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.
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.
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
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.
The British Government has withdrawn many of its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.