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Iron and Steel Industry
Location:
Near Forests: Charcoal was used as an energy source for heating the furnaces. Thus iron ore factories were located near forests to ensure the supply of wood.
Near Coal mines: Coal mines had the necessary labor available. Besides iron ore was found in coal seams. To get iron ore of 1 ton we needed 8-12 tons of coal were needed. Hence it was easier to transport iron ore to coal fields than coal to iron ore.
Near Coastal regions: As iron and coal were depleted the need for imported coal and iron increased. This made factories shift to newer areas in the coastal regions. The coastal factories depended on imported iron or coal and lowered the cost of transportation from factory to port.
Iron ore and coal-producing regions have a bi-directional relationship. The wagons that transported coal to iron ore regions would return empty so uneconomical use. Hence the wagons would return with the iron ore to the coal-producing regions. Thus in both these areas iron and coal industries flourished. E.g: Pittsburg-Lake Superior, Bokaro-Rourkela.
Technology:
New technologies available for steel production reduced the pull factor of coal mines.
Open hearth system: Scrap steel could be used and this reduced dependency on mines. Even natural gas could now be used as fuel.
Oxygen converter process and electric smelters used less energy and now such mini-steel plants can be located away from mines and toward cities.
Integrated Steel plants are located in Eastern India and have a high gestation period. They are integrated complexes with the entire process from raw material processing to final conversion into alloys and steel products being done. Mini Steel Plants are located near cities and they recycle waste steel to produce finished products. They avoid competition with integrated steel plants by locating away from them.
Industrial Inertia
Earlier industries were located near the coal mines but as mines depleted some have continued to remain in the same location. This is known as “Industrial inertia”.
Reasons:
- Labor is available abundantly and skilled in industrial areas. But if the industry moves to a newer location such labor might not be available.
- Rail, road, and transportation facilities toward markets and ports are well developed in industrial locations. The same facilities aren’t developed in newer locations and so it is more convenient to import raw materials and modernize operations.
- Government policy is also in favor of big industrialists as they have a large workforce. The industrialists lobby the policymakers to get suitable policies passed in their favor.
- Secondary industries don’t shift even when the primary industry might move. So the entrepreneurs are dissuaded from shifting their locations as it might affect their market base.
One important factor is the strategic location of industries to prevent them from being attacked. This was followed by USA and USSR after the Second World War as both shifted industries towards more secure locations. India too used licensing to locate industries in backward areas as they might promote development.
Steel Industry in China
In China, the railways were in a nascent stage and couldn’t transport coal to the factories. Electricity too was a problem in China and so industries moved to the location of coal mines i.e. North China.
The Chinese steel industry was located in the North of Manchuria, Beijing, and Wuhan province. China under Mao’s leadership wanted to transform into an industrialized economy from an agrarian economy. Mao ordered all communes to set up backyard furnaces and gave them high targets for steel production. However, this experiment failed due to inadequate training provided to the producers. This meant that the steel produced was nonuniform quality. The agro laborers were diverted to steel production and this meant a shortage of agro workers. Thus agriculture productivity declined and led to famines. Forests were cut for charcoal production and energy source for fuel so this created soil conservation problems.
Automobile Industry
The automobile industry needs the support of primary industries like ferrous and nonferrous industries and also spare parts. The production in an assembly line needs a continuous supply of these and so the automobile industry should be located in areas that are already established manufacturing locations.
Detroit became the car capital of the world because the Pittsburgh steel industry and the Appalachian coal mines provide the necessary raw materials like steel and coal for energy supply. New York is a major hub and is a market for cars also Great lakes provide access to markets in Canada. Detroit has a long tradition of building machines and so industries to support the automobile industry like electronics and spare parts have emerged there. Skilled labor to is available.
Toyota Nagoya region also saw a large shift in production from silk to automobiles. Silk demand was declining and many laborers moved towards automobiles and creating an abundant supply of laborers. Nagoya a port city facilitated exports and imports of raw materials. The market also was present in Nagoya. Japanese automobile industry developed by reverse engineering US manufactured cars.
Shipbuilding Industry
The shipbuilding industry needs the following physical factors viz. coastal area, and deep navigable waters. Economic factors needed are capital, the iron and steel industry, the market, and skilled engineering labor.
Japanese and German industries too have developed due to the same reasons viz, coastal areas/estuaries were present, Iron and steel industry located close or worked on imported iron. Demand for ships in the national and international market. Mechanization was used or engineering workers were present.
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