Industry and Urban Life

Where Industry belongs

• For every decision – Site and Situation have impact on the

decision process

• What is Site and Situation?? (again)

Weber suggested that manufacturing firms would locate in response to three factors:

• Transport cost

• Labor cost

• Agglomeration economies – Industrial firms can lower its total cost of

production by agglomeration themselves at the same locality gaining external economies

– Agglomeration – collecting together

• Situation Factors – involve transporting materials to and from a factory. A firm seeks a location that minimizes the cost of transporting inputs to the factory and finished goods to the consumer

Situation Factors

Situation Factors

• Transportation Situations– Farther something is transported, the higher the

cost– If cost of transporting product exceeds cost of

transporting inputs – build plant closer to consumer or market

– If cost of transporting inputs exceeds cost of transporting product – build plant closer to inputs

• Inputs – resources from the physical environment or parts or materials made by other companies

• Bulk-reducing industry – economic activity in which the final product weighs less than its inputs

• Bulk-gaining industry – industry in which the final product weighs more or comprises a greater volume than the inputs

Situation FactorsProximity to Inputs

Fabricated Metals and Machinery• Brings together metals and other previously

manufactured parts (inputs) and transforms them into a more complex product– Televisions, refrigerators, and air conditioners

• Fabrication includes numerous tasks– Bending, forging, stamping, forming, welding,

bonding, and fastening

• Steel fabricators located near markets– Larger volume than individual parts and metals – cost

of shipping final product usually most critical factor

Situation FactorsProximity to Markets

Fabricated Metals and Machinery• Motor vehicles largest sales of fabricated metals

and machinery– About 60 final assembly plants and parts from several

thousand other plants– Final assembly plants located in “auto alley”

• Corridor between Michigan and Alabama – interstates• Minimizing transportation to market is critical factor

– Distribution of assembly plants has changed• Historically, North America divided into regions with

assembly plant in or near large metropolitan area• Recently, assembly plants placed in interior because of the

change in market (diversity of products – variety of models)

Situation FactorsProximity to Markets

Motor Vehicle Parts Plants

Fig. 11-13: U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-owned plants tend to be located further south, where labor unions are weaker.

Chevrolet Assembly

Plants, 2007

Fig. 11-12b: In 2007, GM was producing a wider variety of vehicles, and production of various models was spread through the interior of the country.

• Site Factors – result from the unique characteristics of location. Land, labor, and capital are three traditional production factors that may vary among locations– Costs varies both within countries and between regions– Most important factor at global scale is labor

Site Factors

Site FactorsLabor

• Labor-intensive Industry – industry in which wages and other compensation paid to employees constitute a high percentage of expenses

• Capital-intensive Industry – industry in which wages and other compensation paid to employees constitute a low percentage of expenses– Labor-intensive industry is not the same as high-wage

industry

Situation FactorsTransportation Choices

• Inputs transported via ship, rail, truck, or air• Cheapest alternative changes with distance

– Farther good is transported, the lower the cost per kilometer (or mile)

• Must pay workers to load goods on/off vehicles

• Trucks most often used for short-distance delivery

• Trains used for longer distances

• Ships best for very long distances – lower cost

• Air most expensive – unless speedy delivery

• Break-Of-Bulk Point – location where transfer among transportation modes is possible– Seaports, airports, and rail yards

Transportation Choices

Trucks

• Highly mobile….can go almost anywhere

• Easily delayed by weather

• Traffic delays

• Environmental problems is their use of fossil fuels

• High maintenance costs

Trains

• Most efficient and most cost effective

• Can haul large amounts long distances

• Uses 1/10th energy

• Large factories have tracks leading right to their property

• Don’t go everywhere

• Break-of-bulk points required

• Can not cross oceans

Airplanes

• Fastest

• Flexibility of routes

• Used a lot for produce

• Can cross oceans

• Break-of-bulk points required

• Expensive

• Not very fuel efficient

• Weather can cause delays

Ships

• Most energy efficient

• Cost is lowest per distance traveled

• Hauls everything

• Break-of-bulk points required

• Only travel on water ways

• Can be slowed by weather

core periphery model

core periphery model

• The countries of the world can be divided into two major world regions – -the 'core' and the 'periphery.' – The core includes major world powers and the

countries that contain much of the wealth of the planet

core periphery model

Chapter 13

Urban patterns

Central Place Theory

• Central Place – market center for the exchange of goods and services by people attracted from the surrounding area– Centrally located to maximize accessibility from the

surrounding region• Central Place Theory – explains how services are

distributed and why a regular pattern of settlement exists– First proposed by Walter Christaller

