geo

Location and Resources

  • Location: Dan Dukarni located near the Pennsylvania border close to Pittsburgh.
  • Reasons for Attraction to Pittsburgh:
    • Proximity to Water: Essential for transportation, especially historically when river transportation was economically advantageous for moving heavy materials.
    • Access to Raw Materials: Enables industries to thrive. Examples of raw materials needed include coal, minerals, and other natural resources.
    • Labor Pool: Availability of workers, particularly unskilled laborers who can perform physical tasks without the need for specialized skills.
    • Energy Supply: Initially powered by water (e.g., early textile mills), then evolved to steam power fueled by coal.
    • Railroads: Built alongside rivers and near markets to facilitate transportation of heavy goods.

Historical Context and Economic Clustering

  • Industrial Clustering:
    • Agglomeration occurs when businesses in related sectors locate near each other. Andrew Carnegie took advantage of this by establishing operations in the Mon Valley.
  • Coal Products Map:
    • Highlights the distribution of bituminous (yellow) and anthracite (green) coal deposits, particularly in Pennsylvania, explaining the rise of major steel-making cities like Pittsburgh and Baltimore.

Industrial Employment Trends

  • Peak Manufacturing Employment:
    • 1978: Manufacturing jobs peaked at approximately 20 million, which was about 30% of the workforce.
    • Current Employment: Less than 10% of workers in manufacturing due to mechanization and efficiency improvements.

Shifts to Different Manufacturing Sectors

  • First Shift: Textile industry began migrating to different regions, influenced by outsourcing.
  • Second Shift: Rise of automobile manufacturing with standardized tasks in large factories, exemplified by Detroit.
    • Henry Ford's Contribution:
    • Fordism: Refined mass production techniques; characterized by large, capital-intensive plants focused on standardized product lines (e.g., the Model T).
  • Globalization and Outsourcing:
    • Manufacturing activities shifted globally, often to locations with cheaper labor.
    • Example: Analysis of General Motors shows varying production locations across the USA, Germany, Spain, and the UK.

Efficiency and Technological Advancements

  • Productivity Metrics:
    • GM Cars Produced per Worker:
    • 1950s: 7 cars/year
    • 1990s: 13 cars/year
    • 2010s: 28 cars/year
    • Despite production increases, the demand for labor has significantly decreased due to automation and technology.

Steel Production Changes

  • Steel Production Labor Needs:
    • 1980s: Over 10 hours required for one ton of steel.
    • Current: Only 1.5 person hours required per ton, indicating drastic improvements in efficiency.
    • Despite output being higher, the workforce has decreased by about 75% since the 1970s.

Global Manufacturing Landscape

  • American Manufacturing Output:
    • Since 1970, US factories have more than doubled output while maintaining efficiency, comparable to output from China and exceeding that of Germany and Korea.

Current American Manufacturing

  • Types of Goods Still Produced in America:
    • High-end industrial products (e.g., airplanes, industrial machines, medical devices).
    • However, many traditional manufacturing jobs are leaving due to global shifts.

Economic Structure Changes

  • Tertiary Sector:*
    • Includes service jobs such as retail, hospitality, transportation, and other service-oriented roles.
    • Examples of service roles include:
      • Retail workers
      • Fast food employees (e.g., McDonald's)
      • Various clerks (hotel, bank)
  • Issues with Service Jobs:
    • Polarized market: High-paying positions often exist alongside many low-wage roles, leading to income inequality.

Quaternary Sector

  • Focus Area: Collection and processing of information, scientific research, education.
  • Jobs Included:
    • Teachers, lawyers, physicians, and those in research positions.

Silicon Valley

  • A significant hub for innovation, home to tech giants like Google and Apple.
  • Represents a shift from traditional manufacturing toward knowledge and innovation-based economy.

Conclusion on Shifts in Economic Practices

  • The US economy trajectory has moved from manufacturing to creating knowledge and innovation. Jobs in this sector, while varied and often difficult to define, include roles in technology, research, and development.

Class Activity

  • Students to analyze characteristics of China and India, focusing on the differing aspects of their economic and industrial practices.