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Ontario

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									   Agenda – February 12, 2008
Time              Activity
• 3:30            Agenda
         • Take-up In-Class Assignment - last day
         • New In-class Assignment
         • Web posting of notes for last week’s DVD – Part I

• 3:40            Lecture: Chapter 5
             – “Ontario - Part I”

• 4:30            DVD: “Water: Under Fire” – Part II
• 5:00            Break
• 5:15            Lecture: Chapter 5
             – “Ontario - Part II”
       In-class Assignment

1. A) What three physiographic regions are
   found in Ontario?
   B) What are the three Climatic Regions?

2. A) Which area of Ontario receives the
   greatest total snowfall?
   B) Why?
        In-class Assignment

3. A) What are the two Environmental
   Challenges suggest by Bone?

   B) What is the third suggested by Dr.
   Bolger?
                        Ontario

• Ontario‟s superlatives
     • Canada‟s most populous Province (12,160,282)
     • Canada‟s second-largest Province (over 1,000,000 sq. km)
     • Canada‟s leading economic region
     • Courchene (economist) - may become the new “heartland” of
       North America
     • Four resources - agriculture; forests; minerals and
       hydroelectricity- developed the economy
     • Now sustained by manufacturing and service industries
                   Ontario
– Two distinct regions
   • 800 000 vs 11 000 000

– Two distinct economies
– Is the heart of Canada‟s economy
– The most politically influential Province
– The “Province of Opportunity”** (S. Ont.)
– Industrial and population heartland vs an old
  resource hinterland with a stalled economic and
  population growth
Figure 5.1 Ontario, 2001
             Ontario‟s
      - Centralist Perspective
• Political and economic dominance

• Seen by other areas as favoured by
  Ottawa

• Ontario - “shouldered the burden of
  Confederation” - major contributor to the
  equalization payments
Figure 5.2 Central Canada
      Ontario – Physical Geography

• Larger than most countries (+1 million sq.
  km.)

• Three physiographic regions (Hudson Bay
  Lowlands, Canadian Shield & Great Lakes-St. Lawrence
  Lowlands)

• Three climatic regions (Arctic, Sub-Arctic, & Great
  Lakes-St. Lawrence)

• Central to Canada
• Proximity to U.S. industrial heartland
 Southern Ontario – Physical Geography

• Includes the most southerly land in Canada
  (Point Pelee is south of 42 degrees north
  latitude)
• Has a moderate continental climate, influenced
  by its proximity to the Great Lakes (short, cold
  winters; long, hot and humid summers)
• Annual precipitation of around 1000mm
  – Sometimes a lack of summer precipitation in the
    southwestern peninsula
  – Winter snowfalls can be significant in the lee of the
    Great Lakes
     S. Ont. - Physical Geography

• Has the longest frost-free period in eastern
  Canada
• Underlain by slightly tilted sedimentary rocks,
  with good to excellent podzolic soils
• Little relief topography
• Mixed forest vegetation
• Coastal areas are subject to pronounced
  fluctuations in levels of the Great Lakes
                 Northern Ontario
• Ontario‟s north makes up 87% of the Province‟s territory, but is
  home to only about 8% of its population
• Two physiographic regions - Canadian Shield & Hudson Bay
  Lowlands

• Higher latitudes = longer, colder winters

• 46 - 57 degrees North

• The region serves as a resource frontier (hinterland), with mining,
  forestry, and tourism dominating economic activities
        • Public sector employment is also significant
        • The region is highly dependent upon external markets and transportation
          infrastructure
        • „large‟ urban centres are widely scattered, with smaller single-industry towns
          between
        • The regional economy is stagnant; population is aging and declining
   Environmental Challenges

• Two major concerns:
  – air pollution
     • Golden Horseshoe - smog - health hazard
     • OMA - $1billion per year in medical bills

  – water pollution
     •   Walkerton, May 2000
     •   Great Lakes - asset and problem - shared with U.S.
     •   Industrial and urban pollution
     •   Initial efforts to clean-up lakes began to show results by
         1980‟s - but funding was cut
   Environmental Challenges

• Great Lakes - current threats
  – Growing levels of phosphorous - creation of
    a “dead zones” - only toxic organisms
    survive

  – Exotic species - sea lampreys, Asian carp,
    and zebra muscles - overtaking natural
    species - changing ecosystem
   Environmental Challenges
• I would suggest that there is a third major
  environmental issue facing Ontario!

