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Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz PowerPoint PPT Presentation


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hotdogs. Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz. Manufacturing and its definition. The word manufacture comes from the Latin manus (hand) and facere (to make). Manufacturing and its definition.

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Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz

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Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

hotdogs

Eya Abrantes | Mashee Sy | Rosh Wee Eng | Justin Toribio | Ian Claveria | Lloyd Reyes | Jhay Capuz


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing and its definition


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

The word manufacture comes

from the Latin manus (hand) and facere (to make).


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing and its definition

Manufacturingis the use of machines, tools and labor to make things for use or sale.


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing and its definition

The term may refer to a range of human activity, from handicraft to high tech.


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing and its definition

But is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing and its definition

Among the most important manufacturing industries are those that produce aircraft, automobiles, chemicals, clothing, computers, consumer electronics, electrical equipment, furniture, heavy machinery, refined petroleum products, ships, steel, and tools and dies.


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Economic Status of Tropical Countries relative to Temperate Countries

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Temperate:

  • JAPAN

    • 2nd technologically advanced country in the world

    • Small defense allocation (1% of GDP)

    • Based on PPP – 3rd largest economy in the world after USA and China

    • Big debt (170% of their GDP)

    • 2 notable characteristics: close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force.

    • Industrial sector is highly dependent on imported materials

    • Agricultural sector is also focused on


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • USA

    • Most technologically powerful economy in the world

    • Business firms in US have greater flexibility than their counterparts in West Europe and Japan

    • Advanced in technology

    • Just recently, Pres. Obama signed a bill providing an additional $787 B to create jobs and make the economy recover

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • United Kingdom

    • 1 of the 5 trillion dollar economies in West Europe

    • Agriculture is intensive and highly mechanized

    • Government has greatly reduced public ownership

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Tropical:

Philippines

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

General Types of Manufacturing in the Tropics

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • mostly agricultural in nature

  • Fruits and fruit products

  • From livestock

  • Timber Products

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Fruits and Fruit Products

Pineapple Products : juice, canned, candied, furniture

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Fruits and Fruit Products

Mango Products: purees, dried, juices

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Fruits and Fruit Products

Coconut: furniture, jam, biscuits, oil, etc.

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Fruits and Fruit Products

Sugarcane: rum, sugar, cane ethanol

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

Pineapple Producers

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

mango Producers

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

mango Producers

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

coconut Producers

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

sugarcane Producers

Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Devision

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

From Livestock

Beef Jerky, milk

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

Tropical part of Australia, Philippines

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

From Timber

Logs, sawn wood, veneer, plywood

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Sample Countries

Brazil, Burma, Sri Lanka, Singapore

Manufacturing in the Tropics


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • CLIMATE

  • aggregates of weather over a span of time

  • elements: temperature, pressure, wind, precipitation

  • considered an economic resource

  • -‘dualistic’ influence on economic conditions

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • CLIMATE AND MANUFACTURING

  • climate affects the type of good to manufacture/process [nature of industry]

  • - tropical countries: plenty of raw materials

    • - mostly agricultural [primary] product

    • - manufacturing- concerned with the processing of agricultural

    • or primary products [for export and domestic

    • consumption]

      • -most tropical countries are agricultural

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • climate affects manufacturing locations

  • According to Riefler and Lamphear (1980)

  • a. effect to people’s behavioral patterns: “people variable”

    • i. role of climate: amenity orientation

    • ii. industries are highly attracted to places with high amenities

      • - more favorable climate: more people would migrate to that

      • place

      • - industries would emerge as the result; services (tertiary

      • industries) also emerge

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • b. economic costs: energy costs

    • - firms become more ‘climate-oriented’ as energy costs become higher

    • - industries tend to move toward places with climates favoring their ‘craft’

      • - food processing industries: colder climates

      • - lumber industries: tropical climates

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • 3. climate affects [investment flows] developments in manufacturing

  • - tropical climate: not conducive for economic development

  • [Ezeala-Harrison (1996)]

  • - restricts economic development”

    • - presence of torrential rains and destructive storms

    • - dehydrating effect of heat: drains physical and mental efforts in production

  • - industrial activity [manufacturing]: indicator of economic development

  • - Most tropical countries are considered as developing countries with the exceptions of Singapore and Hong Kong.