• Assumptions set by Christaller– Humans will always purchase goods from the closest

place that offers the good– Whenever demand for a certain good is high, it will

be offered in close proximity to the population

Central Place Theory

• Market Area (Hinterland) – area surrounding a service from which customers are attracted– Closer to the center of circle people will purchase service– Closer to the periphery of the circle people are more likely to

obtain services from other nodal regions

• Central Place Theory needs to use geometric shape without gaps or overlaps– Hexagon is best shape used around settlements to indicate

market areas

Central Place TheoryMarket Area of a Service

• Two important pieces of information needed to determine the extent of a market area– Range and Threshold

• Range of Service– Range – is the maximum distance people are willing to travel

to use a service• Range is the radius of the circle drawn for service’s market area• Maximum distance MOST of customers are willing to travel – typically

two-thirds to three-fourths of their customers

– People go only short distance for everyday consumer services• Groceries, laundromats, video rentals

– People go longer distances for more specialized services• Concerts, professional sports

– Range modified in terms of time, rather than distance

Central Place TheorySize of Market Area

• Threshold of a Service– Threshold – minimum number of people needed to

support the service• Minimum number of customers needed to generate profit

– Potential customers are counted depending on product• Convenience stores and fast food appeal to nearly everyone

• Other goods and services appeal to different groups

Central Place TheorySize of Market Area

Optimal Location (for Pizza-Delivery Service)

Fig. 12-6: The optimal location for a pizza delivery shop with seven potential customers in a linear settlement (top) and with 99 families in apartment buildings (bottom).

Supermarket & Convenience Store Market Areas

Fig. 12-8: Market area, range, and threshold for Kroger supermarkets (left) and UDF convenience stores in Dayton, Ohio. Supermarkets have much larger areas and ranges than convenience stores.

Hierarchy of cities

Hierarchy of cities(smallest to largest)

• Hamlet

• Village

• Town

• City

• Metropolis

• Megalopolis

• Three World cities

• New York

• London

• Tokyo

Primate cities

• Rank-size rule: second largest city should be ½ the largest and third largest should be 1/3 the largest

• Primate City – urban area with more than twice that of any other urban area– Not every country has a primate city like usa

Urbanization

• Urbanization – process by which the population of cities grows– Two dimensions of study

Increasing Percentage of People in Cities• Large percentage of people living in urban areas is a

measure of a country’s level of development– MDCs – 3/4 of people live in urban areas

• USA is 98% urbanized

– LDCs – 2/5 of people live in urban areas• Exception is Latin America (comparable to MDCs)

Urbanization

Urbanization

• Urban growth consequence of changes in economic structure over past two centuries– Industrial Revolution in the nineteenth century

• LDCs have more of the very large urban settlements– Eight of the ten most populous cities are in LDCs

Increasing Number of People in Cities• Reasons for rapid growth in LDCs

– Migration from countryside is half of the increase in urban population

– Natural increase rates is other half of increase in urban population

Urbanization

Social Differences Between Urban and Rural Settlements• Louis Wirth defined a city as permanent settlement with

characteristics of large size, high population density, and socially heterogeneous people

Defining Urban Settlements

Defining Urban Settlements

• Large Size – Different social arrangements exist– Living in urban settlement, you know only small

percentage of residents (most in their specific roles)

• High Density – Produces social consequences– Specialization required because people being supported in

small area– Encourages people to compete for survival in limited space

• Social Heterogeneity – larger settlement = more diversity– Person in urban settlement has greater freedom than rural– Even with freedom, people feel lonely and isolated

Percent Urban Population

Fig. 13-1: Percent of the population living in urban areas is usually higher in MDCs than in LDCs.

Urban models

• Created by Ernest Burgess (1923)• City grows outward from a central area in a series of

concentric rings – rings based on functions• First ring - central business district (CBD)

– Stagnation/deterioration – high-density, low-income housing

• Second ring – the zone in transition– Contains industry and poorer-quality housing

• Third ring – zone of working-class homes– Closer spaced, but adequate homes

• Fourth ring – has newer and more spacious houses for middle-class families

• Fifth ring – suburban ring – mainly for commuters– Beyond the continuous built-up area of the city

Concentric Zone Model

Concentric Zone Model

Fig. 13-5: In the concentric zone model, a city grows in a series of rings surrounding the CBD.

