14 - Changing logic for production location

ucla | GEOG 4 | 2023-11-27 02:16

Table of Contents

Location of Jobs

  • Domestic job loci -> GDP growth
    • LA, SF, Phoenix, Dallas, Miami, Atlanta, DC, Boston, NYC
  • Specialized industrial districts within the US
    • Tech - Bay, LA, DFW, Boston, NYC, Chicago, Seattle, Atlanta, DC

Reasons

  • Decreased transportation jobs
  • Decentralization of firms -> “vertical disintegration”
    • out sourcing offshore labor/manufacturing
  • agglomeration economies

    Agglomeration Economies

  • local suppliers
  • specialized services
  • local specialized labor
  • local learning effects bw firms
  • trust and collaboration from interactions irl

Regional Motors Model

  • matrix of transport and communication costs vs agglomeration economies
  • 6 scenarios
    • 1 - industrial rev
    • 3 - branch-plant industrializating
      • globalization of production
      • external economies still within firms not places
    • 4 - spatial entropy (telecommunicating, remote work, zoom)
    • 6 - large metropolitan areas
      • super agglomeration economies
      • FIRE (financial, insurance, real estate)
      • NYC, London - diverse super agglomerated economies
    • 2 - industrial districts specialized in industries
      • SF/silicon valley - specialized in specific industry
  • Core focuses on scenarios 6 and 2

Summary

  • redistribution of growth and jobs down to 3 points:
    1. decreased transportation costs as a part of production
    2. vertical disintegration of large firms from out sourcing
    3. increased role of agglomeration - localization and urbanization in core

Conclusions

  • Not just changing types of jobs and locations of jobs in the core countries but also a changing economic logic to what and where they are.
  • Decline in number of manufacturing jobs and as share of employment even as manufacturing production does not decline (technology)
  • Rise of divided and polarized occupational distribution and income/wealth inequality
  • Rising importance of agglomeration economies in new sectors