Types of Manufacturing

• Manufacturing businesses can be classified based on the process.

1. Labor intensive: requires a lot of person hours to produce the product.

Ex. Jewelry making, crafts

2. Capital intensive: requires a lot of expensive equipment to make the product.

Ex. Automotive industry

• Manufacturing businesses can be classified based on the output.  

1. Heavy industry: produces big expensive products for other industry.

Ex. Ship yard, tractor production, helicopters

2. Light Industry: produces smaller, cheaper products for consumers use.

Ex. Pop industry, toys, clothing

a) Making water turbines? _______________

b) Assembling televisions? _______________

c) Shirt manufacturing? _______________

d) Ship building? _______________

Classify the following as labour or capital intensive and light or heavy industry.

Pg. 218Figure 13.2

Case Study

Manufacturing Wrigley’s Gum

( handout )

Factors Affecting Industry Location

Land • Must have a good price, level area, good drainages, dense well-settled soil, etc.

Energy - not as important a factor today due to our ability to transport power long distances. Important if company can produce their own or buy cheap.

Human-Based Cost Factors1. Market Oriented Industry If weight of end product is greaterthan the input resources it is locatednear the market.

2. Resource Oriented Industry If weight of end product is less than the input resources it is located near the resource.

The purpose of this decision is to reduce transportation costs.

3. Agglomeration Tendency The tendency for factories producing related products to

locate close to each other for mutual benefit.

• Ex. Car factory & tire factory. How does each benefit by being located close to each other?

• 1. Market / Supply is close by.• 2. Transportation costs are reduced.

4. Industrial

Parks

Industrial parks are attractive for manufacturing businesses because of:

• Existing infrastructure of roads, on ramps and off ramps to highways, large lots, sewer, ample electricity etc.

• Close location to related industries.

• Pool of skilled workers available in urban areas.

5. Labor force characteristics that attract business…

Wages: lower wages are better.

Training: highly skilled / educated people are better.

Benefits: lower costs of employment insurance, pensions, etc. are better.

Availability: high unemployment rate might attract business…large available labor pool.

Government Influences1. Transportation subsidies

– Subsidies allow businesses to locate farther from the resource and encourage industry in rural areas.

Examples: • ice breakers in Botwood; • roads in Labrador; • cost of coastal transportation in Labrador; • cost of crossing the Gulf.

2. Tax breaks

– Provinces like NL have attempted to attract business by offering tax breaks. 

– The company obtains a financial break while the province gets the advantage of putting people to work.

• The highly industrialized areas on the earth's surface are concentrated in 4 definite regions:

• North America, Western Europe, Japan, and Australia

Pg. 223 fig. 13.6

NorthAmerica

Western Europe

Japan

Australia

Complete # 14, 15 A & B, 16, 17 on pages 226 – 227. # 14

# 16

# 17

Human factors are sometimes more important – if you need:* Skilled labour * Cheap labour * Government subsidies etc.

Physical factors are sometimes more important – if you need:* Raw materials * Suitable land * Cheap energy