Industry Classification

Sector-Based Categorization and Location Factors

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• Industries categorized into primary, secondary, tertiary, quaternary, and quinary sectors based on economic activities and technological advancement
• Location factors for industries include
  • Proximity to raw materials
  • Access to transportation networks
  • Availability of labor
  • Energy resources
  • Market demand
• Weber's theory of industrial location emphasizes
  • Transportation costs
  • Labor costs
  • Agglomeration economies
• Industrial inertia explains industry persistence in original locations despite changing economic conditions
• Footloose industries less dependent on specific location factors due to technological advancements (software development)

Industrial Location Theories and Strategic Approaches

• Product life cycle model describes changing locational requirements as products move through development stages
• Special economic zones and industrial clusters concentrate industrial activities and promote economic growth
  • Examples: Shenzhen Special Economic Zone (China), Silicon Valley (USA)
• Spatial division of labor theory explains distribution of production stages across locations based on comparative advantages
• Global production networks reshape industrial landscapes
  • Develop specialized industrial districts
  • Create offshore manufacturing hubs (electronics manufacturing in Southeast Asia)

Industrial Region Evolution

Historical Industrial Development

• Industrial Revolution in 18th century Britain marked transition from agrarian to industrial economies
• Formation of early industrial regions (textile mills in Manchester, England)
• Rust Belt in United States exemplifies rise and decline of traditional manufacturing regions
• Deindustrialization concept illustrated by Rust Belt's transformation
• Historical patterns of colonialism and resource extraction influenced industrial development in developing countries (mining industries in Africa)

Emergence of New Industrial Spaces

• Technopoles and edge cities reflect shift towards high-tech and service-oriented industries
  • Examples: Research Triangle Park (North Carolina), Bangalore (India)
• Flexible specialization describes shift from mass production to adaptable manufacturing systems
• Influences spatial organization of industries (modular manufacturing in automotive industry)
• Emergence of new industrial spaces in developing countries
  • Special Economic Zones in China
  • Technology hubs in emerging economies (Cyberjaya in Malaysia)

Government Role in Industry

Industrial Policies and Incentives

• Industrial policies promote domestic manufacturing and economic growth
  • Import substitution
  • Export-oriented industrialization
• Government incentives attract industries to specific locations
  • Tax breaks
  • Subsidies
  • Infrastructure development
• Environmental regulations and zoning laws influence spatial distribution and operational practices of industries
• National innovation systems supported by government investments in research and development
  • Contribute to creation of competitive industrial clusters
  • Foster technological advancements (government-funded research institutes)

Regional Development and Trade Policies

• Regional development policies stimulate industrial growth in underdeveloped areas
  • Growth pole strategies
  • Reduce regional economic disparities
• Trade agreements and economic unions impact flow of goods, services, and capital
  • Shape global industrial landscape (NAFTA, European Union)
• Government responses to economic crises influence survival and evolution of industrial sectors
  • Bailouts
  • Restructuring programs (automotive industry bailouts during 2008 financial crisis)

Globalization's Impact on Manufacturing

Global Value Chains and Production Relocation

• Globalization facilitates rise of transnational corporations
• Fragmentation of production processes across multiple countries leads to global value chains
• Offshoring and outsourcing practices result in relocation of manufacturing activities
  • From developed to developing countries
  • Alters global industrial geographies (textile manufacturing shift to Bangladesh)
• Time-space compression enabled by advancements in transportation and communication technologies
  • Redefines spatial relationships in global manufacturing networks
• Just-in-time production systems and lean manufacturing practices influence spatial organization of industries
  • Emphasize efficiency and flexibility in supply chains (automotive industry's global supply networks)

Emerging Trends and Technological Advancements

• Global cities emerge as command and control centers for multinational corporations
  • Reshapes geography of industrial management and decision-making (New York, London, Tokyo)
• Economic upgrading and industrial upgrading processes in developing countries
  • Reflect dynamic nature of global manufacturing landscapes
  • Illustrate changing power relations in global economy
• Rise of additive manufacturing (3D printing) challenges traditional notions of industrial location
• Advanced manufacturing technologies impact scale economies
  • Reshoring of some manufacturing activities to developed countries
  • Development of smart factories and Industry 4.0 initiatives