The Factors That Affect To Location Of Industry


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The Factors That Affect To Location Of Industry

  1. 1. The factors that affect the location of industry Land Raw materials Environment The factory needs sufficient flat land to If raw materials are bulky or heavy, the industry will Industries nowadays are far less restricted in build on. The price of the land is locate close to save on transport costs. their location requirements. Many now look at important. what the area can provide for its workers before deciding to locate there. Labour Transport/Communications The availability of a labour force is more The availability of a good transport network, important to some industries than others. roads, railways and airports is very important to Labour intensive industries like car modern industries. They wish to receive their assembly need a readily available supply components quickly and despatch the finished of labour. goods to market with the greatest speed. Energy Markets This was a more important factor in the The importance of nearness to markets is past: factories needed to locate close to dependant on the goods being produced. a source of power, originally water, and For example: then coal. This is not so important now Fragile goods – need to be produced near to because many industries use electricity. their markets so that they do not get damaged on route. Bulky goods – Need to be made close to the market because of high transport costs. Service industries must locate at their market. Market is not so important to other industries.
  2. 2. Government policy Capital The British Government has withdrawn many of its This is the money that is invested to start incentives, which it used to encourage industries to a business. The amount of capital will locate in depressed areas. determine the size and location of the The EU now provides grants to these areas. factory Industries that locate there will receive assistance in the form of low rent and rates.