Manufacturing & Economic Production/Transition Flashcards
sectors: primary
raw materials
sectors: secondary
manufacturing
sectors: tertiary
services
sectors: quaternary
information
sectors: quinary
management
industrial revolution: why
greater access to capital and technological innovations
industrial revolution: when
late 1700s
industrial revolution: where
heart: Great Britian
manufacturing belts
extends from the Northwest coast to Iowa &from the St. Lawrence Valley to the Ohio & Missouri Rivers
New England & New York
light manufacturing New York with its large market has a huge skilled & semi skilled labor force
Philadelphia & Baltimore
heavy industry-iron ore was smelted in tidewater steel mills
interior nodes
Pittsburgh, Cleveland, Detroit, Chicago-Gary, Milwaukee, St. Louis &Cincinnati-Appalachian coal & Mesabi iron-ore autos, bulldozers, harvester, & appliances
manufacturing boom of the 20th century: why
early innovations in the production process
Henry Ford
pioneered the mass production assembly line
fordism (fordist production)
dominant mode of mass production 1945-1970
Ford’s goal
mass produce goods at a price that his workers could afford
good wages caused
people to migrate for work
machines replace
people on the assembly line
vertical intregration
a company takes control over several of the production steps involved in the creation of a product or service
a company’s supply chain or sale process
begins with the purchase of raw materials from a supplier &ends with the sale of the final product to the customer
Ford Motor Co. automobile factory: River Rouge Plant, Dearborn, MI
93 buildings, >120 miles of conveyor belt, area of 1x1.5 miles
Big 3
Ford, Chrysler, GM
crisis of fordism
the good times lasted about 20 years BUT 70s energy crisis, technology couldn’t adjust quickly, overall decline of Big 3
Post-Fordism
flexible production
Post-Fordism was during
latter third of 20th century (1970s-80s+)
during post-fordism
global economy becomes more integrated and transportation costs decrease
flexible production
firms can pick and choose among a multitude of supplier and production strategies all over the world, and then quickly shift where they manufacture their products in response to adjustments in production costs or consumer demand
flexible production designed to
respond to consumers who want the newest/best/greatest offering
flexible production enables
manufacturers to lower the cost of production by moving around the world
service industries are the
largest segment of US economy
gross domestic product
the total value of goods produced and services provided in a country during one year
deindustrialization
employment in manufacturing as a share of total employment has fallen (dramatically in the world’s most advanced economies)
the declining share of employment in manufacturing appears to mirror
a decline in the share of manufacturing value added in GDP
rise of Sun Belt: why
air conditioning, mild winters & more sun, less expensive housing in the South, market-friendly economic policies
every state in the Southeast is a
right-to-work state
manufacturing is among the
top 5 US employers
how does manufacturing contribute to exports
nearly 6 in 10 US export dollars come from manufacturing
most Americans know manufacturing jobs have declined, but
only about 1/3 know output has increased
what is crucial for the quinary sector
the internet
digital divide
discrepancy in access to IT between small, rural, & poor areas, & large, wealthy cities
1/4 of US populiation
not yet able to afford computers & have
home Internet connections
Cleveland, Ohio: Post-Civil War boom
Manufacturing Belt
Cleveland
premier center of industrialism between Buffalo & Chicago
competitive/locational advantage of Cleveland
- Northern terminus of the Ohio R.-Lake Erie Canal
- Erie Canal further east guaranteed access to eastern markets
- 1860s-1920s: diversified node of durable goods production
- What?: dairy, agriculture, coal; iron &steel….high-paying jobs
- Impact of Detroit: the epicenter of global automobile production
- Population growth
- St. Lawrence Seaway = commercial ships
- Labor unions: protected workers’ wages, jobs, & benefits
Cleveland: Mistake on the lake: 1970s-80s
“petro-shocks,” foreign competition, decrease in employment & Plant closures, rising unemployment
manufacturing
Rust Belt
Cleveland, Ohio
population declines, housing values rose, poverty rate rose
Cleveland: Recovery-from Joke to Jewel: 1990s
1980s: restructuring of U.S. economy, Reinvigorated automobile industry, steel plant, chemicals, paints, & industrial coatings
Cleveland: Industry Today
> $100 billion of Ohio’s GDP; employing >700K people; 15K manufacturing companies
Impact of Detroit
the epicenter of global automobile production
