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Warm Up – 4/22/13 – Day 1

Chapter 12

Services

Economic Devolopment

• Primary: raw materials, agriculture, mining• Secondary: manufacturing/processing of

raw materials into products.• Tertiary: Sales and service of products.• Quaternary: processing/manipulation and

creation of data and information.

• If you are recently transitioning from a nomadic lifestyle to a settled lifestyle, what types of services do you need?

• Is location of services more specialized than location of industry or agriculture? Why?– Is this “specialization” of location changing with

globalization? What’s an example of this?

Satellite photo of the world at night – why is this image related to services?

What is a service?

• Any activity that fulfills a human want/need and returns money to the providers.

• In other words, paying for stuff that we can’t or don’t want to do for ourselves.

• Why is there a link between services and settlements?

Percent GDP from Services, 2005

Fig. 12-1: Services contribute over two-thirds of GDP in more developed countries, compared to less than one-half in less developed countries.

Key Issue One: Where did services originate?

• I. Types of services– A. Consumer services– B. Business services– C. Public services– D. Changes in number of employees

• II. Origin of services• III. Services in contemporary rural settlements

– A. Clustered rural settlements– B. Dispersed rural settlements

A. Consumer Services• Services for consumers (people who buy stuff)• 1. Retail and wholesale (11% US jobs)• Ex. clothing store or grocery store• 2. Health (10%)• Ex. Drs, nurses, etc• 3. Leisure and Hospitality Services (10%)• Ex. Restaurants and bars, hotels, etc.

Retail and Wholesale

• Old Navy, Target, HEB

• Sam’s Club

B. Business Services• Services to help businesses run (25% US jobs)• i. Financial Services• “FIRE” – finance, insurance, real estate• ii. Professional Services• Management, law, accounting, architecture, etc• iii. Transportation and Similar Services• iv. Disseminating services/information: • ranges from trucking to broadcasting

Financial services:

C. Public Services

• Services that provide safety and security• Employed by federal, state, and local

governments• Police, fire, government workers, education

(teachers) etc.

D. Employment Change in U.S.

• : Growth in employment in the U.S. since 1970 has been entirely in the tertiary sector, with the greatest increase in professional services.

Changes in Number of Employees

• All of the growth in employment in the US has been in the service sector.

• The primary and secondary sectors have declined. Why?

• technology• Within in the service sector, some jobs have

been lost in the finance and transportation services. Why?

• technology

II. Origin of Services – Early Consumer Services

• What allowed people to settle rather than continue in a nomadic lifestyle?

• Agricultural revolution (Neolithic Revolution)• What types of services would these early groups

need?• Still need basic necessities: food, shelter, clothing• First services were provision of basic necessities, as

well as religious services, specifically to bury the dead.

• http://www.youtube.com/watch?v=grbSQ6O6kbs

• Sequence? Something like this:– A funeral needs a priest, a priest needs some kind of

structure to hold ceremonies. Other structures obviously included dwellings.

– Women usually worked in the dwellings, needing some kind of tools, pots and pans (manufacturing of household objects). Women also were put in charge of educating children.

– Men required other tools for farming or hunting. These eventually evolved into a variety of other consumer services.

– As people became more settled, people became more specialized in specific tasks, such as repairing tools or training horses, and could trade these services with each other.

Early Public Services

• The early group would have some kind of political leader.

• As a settlement, the group is suddenly more vulnerable to attack, so some members became soldiers.

Early Business Services• As these settlements became more permanent, the

settlements became areas to store extra food.• As extra food became available, not all members

of the community had to grow their own food, and they could specialize in other tasks.

• Settlement became a neutral area where several groups could come together to trade goods and services.

• Some members of the group engaged in services to help facilitate these trades – record keepers, “treasurers”, etc.

III. Services in contemporary rural settlements

A. Clustered rural settlementsB. Dispersed rural settlements

Rural Settlement Patterns• Clustered vs. dispersed• Most people still live in clustered rural settlements –

usually associated with communal property• Arranged in either a circular or linear pattern.

– Many areas settled by German immigrants arranged in circular, while areas settled by French immigrants (Quebec, Lower Mississippi) arranged in long lot (linear)

• Parcels of land are divvied up among the people living in the settlement.

• Still remnants of clustered rural settlements in the modern New England landscape.

• Why characteristic in New England? What advantages does this have?

– solidarity, security• Works well with a smaller population

Growth of Rural Settlements

Fig. 12-3: The establishment of satellite settlements in a rural landscape over time is illustrated by the number of places named “Offley” in this area.

Clustered• A clustered rural settlement typically includes homes,

barns, tool sheds, and other farm structures, plus personal services, such as religious structures and schools is called a hamlet or village.

• In some places, individual farmers own or rent the land; in other places, the land is owned collectively by the settlement or by a lord.

• This pattern. . . encouraged living in a clustered rural settlement to minimize travel time to the various fields.

• Clustered rural settlements are often arranged in one of two types of patterns: circular and linear.

Rural Settlement Patterns

Fig. 12-4: Circular settlement patterns are common in Germany. Linear “long lot” patterns are often found along rivers in France, and were transferred to Québec.