   – Waste Disposal
      • Toronto garbage
      • Gets all the press
      • However, it is an issue all along the Great Lakes St.
        Lawrence Lowlands
      • Continues to grow with growth (increased populations =
        increased housing = increased waste)
               Ontario Facts

• 41% of Canada‟s GNP
• Annual output: +$300 billion
• Average Personal Income
  – $35,185 (Male $42,719 & Female $26,894)
     (Canada: A- $31,757 (M - $38,347 & F - $24,390)

• 38% of Canadian population
• Largest population of six regions
                    Trade
• Well positioned - domestically and
  internationally

• Raw materials and manufactured goods

• Free trade enhanced market access and share
  in US and North American economy

• 1980 Ontario‟s trade with the rest of Canada
  and with the U.S.A. was about equal

• 1998 trade with U.S.A. = 2.5 X‟s the rest of
  Canada
                        Trade
• 2001 - Automobiles and Auto parts - $93 billion

• 90% from assembly and parts plants in Ontario

• Represents a demand for steel, rubber, plastics,
  aluminium and glass products
• A slow down in the auto industry also has impact on all
  other components
• Canada-U.S. Auto-Pact designed to integrate Canada‟s
  auto industry into the N.A. market
• Ontario accounts for 16% of auto production in North
  America
    New World Economic Order
•   Two main events in the 1980‟s:
    1. Liberalization of World Trade
      – General Agreement on Tariffs and Trade -
        (GATT) - most countries agreed to reduce
        barriers to international trade (import quotas
        and health regulations)

    2. Free Trade Agreement (FTA)
      – Between Canada and U.S.
      – Replaced in 1994 by N.A. Free Trade
        Agreement (NAFTA) - included Mexico
  New World Economic Order

• Canadian manufacturer‟s expanded
  operations in an effort to reduce the per
  unit cost and thus be more competitive
• Faced competition from Mexico - lower
  labour costs and lower environmental
  restrictions
• All is not roses!
    New World Economic Order

•    A reminder: - increased trade with U.S.
     makes us more dependent on U.S. - three
     consequences:
    1. Rise and fall of U.A. economy effects our
       economy more directly
    2. No unlimited access - U.S. can still limit Canadian
       products (e.g. lumber, beef & grain)
    3. Our long-term economic fortunes closely tied to
       U.S. more than ever before
        Industrial Structure -
         Geographic Pattern
•   Economies have an industrial structure
    based on its economic activities

•   Divided into three categories:
     1. Primary
     2. Secondary
     3. Tertiary
Table 4.15

  P. 197
           Industrial Structure -
            Geographic Pattern
• The Tertiary / Service sector now represents 75%
  of industrial activity by value and employment

• Tertiary sector divided:
   – Tertiary (service functions - selling of goods and professional
     services)

   – Quaternary (decision-making and innovation functions)
Table 5.1 – P. 243
  Industrial Structure - Geographic Pattern
• Distinctive Geographic Pattern:
   – Primary activities mainly in N. Ont. (forestry and mining with
     initial processing done here to reduce shipping costs to the
     market)
   – Secondary & Tertiary concentrated in S. Ont.

• Global competition has effected manufacturing in
  Ontario as it tries to compete with the lower labour
  costs - this has resulted in company closures in S.
  Ontario.
   –   Wallacebury - Sydenham Glass
   –   Toronto - Lennox
   –   Cambridge - Nike
   –   Hamilton - Camco
   –   Hamilton - Stelco
                Southern Ontario
Agriculture:

• Southern Ontario - main primary industry takes advantage of
  the region‟s two main environmental attributes: its fertile soils
  and its longer growing season = $ 7 Billion a year.

