WHY MAKE IT HERE?

Regional Planning: Unit Three Places and PerspectivesLesson Two, The Wealthiest Place

Maggie Legates, DGA June, 2011

BUSINESS AND INDUSTRIAL PLANNERS LOOK FOR A GOOD SITE

Industrial location WISH LIST: Suitable building, storage space,

parking at low cost Plenty of skilled labor, low wages and

benefits Excellent infrastructure and utilities Safety and security provided by local

police Low taxes and few restrictions

BUT SITUATION CAN BE JUST AS IMPORTANT!

How far must raw materials be moved to get to our place of business?

Are there likely to be disruptions in supply for raw materials, component parts, or packaging?

How reliable are the highways, bridges and tunnels, port facilities?

Can we get the product to market or point-of-sale “just in time”?

INDUSTRIAL LOCATION THEORY:

Max Weber, a

geographer

from Germany,

noticed that

most

successful

industrial sites

were located at

a good site

that also

balanced the

costs of

transporting

raw materials

with the costs

of getting

products to

market.

ABOUT TRANSPORTATION COSTS: LOGISTICS MATTER

Air transport is most expensive.

It is used when time is important and/or products are light and valuable.

GROUND TRANSPORT

Trucks can move goods to more places and costs are moderate. Of course, there are size and weight limits for trucks. Refrigerated trailers and other special carriers make trucks flexible.

Rail and water transport are least expensive but can be slow. Trains and barges usually carry heavy, bulky cargo.

INTERMODAL SHIPPING

Containers can be specialized for the contents and can be moved from ship to train or truck without reloading all the cargo.

WHAT IS THE RESULT? DO I SEE A PATTERN?

If one business has found a winning combination of site and situation, others may follow!

Soon clusters of producers of the same product can be found in a region.

Support industries often locate near-by, adding to the cluster.

HOW DID THIS PLAY OUT IN THE EARLY DAYS OF THE AMERICAN AUTOMOTIVE INDUSTRY?

Ford built a plants in Dearborn, Highland Park, Pontiac and other towns in Michigan.

Other automakers located near-by forming a cluster.

Parts suppliers located in Michigan, and also in Ohio, Indiana, Wisconsin and Illinois.

Detroit and Dearborn area auto plants form a

cluster

Parts suppliers and “feeder” industries

How did this affect the places in Michigan and the states surrounding the auto cluster?

•Population increased as workers were attracted to the area.•Rural places became urban. •Real estate values rose.•Agriculture was pushed out by homes and businesses as land became more valuable.•Cultural diversity rose as people moved to Michigan looking for jobs.•More and better roads were needed as car owners could drive to work.

LAND USE IS PARTLY DETERMINED BY DISTANCE FROM INDUSTRIAL CLUSTERS

Geographer Von Thunen noticed a pattern of land use in Europe during the industrial revolution.

Do you think this pattern applies in other world regions where heavy industry is present?

Heavy Industry

Light industryField crop

agriculture

Ranching and grazing

CHECK YOUR UNDERSTANDING

“Motor

City

Support industry

Agriculture

Why did the Detroit area have a good geographic situation? What factors do you think were balanced by this choice of location?

Where on this map are land prices likely to be highest? Where are they likely to be lowest?

How did the availability of automobiles affect the earning power of people in the area around Detroit?

TRANSFER YOUR LEARNING TO ANOTHER PLACE!

This map of Japan shows where most Toyota plants are in Japan. Will Von Thunen’s ideas apply on this island nation?

Where would you expect to find the factories of other auto makers?

Where would you expect to find support factories making component parts?

Where might farms or grazing be located?