Circular Kraal Villages in Southern Africa

Dispersed rural settlementsSeen in Middle Atlantic coloniesWho settled here?A more heterogeneous group from many parts

of Europe, not just EnglandDiscontinuous fields have disadvantages

–Have to move from one field to the next–More roads had to be built. Especially once

machinery became more common, easier to harvest larger plots of land.Population started to grow

Aerial photo in Iowa

• Enclosure movement: • between 1750 – 1850 the British government

consolidated individually owned strips of land surrounding a village into a single large farm, owned by an individual.

• Why?• Greater agricultural productivity• Introduction of farm machinery• Many people were moving from rural to

urban areas during the Industrial Revolution

• The process of enclosure has sometimes been accompanied by force, resistance, and bloodshed, and remains among the most controversial areas of agricultural and economic history in England.

• Marxist and Neo-Marxist historians argue that rich landowners used their control of state processes to appropriate public land for their private benefit.

• This created a landless working class that provided the labour required in the new industries developing in the North England.

• For example: "In agriculture the years between 1760 and 1820 are the years of wholesale enclosure in which, in village after village, common rights are lost“ "Enclosure (when all the sophistications are allowed for) was a plain enough case of class robbery.

• EP Thompson

• How about some quotes from Karl Marx??

• The history of all hitherto existing society is the history of class struggles

• Anyone who knows anything of history knows that great social changes are impossible without feminine upheaval. Social progress can be measured exactly by the social position of the fair sex, the ugly ones included.

• Landlords, like all other men, love to reap where they never sowed.

Key Issue Two: Why are Consumer Services Distributed in a regular pattern?

• Central place theory– Market-area of a service– Size of market area

• Market area analysis– Profitability of a location– Optimal location within a market

• Hierarchy of services and settlements– Nesting of services and settlements– Rank-size distribution of settlements– Primate City

Central place theory

• Are consumer services distributed in a regular pattern?

• Yes!• Market-area of a service: distance consumers

have to travel to purchase goods and services. (also called hinterland)

• Why a hexagon?• No gaps, no overlaps

Central Place Theory• Size of market area – need to know 2 things: range and threshold.• Range: maximum distance people are willing to travel

to use a service.• How far are you willing to travel to go to the mall?• How far are you willing to travel to go to Disney

World?• Threshold: minimum number of people needed to

support a service.• How many people have to shop at a 7-11 to keep it in

business?• How many people have to shop at a jewelry store, like

Tiffany’s, to keep it in business?

Market Areas for Stores

Fig. 12-1.1: Market areas, ranges, and thresholds for department stores in the Dayton, Ohio metropolitan area. Stores are closer together in areas with higher incomes.

Market Areas for Supermarkets

Fig. 12-8a: Market area, range, and threshold for Kroger supermarkets in Dayton, Ohio.

Marketing principle Transport principle

Optimal Location• After determining the range and threshold, a business

has to find out what location will bring in the most profits.

• Consider number of potential customers, and distance of travel.

• Geographers use the gravity model, which shows the optimal location of a service is directly related to the number people in the area and inversely related to the distance people must travel to access it;

• ie: the best location is near the most people, having to travel the shortest distance.

Optimal Location (for Pizza-Delivery Service)

Fig. 12-6: The optimal location for a pizza delivery shop with seven potential customers in a linear settlement (top) and with 99 families in apartment buildings (bottom).

Hierarchy of Services and Settlements

• Small settlements = small thresholds, short ranges, and small market areas

• Larger settlements = larger thresholds, ranges, and market areas.

• This explains why there is more variety in product in larger cities than smaller towns.

• However, neighborhoods within a larger settlement can complicate this

Nesting of services and settlements

• In MDCs, there are numerous small settlements with small thresholds and ranges, and far fewer large settlements with large thresholds and ranges.

• In LDCs, there tend to be fewer large settlements (of at least 1,000,000) but the large settlements in LDCs tend to be larger than the large settlements in MDCs.

Central Place Theory

Fig. 12-7: Market areas are arranged into a regular pattern according to central place theory, with larger settlements fewer in number and further apart.

Supermarket & Convenience Store Market Areas

Fig. 12-8: Market area, range, and threshold for Kroger supermarkets (left) and UDF convenience stores in Dayton, Ohio. Supermarkets have much larger areas and ranges than convenience stores.

Market Areas for Convenience Stores

Fig. 12-8b: Market area, range, and threshold for UDF convenience stores in Dayton, Ohio.

Rank-size distribution

• In many MDCs settlements follow the rank-size rule– The country’s nth-largest settlement is 1/n the population

of the largest settlement.– The US follows the rank-size rule: indicates society is

sufficiently wealthy to justify the provision of goods and services to consumers throughout the country – not just in a handful of locations.

New York City, NY 8.09 million Los Angeles, CA 3.8 million Chicago, IL 3.1 million Houston, TX 2.78 million Philadelphia, PA 1.62 million Phoenix, AZ 1.54 million San Antonio, TX 1.5 million San Diego, CA 1.4 million Dallas, TX 1.32 million Detroit, MI 1 million

Rank-Size Distribution of Cities

Fig. 12-9: Cities in the U.S. closely follow the rank-size distribution, as indicated by the almost straight line on this log scale. In Romania, there are few settlements in two size ranges.

Primate city rule• Other countries follow the primate city rule in

which the largest settlement has more than twice as many people as the second largest-ranking settlement.

• In other words, if a country has a city that is far larger than any other city (more than twice as large) it follows the primate city rule.

• Many LDCs follow the primate city rule. Why?• Not enough wealth in the society to pay for a full

variety of services.