• Most crops produced are for consumption within the region
  but there is easy access to the nearby U.S. states

• The dominant crops (hay-pasture, corn, and feed grains) are
  intended to meet demands of the livestock industry (dairy,
  poultry and meat)

• The rural landscape is dominated by livestock barns, silos,
  farmhouses, and rectangular farm fields of mixed crops
              Southern Ontario
• Specialized crops - soybeans, tobacco, sugar beets,
  fruits, grapes and vegetables

• Border delays after 9/11 have an impact of the quality of
  the goods getting to the U.S. markets

• Southern Ontario‟s rural areas are settled at a
  significantly higher density than those of the Interior
  Plains

• Average farm size 92ha (compared to 519ha in
  Saskatchewan)

• Three highly-specialized zones all south of 43 degrees
  North Latitude and thus the most southerly areas in
  Canada
                     Agriculture
1. Essex-Kent Vegetable Area
     •   Formerly know as the „corn belt‟
     •   Currently Canada‟s biggest producer of soy beans
     •   Corn, wheat, and soybeans dominate production
     •   Vegetables and fruits are important „high value‟ alternative
         crops
     •   Home to about ¼ of all vegetable processing
     •   Leamington has the highest concentration of greenhouses
         in Canada
     •   Tobacco was formerly of importance; vineyards are of
         growing importance
     •   Windsor, Chatham and Leamington are the main service
         centres in the region
                   Agriculture

2.   Norfolk Tobacco Belt
     • Has sandy (deltaic and other lacustrine) soils
     • Has poor soil fertility relative to other areas
     • Farm failure and abandonment were common in the 19th
       Century
     • In the 1920s, demand for tobacco stimulated agricultural
       production
     • Farm prosperity has declined with the demand for tobacco
     • Five crops currently dominate: corn, soy beans, wheat,
       hay, and oats
     • No major service centre exists in the region; higher-order
       goods and services are obtained in London and Brantford
                     Agriculture
3.   Niagara Fruit Belt
     • Fruit and vineyard production are concentrated on the Lake
       Ontario plain, north of the Niagara Escarpment
     • Grapes, cherries, peaches, plums, and pears dominate
       production in the north
     • The upland south of the escarpment is dominated by a hay-
       pasture-dairy economy
     • Soils vary: lacustrine soils dominate in the north, glacially
       deposited soils in the south
     • Lake Ontario moderates the climate of the area, particularly
       on the plain
     • Agricultural land in the region is under considerable
       population pressure
                 Manufacturing

• Southern Ontario‟s dominance of manufacturing
  in Canada is the result of a number of
  favourable conditions and policy developments:
     • An advantaged location – proximity to Great Lakes shipping,
       a resource hinterland, and the large American market
     • Well-developed land transportation routes resulting (in part)
       from the wheat economy
     • The Reciprocity Treaty, the National Policy, and the Auto
       Pact
     • American ownership of industry (within the context of trade
       restrictions)
     Key Topic:

The Automobile Industry
               The Auto Pact
•   1965 - Successful production-sharing
    agreement between Can. & U.S.

•   Ended in 2001 (See Vignette 5>5 - p. 251)

•   Served three objectives:
    1. Secured guarantees to keep Can. Plants open
    2. Increased Can. Plants - economies of scales -
       specialization on type of car to N. American
       Market.
    3. Reduced Can. Car prices
   Growth of the Auto Industry

• Drives Ontario economy
• 1:7 jobs in auto industry

• High wages - semi-skilled workers - puts
  money into broader economy

• ¼ of Can. Merchandise exports
• $ 97 billion in 2002
    Growth of the Auto Industry
•   Two problems:
    1. Abundance of auto production and drop in sales
       leads to closure of less productive plants
    2. Increase in Canadian Dollar increases the price
       of exports and makes us less competitive

 Two operations:
    1. Auto and Truck assembly
    2. Production of Auto Parts
   Growth of the Auto Industry
• Just-in-time Principle
  – Reduces inventories, warehouse space and labour
    costs
  – Delicate - easily disrupted and then effects assembly
    plants
• Outsourcing - subcontracting the
  manufacturing of auto parts

