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Industrial Location

Industrial Location






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Industrial Location Industrial Location Presentation Transcript

  • Industrial Activity and Geographic Location
  • Industrial Revolution:
    • Britain
    • Late 1700s
    • Textile industry
    • Diffused to European continent.
  • Factors Influencing Industrial Location
  • 1. Raw Materials
    • Access is important today. (Japan has few natural resources, but does have easy access.)
    • Reduced cost of transporting has lessened the importance of proximity.
  • Bulk-reducing industries are oriented towards the raw material.
    • Copper, for example. The ore is heavy, so mills are located near the mines in order to “reduce the bulk” so that the final product costs less to transport.
  • 2. Power
    • Early industries were located near coal fields. (Pattern persists in many places.)
    • Today industries are more widely dispersed because there are other sources of power and energy can be transported rather easily.
  • 3. Labor
    • Labor intensive industries (making clothing, assembling electronic parts) require cheap labor.
    • Some industries require skilled labor. (Automobile assembly, precision instruments.)
  • 4. Markets
    • The importance of proximity varies, but some industries are market-oriented. Some examples are…
    • --heavy and bulky items such as cement.
    • …bulk-gaining industries such as soft drinks and beer.
    • …perishable products such as bakeries, milk bottlers, and daily newspapers.
  • 5. Transportation
    • The cost of transportation can affect other variables.
    • Port cities are attractive locations because a location here would cut down on transport costs. (Break-of-bulk points)
  • Mode of transportation
    • Ship?
    • Rail?
    • Truck?
    • Air?
  • Container systems have decreased the cost of transportation.
  • 6. Organizational and entrepreneurial setting
    • Political stability
    • Friendly government
    • Lack of corruption
    • Availability of capital
  • Role of Infrastructure
    • Industrial location decisions can be influenced by the availability of supporting transportation and communication systems.
  • 7. Agglomeration
    • The clustering of support industries and a labor pool can encourage location to a certain place.
    • Excessive agglomeration can lead to overcrowding, higher rents, and increasing costs of labor.
    • Deglomeration is occurring in some locations. In the US, industry is becoming more suburban.
  • 8. Environment
    • The film industry requires sunny climate. (Hollywood and Bollywood)
    • Aircraft manufacturers require a good climate
  • Amenity sites
    • Some industries locate in places that provide amenities for their employees.
  • 9. Locational Interdependence
  • Footloose Industries
    • Footloose manufacturing industries have no strong locational preference--they are neither market- nor resource-oriented.
    • They have more flexibility in terms of location because they are not so concerned about transportation costs.
    • An example would be a high-tech industry such as computing.or IT companies that transmit information over phone lines.
  • Ubiquitous Industries are located everywhere in proportion to the population.
  • Weber’s Least Cost Theory Weber considered three factors:
    • Transportation (most important.)
    • Labor
    • Agglomeration
    • (Substitution Principle: If other costs go down, an industry can absorb a higher cost of transportation.)