• Developed by Homer Hoyt (1939)• The city develops in a series of sectors, not

rings– Focuses on transportation arteries

• Certain areas of a city are more attractive for various activities– Because of environmental reasons – or just

chance• As city grows, activities expand outward in a

wedge (sector) from the center

Sector Model

Sector Model

• District with high-class housing is established, when growth occurs, new housing built on outer edge

• Housing, industrial, and retail activities develop in sectors, usually along good transportation lines

• Filtering down process – as older areas are abandoned by higher-income people, lower-income people occupy the least-desirable vacated areas

Sector Model

Fig. 13-6: In the sector model, a city grows in a series of wedges or corridors extending out from the CBD.

• Created by C.D. Harris and E.L. Ullman (1945)

• City is a complex structure that includes more than one center around which activities revolve–Several urban regions have their own

nuclei• Nodes include a port, neighborhood

business center, university, airport, and park (each with locational requirements)

Multiple Nuclei Model

Multiple Nuclei Model

• Some activities are attracted to particular nodes, whereas others try to avoid them

• Model based on land use pattern not regularly structured, but separately expanding clusters of contrasting activities

• Incompatible land-use activities will avoid clustering in the same locations

• Heavy industry and high-class housing rarely exist in the same neighborhood

Multiple Nuclei Model

Fig. 13-7: The multiple nuclei model views a city as a collection of individual centers, around which different people and activities cluster.

• Latin American city – wealthy push out from the center in a well-defined elite residential sector– Elite sector forms on either side of a narrow spine

that contains offices, shops, and amenities attractive to wealthy people, such as restaurants, theaters, parks, and zoos

– Wealthy also attracted to center and spine, because services such as water and electricity are more readily available and reliable

– High income groups clustered near the center because of greater access to services (electricity and sewer)

Latin American City Model

Latin American City

Model

Fig. 13-15: In many Latin American cities, the wealthy live in the inner city and in a sector extending along a commercial spine.

Inner-City Social Problems

• Culture of Poverty – residents live in a culture of poverty– Unwed mothers give birth to 2/3 of babies in U.S. inner-city– 80% of children in inner city live with only one parent

Crime• Gangs, violence, and drugs familiar problem in inner-

city– Higher amount of arrests in higher-density areas due to selling

of items on street cornersEthnic and Racial Segregation

• Typically, African Americans and Hispanics concentrate in one or two large continuous cares of the inner-city , while whites live in the suburbs

• Family seeking new residence usually considers a handful of districts, where the residents’ social and financial characteristics match their own

Inner-City Social Problems

• As numbers of low-income residents increase in city, territory expands outward– This can shift neighborhoods from middle-class to low-income

occupants with middle-class moving farther from the center

• Filtering – process of change in the use of a house– Subdivision of houses and occupancy by lower-income– Ultimate result may be abandonment– Many low-income families have moved farther from the center

of city

• Redlining – drawing lines on a map to identify areas in which they will refuse to loan money– Is illegal, but difficult to enforce laws– Community Reinvestment Act requires U.S. banks to document

by census tract where they make loans

Process of Deterioration

• Urban Renewal – program in which cities identify blighted inner-city neighborhoods, acquire the properties from private owners, relocate the residents and businesses, clear the site, build new roads and utilities, and turn the land over to private developers or public agencies to construct new buildings or services

• Urban renewal has been criticized for destroying the social cohesion of older neighborhoods and reducing the supply of low-cost housing

Urban Renewal

Public Housing• Public housing is reserved for low-income households• Housing authority manages the building, while federal

government pays the cost of construction, maintenance, repair, and management

• Western Europe – governments typically do not own housing, but subsidize construction costs and rent

• Most high-rise public housing built in the 1950s and 1960s– Unsatisfactory environments for families with children

• Some feel high-density, low-income concentration is the problem

• Recent public housing has been primarily two or three-story apartment buildings and some “scattered-site” public housing – dispersed throughout the city

• U.S. government has stopped funding for public housing

Urban Renewal

Renovated Housing• Renovated housing is alternative to demolishing

deteriorated inner-city housing– Renovated housing attracts middle-class people

• Gentrification – process by with middle-class people move into deteriorated inner-city neighborhoods and renovate the housing– Main attractions for middle-class include larger, yet cheaper

homes, attractive architectural details, closer to working downtown, closer to cultural and recreational activities

– Ethnic patterns will be altered with gentrification– Cities encourage low-cost loans and tax breaks

• Cities try to reduce hardship on poor families forced to move– U.S. laws require they be reimbursed for moving expenses and

for rent increases over a 4-year period– Cities renovate old houses specifically for lower-income families

Urban Renewal