• Crests and Troughs in the industry
   Growth of the Auto Industry

• Located in S. Ontario

• Transportation linkages

• Most cars & trucks sold in U.S. (85% in
  2002)
Figure 5.3 Automobile-assembly centres in Ontario
    Growth of the Auto Industry
• 2002:
   – 65% of N. American production by “Big Three”
   – General Motors, Daimler-Chrysler & Ford (1992 - 90%)

• Competition - Japanese & Korean plants now in
  North America (including S. Ontario)
• Ontario attractive to Japanese:
   – Highly motivate work force
   – Canadian Dollar*
   – Medical insurance packages
  *Recent increase in Loonie = challenges to market
         Table 5.2 - p. 255
• Automobile-Assembly Plants in Southern
  Ontario, 2002
              The Future

• Liberalization of trade & globalization of
  auto industry - highly competitive N.
  American market

• Signs of slow down - spring of 2000

• “Big Three” - decreasing production

• Honda and Toyota - increasing
              The Future

• Canadian dollar continuing to rise

• Closures locally - Ford & Chrysler

• Planned expansion or improvements
  being put on hold.

• Uncertain future
        Northern Ontario

• Population located along the two
  transportation routes:
  – CP railroad and Trans-Canada Highway
  – CN railroad and northern highway
Figure 5.2 Central Canada
        Northern Ontario:
     - old resource hinterland
• Sluggish economy
• Declining population
• High unemployment

Demographics:
  – Aging population
  – Net out-migration (youth)
  – Few immigrants
          Northern Ontario:
      - old resource hinterland
•   Three major economic activities:
     1. Mining
     2. Forestry
     3. Tourism
 Linked to external markets
 Less than 10% of Ontario‟s exports
 Few major hydro-electric developments
  - more gentle slope of landscape
                    Mining Industry
• There is a direct spatial relationship between mining
  and the presence of certain kinds of rock in the
  Canadian Shield
   – Shield rocks are not equally mineralized
   – Much of the shield is composed mainly of granite and gneiss – neither
     of which typically have highly concentrated minerals
   – Most economically viable mineral deposits are found in areas of
     „greenstone‟
   – The distribution of mining is continually changing, in order to take
     advantage of new and/or cheaper sources of ore
   – The „core‟ of mining activity began along the Ontario-Quebec boundary
   – After the 1950s, mining began to spread east and west, and eventually
     to portions of the interior shield
      A Boom and Bust Industry
•   The boom and bust nature of the mining industry is
    associated with two main factors:
    1. Commodity prices
       •   Prices are subject to changes in the economy
       •   If the economy in general is doing well, demand for metals
           increases, and prices rise as well
       •   Economic slowdowns bring the prices of metals down, sometimes
           below the cost of production
       •   Competition from cheaper sources can impact upon the economic
           viability of particular mines
       •   War can impact upon the price of metals

    2. The discovery of mineral deposits can initiate boom and bust
       cycles (e.g. gold „rushes‟)
        Mining Industry

• Annual production of $5 billion

• Minerals are non-renewable

• Mining communities have short
  lifespan

• Examples - Cobalt, Elliot Lake
             Forest Industry

•   $15 billion in products annually
•   60% exported to U.S.
•   Soft-wood lumber - U.S. 27% duty

Two forest regions:
    1. Barrens region - Hudson Bay Lowlands
    2. Boreal region - Canadian Shield
Figure 5.4 US lumber lobby wins again
              Forest Industry
• 50 communities depend on forest industries

• Mills produce pulp and paper, lumber, fence posts,
  and plywood

• 25 % of Canadian production

• Ontario - leading exporter of newsprint and pulpwood
  to U.S. (most U.S. owned)

• Transportation - roads & transports to access and
  deliver wood; railways and transports for shipping
  secondary products to markets
• Advanced technology has changed the
  industry:
  – Logging now year round
  – Piggy-back trucks haul logs
  – Trees harvested before reaching maturity
  – Mechanical tree harvesters
  – Lower labour & tendency to clear-cut
                   Forest Industry
Facing challenges:
• Balance between harvesting and regeneration
   – Government issues “forest leases” and insists on companies
     replanting through management agreements - time will tell how
     successful this is

