The Industrial Territory(Unit 3 – Issues and Territories)

Industrial territories …

1. Are focused around a concentration of factories.

2. Help to develop the economy ($) of a region.

3. Affect the environment of a region.

Basics

• The goods we consume come from FACTORIES that transform RAW MATERIALS (wood, iron, metals) into FINISHED GOODS.

• We call INDUSTRY the activity related to the production of goods and energy.

The Foxconn factory in Shenzen, China, makes Apple electronics like ipods, ipads, etc…

Industrialization

• INDUSTRIALIZATION is the process of expanding and intensifying industrial activities in a region.– Translation: Creating more factories or expanding

the industries in a country or region.

3 sectors (areas) of Economic Activity

1. Primary Sector:• Resource development (getting raw materials)• Ex: Fishing, Mining, Agriculture…

2. Secondary Sector:• Converting raw materials into products.• Ex: Automobile Industry, Textile Industry, etc.

3. Tertiary Sector:• Activities related to services (transport, health, etc)

The Industrial Revolution

• Began in Europe

• Late 18th Century

• New technology + New energy sources = factories, machines to build and produce!– New tech

• Steam engine• Locomotives• Looms

– New energy sources• Coal power• Electricity • Oil

• Big population + Urbanization = Lots of Workers

• Workers + Factories = PRODUCTION + GROWTH

INDUSTRIES: THE GOAL

• Industrial companies are looking for PROFITS!

• Profits = Money!

How do you make profits?

Revenue from Sales – Production Costs = Profits

The money made by

selling the products

The cost of making the products

ResearchRaw MaterialsMachineryLabourEnergyMarketingTransport

Example: An IPad – 549$PRODUCTION COSTS PAY FOR:• Cost of researching /

developing the iPad• The materials in it (plastic,

wiring, etc.)• Factory machines to make parts• Energy to run machines• Workers who assemble it• Marketing / Ads to • Transporting it to Canada

ANY MONEY LEFT OVER IS PROFIT Actual cost of materials = about 260$

So… how can you lower the production costs?

Research?Raw Materials?Machinery?Labour?Energy?Marketing?Transport?

Where Can You Save Money???

Finding a Good Location for your Industry

• Finding a good site to build your factory can save you money / PRODUCTION COSTS

• This will increase your PROFIT.

Factors in Choosing a Location

Companies may choose a location that is…

1. Close to an energy source (save $ on energy)

2. Close to Raw Materials (save $ on transportation)

3. Close to transportation (ex: near river, railway)

4. Close to markets (ex: food companies near cities)

5. Close to Specialized Labour (easier to hire workers)

The Effects of Industrialization

How do industries affect their territories?

Industries promote DEVELOPMENT

• As cities become industrialized, they become urbanized. Some improvements:– Improve economy of a region– New neighborhoods built– Roads and railways improved– Schools and medical facilities created– Cities grow (population rises)

• The positive developments in workers neighborhoods came slowly in the Industrial Revolution!

Industrialization and POLLUTION• Factories can pollute their

environments.

– Pollution in the air, ground, and in water

– In past 100 years, 30,000 toxic chemicals dumped into the Great Lakes.

– Pollution contaminates the food chain.– Leads to health problems for people near industries.

A new development: Industrial Parks• Industrial parks are

spaces designed to concentrate industries together in one place.– Allows companies to

easily do business together.

– Built near resources (power, rail, water…) to offer good LOCATION.

• These parks are built in suburbs, outside of cities.

– Industries no longer near city centers.