  • - Singapore: island city-state

  • - Hong Kong: former British colony

SOURCES

EZEALA-HARRISON, F. 1996. Environmental Issues and Development. In: Economic development: theory and policy applications by Ezeala-Harrison, F. 1996. Greenwood Publishing Group. Pp. 209-211

RIEFLER, R. & LAMPHEAR, F.C. 1980. Climate and Manufacturing Location. US Department of Commerce. Retrieved October 1, 2009. In: http://www.jrap-journal.org/pastvolumes/1980/v14/14-2-4.pdf

Chapter Sixteen: Manufacturing. [Hand-outs in Geog133]

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Soil

Pros

  • The soil in the tropics is very fertile and thus manufacturers have capitalized on this and several plantations have been built.

    • Terra preta

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Soil

Examples

  • Coffee plantations

    • Coffee is an important necessity commodity. With over 500 billion cups consumed every year.

    • Most of the production of coffee is produced in the tropics most notably in Brazil where 2.59 millions in metric tons are produced.

  • Tobacco/Cigar manufacturing

    • Good example are Cuban cigars in cuba

    • Tobacco plantations and then hand cigars are made in a factory.

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Soil

Cons

  • Soils in the humid tropics are normally highly acidic and nutrient poor; decomposition is rapid because of high temperatures, high humidity and frequent heavy rains.

  • Approximately a third of all tropical soils are too acidic to support traditional food crops. These highly acidic tropical soils represent the largest untapped arable land left in the world, and therefore more productive utilization of these lands is key to expanding the world food supply.

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

vegetation

Pros

  • The tropics has lush vegetation and abundant of raw materials that is beneficial for manufacturing.

    Examples

    • Timber used for manufacture of woodwork and construction materials.

    • Several tropical plants which has various uses ranging from medicine to household shampoos and such.

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

vegetation

Cons

  • As said most of the tropics (especially in the rainforests) it is impossible to establish any type living.

  • Manufacturing requires lots of capital and since most of the countries in the tropics are considered “poor” then manufactures are mostly owned by foreigners.

Climate, Soil and Vegetation, and the Manufacturing Sector


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Status of the manufacturing sector of the philippines relative to nearby countries


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Manufacturing accounts for roughly 71% on the average of industry output and 24.6% of gross domestic product (GDP) for the period 1986-2007.

Source: ADB, SDBS Key Economic Indicators

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

The growth of manufacturing gross value added (GVA) spiked at 5.8% in 2005. Thereafter, while growth in GDP has been on the upswing to a resurgent high of 7.2% in 2007, manufacturing was on a downslide to 3.4%, lower than its 3.5% growth posted in 2002.

Growth of Gross Domestic Product and Manufacturing (%)

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Source of basic data: NSCB – I-Stat online.

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Among selected Asian countries, the Philippine manufacturing share to GDP for the period 2000-2006 was one of the lowest, marginally higher than Vietnam and does not even come close to that of Indonesia.

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Almost 90% of total Philippine exports are manufactured goods highlighting the dependence of the country on manufactured good for exports.

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Jobs generated in the manufacturing sector grew by 1.3% per annum on the average over the period 1996-2006. However, as a percentage of total employment, the share of manufacturing went down from 10.3% in 1997 to 9.3% in 2006.

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Except for Vietnam, the share of manufacturing employment to total employment of all comparator countries declined for the period 2000-2006. The Philippines consistently has one of the lowest shares.

Source:

Facts in Figures

Congressional Planning and Budget Department

House of Representative

July 2008

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • History

    • 1880 (last years of Spanish Era): food, tobacco, and beverages

    • 1900-1940: agricultural products (sugarcane and coconuts), the manufacture of apparel, and the production of ceramics, cement, glassware, and wooden and rattan furniture

    • 1960: manufacturing accounted for 20 percent of the gross domestic product (GDP)

    • 1970 and 1972: the Export Incentive Act, and the Export Processing Zone project

    • 1980: protection of the domestic manufacturing  aimed at import substitution

    • 1992: ASEAN free trade  

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • Did you know?

