Industry and Services March 2014 | Page 12

How has industrial production changeD?

Andrea Horcasitas

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Following production around the globe:

The manufacturing boom of the twentieth century can be traced in part to early innovations in the production process. Perhaps the most significant of these innovations was the mass-production assembly line pioneered by Henry Ford.

Commercial production of television sets began after World War II, with firms from Europe, Asia and North America involded in production. The television production industry has three key elements: reserach and design; manufacture of components; and assembly.

Labor is concentrated in the periphery and semi-periphery to take advantage of the lower labor costs whereas reserach and development is located in the core.

When the world was less interconnected, most good were produced not just close to raw materials but close to the point of consumption; now, there's no need for that.

China and other lower wage countries are major recipients of industrial work that is outsourced or moved offshore.

New influences of the geography of manufacturing:

Transportation: Relatively inexpensive transportation is key to the mass production that exists today. Efficient transportation systems enable manufacturers to purchase raw materials from distant places and to distribute finished products around the globe. A major focus goes to improving intermodal connections (places where to or more modes of transportation meet). The shipped goods could not be supported without the container system.

Regulatory Circumstances: Regional trade organizations such as NAFTA and EU have trade agreements that influence where imported goods are produced. Similarly, governments have individual agreements with each other about production and imports, and most governments are part of the World Trade Organization (WTO). Regulations at the state and local scales matter as well.

Energy: The role of energy supply as a factor in industrial location decisions changed over time. At the start of the Industrial Revolution manufacturing plants were often established on or near coal fields; today major industrial complexes are not confined to areas near oil fields. Instead, a huge system of pipelines and tankers delivers oil and gas.