Types of Manufacturing

1

• Types of Manufacturing

2

• Manufacturing businesses can be classified based
  on the process.
• Labor intensive requires a lot of person hours
  to produce the product.
• Ex. Jewelry making, crafts
• Capital intensive requires a lot of expensive
  equipment to make the product.
• Ex. Automotive industry

3

• Manufacturing businesses can be classified based
  on the output.  
• Heavy industry produces products for other
• industry.
• Ex. Ship yard, tractor production,
• helicopters
• Light Industry produces products
• 
  
  
  
  
  
  
  
  
  for consumers use.
• Ex. Pop industry, toys, clothing

4
Classify the following as labour or capital
intensive and light or heavy industry.

• Making water turbines? _______________
• Assembling televisions? _______________
• Shirt manufacturing? _______________
• Ship building? _______________

Pg. 218 Figure 13.2
5
Case Study

• Manufacturing Wrigleys Gum
• ( handout )

6

• Factors Affecting Industry Location

7

• Land
• Must have good
• drainages, dense
• well-settled soil, etc.

• Energy
• not as important a factor today due to our
  ability to transport power long distances.
  Important if company can produce their own or buy
  cheap.

Proximity to raw material. Heavier bulkier the
raw material the closer the industry will be
located to reduce transportation costs.
8
Human-Based Cost Factors

• Market Oriented Industry
• If the weight of end product is greater
• than the input resources it is located
• near the market.
• THIS IS ALSO REFfERED TO AS A
• WEIGHT GAIN
• Resource Oriented Industry
• If the weight of end product is less
• than the input resources it is located
• near the resource.
• THIS I ALSO REFfERED TO AS WEIGHT LOSS

The purpose of this decision is to reduce
transportation costs.
9

• 3. Agglomeration Tendency
• The tendency for factories producing related
  products to locate close to each other for mutual
  benefit.
• Ex. Car factory tire factory. How does each
  benefit by being located close to each other?
• 1. Market / Supply is close by.
• 2. Transportation costs are reduced.

10

• 4. Industrial Parks

• Industrial parks are attractive for manufacturing
  businesses because of
• Existing infrastructure of roads, on ramps and
  off ramps to
• highways, large lots, sewer, ample electricity
  etc.
• Close location to related industries.
• Pool of skilled workers available in urban areas.

11

• 5. Labor force characteristics that attract
  business
• Wages lower wages are better.
• Training highly skilled / educated people are
  better.
• Benefits lower costs of employment insurance,
  pensions, etc. are better.
• Availability high unemployment rate might
  attract businesslarge available labor pool.

12
Government Influences

• Transportation subsidies
• Subsidies allow businesses to locate farther from
  the resource and encourage industry in rural
  areas.
• Examples
• ice breakers in Botwood
• roads in Labrador
• cost of coastal transportation in Labrador
• cost of crossing the Gulf.
• 2. Tax breaks
• Provinces like NL 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.

13

• The highly industrialized areas on the earth's
  surface are concentrated in 4 definite regions
• North America, Western Europe, Japan, and
  Australia

Western Europe
North America
Japan
Australia
Pg. 223 fig. 13.6
14
Complete 14, 15 A B, 16, 17 on pages 226
227.
14
15
16
17
Human factors are sometimes more important if
you need Skilled labour Cheap labour
Government subsidies etc. Physical factors are
sometimes more important if you need Raw
materials Suitable land Cheap energy