• Changing nature of Boreal Forest
   – coniferous to broad leaf (spruce, pine and fir replaced by poplar
     and birch - loss of original species
   – Harvesting replacing forest fires as change agent

• Aging of Pulp & Paper Plants
   – Old plants = old technology = toxic waste
   – Need to update - fear new, larger production will close plants in
     single industry towns
        Urban Geography

• Most highly urbanized province

• 85% of population urbanized

• 10/25 of Canada‟s largest cities in
  Ontario

• Growth areas:
  – Oshawa; Toronto; Ottawa & Kitchener
Table 5.3 – P. 262
         Golden Horseshoe
• Around the western end of L. Ontario (Niagara
  Falls to Oshawa)
• Outstanding economic performance
• Most densely populated area of Canada
• ¼ of Can. Pop. - 12+ towns and cities
• Hamilton - steel & Oshawa - # 1 in auto
  manufacturing
Figure 5.5 Major urban centres in Central Canada
                     Toronto

• Largest city in Can. - 5+ million (2002)
• Financial capital of Can. - home of main offices of
  banks and investment firms (national &
  international) and the TSE
• Growth = immigrants - ½ million (1996-2001) -
  visible minorities = (2001) 37 % of pop.
• Geographic expansion required to accommodate
  growth (lower land costs) led to creation of “GTA” -
  super city (1998)
                      Toronto

• Cultural and entertainment centre

• Strong tourism industry (impact of SARS)

• Problems:
  –   Waste management
  –   Traffic & commuters
  –   Demands on transportation
  –   Considering toll routes (like 407) or multi-person
      vehicle lanes
Table 5.4 – P. 266
              Ottawa Valley

• Ottawa-Gatineau (Hull) = 1+ pop. - 4th largest
  metropolitan area in Can.
• National Capital Area - both provinces - both
  official languages used
• Growth - “in-immigration” (from within Canada)
  as well as foreign countries
• 18% pop. Immigrant = 14% of pop. Visible
  minorities
Table 5.5 – P. 268
               Ottawa Valley
• Federal government & business community (and
  resulting goods & services demands) =
  employment
• Greater Ottawa - Ontario‟s 3rd largest urban
  cluster
• As Capital - focus of national & international
  affairs
• Industrial leader in “high tech” - “Silicon Valley
  North”
• Fluctuations - recent rise & fall of this industry
  has result in foreign take-overs
      Southwestern Ontario

• Cambridge to Windsor - 1 million pop.

• London:
  – unofficial capital of area
  – Provides administrative, commercial and
    cultural services to area
  – Home of insurance companies
  – Manufacturing - armoured personnel
    carriers and diesel locomotives by GM
       Southwestern Ontario


• Auto & auto parts industry throughout
  area

• “Technology Triangle”
  – Cambridge, Kitchener & Waterloo
     • innovative technologies developed
   Cities of Northern Ontario
• Sharp contrast to Southern Ontario
• Resource base losing economic strength:
  – Resources exploited
  – Increased technology = fewer workers

• Timmins - gold belt
• Sudbury nickel belt (with smelting of nickel &
  copper)
• Both now regional service centres yet have
  declining populations
Table 5.6 – P. 271
   Cities of Northern Ontario

• Sault Ste. Marie:
  – steel town & border city
  – located on Seaway
  – Algoma Steel - struggling to survive -
    distance from markets (2001 - 100th
    anniversary & filed for protection)
  Cities of Northern Ontario

• Thunder Bay:
  – Key in east-west transportation
  – Bulk products (grain, iron & coal) shipped
    in and out
  – Diminished with declining raw materials
    (iron ore - Atikokan)
  – Grain major product handled
           Ontario‟s Future

• Strong in financial & manufacturing
• Resource based industry challenged by
  diminishing resources = hinterland decline
• Industrial core remains secure
• S. Ont. needs to maintain or increase share in
  N. American market (esp. auto industry)
• Again - being tied so strongly to U.S. market
  creates uncertainty in a number of areas.

								
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