Question

Explain about manufacturing factories in urban areas.
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Answer 1

Answer:

Over the past few decades, manufacturing employment as a share of total employment has declined across the U.S., with most of the manufacturing jobs lost in metropolitan areas. At the same time, cities have become increasingly more service-oriented.[1] Despite this general trend, metropolitan areas—and, in particular, large metropolitan areas—still contain the great majority of manufacturing jobs.

Similar to those across the U.S., urban areas in the Eighth District host the largest employers in manufacturing; urban areas also host the largest service employers. While service industries naturally thrive near large concentrations of people, manufacturing industries also gain from locating in urban areas, where they are near suppliers and firms in similar or related industries, including firms in related financial, legal and educational services. Cities also provide manufacturing firms potential workers of varying skill levels. Understanding the existing location patterns of both manufacturing and service industries is important because firms' location choices are in response to not only geographic advantages but also to public policies aimed at promoting employment growth or at developing targeted industries in certain areas.[2]

This article describes the geographic distribution of the largest (by employment) manufacturing and service industries in the 339 counties in the Eighth District. The best data for analyzing the distribution of industries and establishments across counties come from the County Business Patterns (CBP) statistics of the U.S. Census Bureau. The data are the latest available—as of March 2011.[3]

The analysis reveals interesting patterns. First, we found that in the Eighth District, both the largest manufacturing and the largest service industries were related to the food industry. Other important manufacturing industries were related to the auto industry, while other important service industries were related to the health-care industry. We also found that manufacturing employment was concentrated in a small number of industries, whereas service employment was spread across a larger number of industries. In addition, the average manufacturing establishment employed about three times as many people as did the average service establishment.

Explanation: