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[Intro] What and where is the Ford Assembly Plant?
A manufacturing industry that produces automobiles in Wayne, Michigan
→ It is an area w/ long history of manufacturing, with a highly skilled workforce, abundant natural resources, and well-developed transportation infrastructure.
What are the inputs of the Ford Assembly Plant?
1) Raw materials - steel, aluminium, & plastic
2) Auto parts - engines & electrical systems
3) Energy supply - electricity, natural gas, & other fuels to power manufacturing process
What are the processes of the Ford Assembly Plant?
1) Stamping
2) Welding
3) Painting
4) Final assembly
What are the outputs of the Ford Assembly Plant?
Main: automobiles
2) By-products
3) Waste materials (scrap metals, wastewater)
[P1 - Educated labour pool] - Why does this influence their decision to locate here?
P: There are many colleges & universities nearby in Detroit, creating a skilled & educated labour pool
E: An example is Wayne State University, which provides engineering courses - equipping skills to work in Ford Assembly Plant
E: This provides a steady supply of workers to be recruited to assemble vehicle parts, operate machinery etc.
[P2 - Raw materials] - Why does this influence their decision to locate here?
P: The Ford Assembly Plant receives raw materials from over 2600 Michigan suppliers, (e.g. steel, aluminium, automotive parts)
E: An example is Wescast Industries, which supplies exhaust manifolds for Ford’s vehicles
E: Proximity to these suppliers reduce transportation costs & bulky so easier to deliver back to factory
[P3 - Markets] - Why does this influence their decision to locate here?
P: The Detroit area is a significant market due to its large population & financial stability, where Ford can sell its cars via dealerships
E: 4.34 million people who have an median household income of ~USD 57,000
→ large clientele capable of affording & high demand for cars
E: Market’s proximity to the factory reduces transportation costs & accessible routes (e.g. highways)
→ quicker delivery to consumers