Industrial Evolution: From Mechanization to Globalization
**Modern Industry**
- **Labor:** The first characteristic of modern industry is the prevalence of wage labor.
- **Mechanization:** The second is the use of machines, which began to use new energy sources to operate.
- **Division of Labor:** The third is the division of labor.
**Globalization of the Economy**
- Much production goes to market through global companies.
- Many large firms’ industrial processes are multinational.
- Production is also global.
The various tasks necessary to produce a product are separated, and each one develops where it is most convenient (offshoring).
**A Consumer-Oriented Industry**
To succeed, large industrial companies spend much of their budget on these aspects:
- Marketing and advertising.
- Research and development.
- Organization of the company (for efficiency).
- Improvement of marketing channels.
**Location of Industries**
Its location is conditioned by a number of factors:
- Ease of access to transportation.
- Qualifications and cost of labor.
- Closeness to consumers.
- Proximity to other industries.
- Land prices.
- Abundance of natural resources.
**The Main Types of Industries**
**Heavy Industry**
- **Steel:** Manufacture of steel.
- **Metals:** Processing of metals.
- **Petrochemical:** Plastics, gasoline, etc.
- **Cement:** Materials for construction.
- **Equipment Industries:** Tools for other industries.
These are located near the sites of extraction of raw materials or ports.
**Light Industry**
- Food
- Fine Chemicals (pharmaceuticals, detergents, etc.)
- Electronics
- Automotive
- Textiles
These are located near large cities.
**The Great Industrial Regions**
**America**
The United States is the first country to industrialize in the world. It has a skilled workforce and a high level in traditional industries as well as technology. Dropouts are notable.
**The European Union**
The European Union is the first industrial region in the world. It is notable for manufacturing equipment, automobiles, communications equipment, and luxury articles, as well as for its aerospace and chemical industries.
**Japan**
Japan is the second most industrialized country in the world. It is based on high technology and leading production methods, an aggressive trade policy, and abundant, skilled, and disciplined labor. The major industries are automotive, electronics, and large consumer equipment.
**China**
China is the country with the greatest industrial growth in recent years due to its cheap labor. Other industries are moving there. It is characterized as the largest manufacturer of electronic equipment, textiles, footwear, and toys.
India is experiencing remarkable industrial growth.
**The 4 Asian Dragons**
Hong Kong, South Korea, Singapore, and Taiwan have industrialized by copying the products of more advanced countries. Today, the 4 Dragons have their own technology at very competitive prices.
**Other Industrial Regions in America**
In America, northern Mexico also stands out, where some US companies are established, specifically in Argentina and Brazil.
**Industry in the EU, Spain, and Andalusia**
**Industry in the EU**
The EU is the leading industrial power in the world. Legislation facilitates business mergers. Industry contributes 20% of EU production and employs some 34 million people. Germany is the most industrialized country in the EU.
Industry is evolving differently:
- In Western European countries, industrial employment is decreasing due to reconversion processes and the delocalization of factories.
- In the countries of Eastern Europe, industry maintains a very important role in their economy and employment.
**Industry Challenges in Europe**
European industry is strong and competitive but has some weak points:
- Research and innovation are much lower than in the US and Japan.
- European industry faces growing competition from Asia, and Asian product prices are much lower because their wages are lower.
- The EU sets out plans to reduce energy consumption in industries and the pollution they generate.
**The Current Spanish Industry**
Since the 1980s, industry has lost importance in the Spanish economy as a whole. Today, it is the 5th industrial power in the EU. Catalonia is the Autonomous Community with the largest industrial proportion of the total. It is followed by Madrid and the Valencian Community. Madrid and Catalonia are the communities that invest the most in research and development. The majority of Spanish industrial enterprises are SMEs (small and medium-sized companies with less than 250 workers). The Spanish industry with the highest production value is food and beverages, followed by automotive, metallurgy, and chemicals, in addition to the entire project.