Location and Manufacturing page 345 to 356
Location and Manufacturing pg. 345 to 356
Page 345 questions 1-4 for some forward thinking (done as a group, with us all discussing the answers together)
Have students individually read the example stories from each of the 7 location factors, and summarize for the class
Location Factors for Manufacturing: factors such as a historical head start, market, location of raw materials, power and fresh water, labour, transportation, and political factors that help explain the locations of cities and industries (7 total we will look at)
Page 345 questions 1-4 for some forward thinking (done as a group, with us all discussing the answers together)
Have students individually read the example stories from each of the 7 location factors, and summarize for the class
Location Factors for Manufacturing: factors such as a historical head start, market, location of raw materials, power and fresh water, labour, transportation, and political factors that help explain the locations of cities and industries (7 total we will look at)
- Availability of Raw Materials: raw materials are things that can be used by an industry to be processed into a more finished state (iron ore to steel, steel to automobile etc.)
- Foods and vegetables should be processed ASAP after being picked (food processing companies are close to crops)
- Difficult raw materials to travel (bulky wood etc.) likely have the industry built nearby
- Location of Markets: a company will often choose to establish itself in an area because that is where the market (or customers) are
- Reduces delivery costs, delivery time is minimal etc.
- Some location factors (availability of raw materials) might trump this factor
- Availability of Fresh Water and Power: water can be used for things like cooling and cleaning purposes, as well as a means to produce either hydro-electrical or thermal-electrical power
- Production of aluminum requires huge amounts of electrical energy, so aluminum processing plants are built exclusively next to areas where electricity is readily available and cheap
- Labour Supply: availability of workers or labour force (total number of people working and looking for work in an rea)
- Due to NAFTA, Canada can’t complete with Mexico and some industries in the US, and therefore doesn’t utilize low-cost labour
- Canadian countries are more likely to need workers with advanced skills, and therefore are more likely to locate in areas near universities, colleges, and apprenticeship programs
- Transportation: fast and efficient transportation is necessary for a company (raw materials to company, processed goods to customers etc.)
- Some important transportation options that need to be considered are: conventional road, railway, ship/freighter, airplane etc.
- Political Factors: decisions the government can make or laws that can be enforced to promote and attract new businesses (or that can drive businesses away) (can be direct or indirect)
- Direct: decisions the government directly makes to encourage a company to locate to their jurisdiction
- Offer reduced taxes for a number of years, provide land for a new factory etc.
- Indirect: government decisions that affect or encourage a company to locate to their jurisdiction, that weren’t initially intended for that
- Building a new highway (helps transport new raw materials or finished products) etc.
- Direct: decisions the government directly makes to encourage a company to locate to their jurisdiction
- Circumstance: people (or companies) seeing a need or a potential for growth in an area, and seizing the opportunity to build up on it
- Entrepreneur: person who takes a risk by setting up a business in order to make a profit
- After a company initially begins, there will likely be growth and expansion as it gets larger, which will affect the surrounding area as well
- Branch Plants: relatively small, independent factories that were designed to meet the needs of the Canadian market (from the US)
- Examples are Ford, General Electric, and IBM
- Tariff: tax charged on goods imported to Canada in order to protect Canadian industries