    • Manufacturing which account for about 20.7% of total GDP felt the

    • crunch of the global crisis as it declined by 7.3%.

    • Manufacturing is the second most important economic sector after services, employing 9.8 percent of the labor force and contributing 22 percent of the GDP in 1998.

    • Over 60 percent of the manufacturing establishments are still concentrated in the Manila area and the southern Luzon region.

    • Foreign direct investment, an important source of funding and technology for manufacturing, is low compared with countries such as Malaysia and Thailand.

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • Manufacturing Industry 

    • Food manufacturingBeverages

    • Tobacco ProductsTextiles

    • Footwear and wearing apparelLeather products

    • Paper and paper productsPublishing and printing

    • Petroluem productsChemical products

    • Rubber and plastic productsNon-metallic mineral products

    • Basic metals – ron and steelFabricated metal products

    • Machinery excluding electricalElectrical machinery

    • Transport equipmentFurniture and fixtures

    • Miscellaneous manufactures

  • Source: http://www.census.gov.ph/data/sectordata/datamfg.html

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • TOP 3 industries 

  • Electronic components earned the highest revenue amounting to P461.1 billion (15.6%)

    • Food except beverages followed closely with P456.2 billion earnings (15.5%)

    • Petroleum products placed third with an income of P337.0 billion (11.4%).

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • More on Electronics 

    • Semiconductors have traditionally been the main output of the Philippines electronic industry and in 2005 they accounted for 51% of total production with computer equipment and parts accounting for 34%

    • In 2008, there was a 5.6% fall in production of electrical machinery (including semiconductors), mainly due to soft external demand in the second half.

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • More on Food Manufacturing 

    • The food manufacturing sector in the Philippines is highly-concentrated

    • The largest food manufacturing companies in the Philippines are San Miguel Corporation and Purefoods Corporation (1990’s)

    • On average, the top four firms in the food manufacturing sector accounted for 63 percent of total revenues in 1978 and about 72 percent in 1994, representing an increase of 14 percent.

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • More on petroleum industry 

    • Top three oil refineries in the Philippines are Petron, Shell and Caltex

    • Petron, our state-owned company, accounts 52 percent of the industry’s refining capacity

    • Petron Corporation is the Philippines' leading refiner, marketer, and distributor of

    • petroleum-based products

    • Petron's two principal shareholders, each of which hold 40 percent of the company, are the Philippine government's Philippine National Oil Company and Saudi Aramco, based in Saudi Arabia. The remaining 20 percent of the company's shares are listed on the Philippine Stock Exchange and are held by more than 200,000 shareholders. However, at mid-2003, the Philippine government was considering selling its 40 percent stake in the company in a move to drive down the country's budget deficit.

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

Top Manufacturing Zones 

Manila

Northern Mindanao

Iligan: steel, fertilizers and other chemicals, and cement

Cagayan De Oro: a steel plant and a pineapple processing factory that cans pineapples for a nearby plantation

Davao: plywood and lumber mills, furniture firms, food processing plants, and cement factories

Cebu: rattan furniture, shell craft industry

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

  • Sources: 

    • http://www.bookrags.com/research/manufacturing-industryphilippines-ema-04/

    • http://www.census.gov.ph/data/sectordata/datamfg.html

    • www.census.gov.ph/data/sectordata

    • http://dirp4.pids.gov.ph/ris/pjd/pidspjd01-1retailfood.pdf

  • http://www.fundinguniverse.com/company-histories/Petron-Corporation-Company-History.html

Manufacturing in the Philippines


Eya abrantes mashee sy rosh wee eng justin toribio ian claveria lloyd reyes jhay capuz

OPEN FORUM

Free Trade vs. Protection of Local Products


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