An educational presentation reflecting on the factors which affect the location of various prominent industries around the world.

1. Factories affecting
location of industries
Geography Project

2. Raw Materials
• A raw material or feedstock is the basic material from
which goods, finished products or intermediate materials
are made from.
• When the materials required for the manufacturing are
located near to the factory, the transportation costs are cut
down.

3. Power
• A good power source is one of the major components
required for an efficient production system.
• If the power sources are close to the factory, the costs for
getting electricity for the factory are reduced, and there is
a higher efficiency.

4. Labour
• Labour are almost like the backbone of an industry, as
they are the ones who take care of all process within a
factory.
• When the employees live close to the factory, their
transportation costs are reduced, and there is ease of
access.

5. Transport
• Transport is a key aspect for increased sale and
production as the goods can be easily moved to and from
the factory.
• If the industry is located near major and efficient
transport systems e.g. roads, railways or ports, the goods
can be marketed.

6. Market
• The market size, to which the industry delivers to,
definitely affects the sales or the money made by the
industry.
• When the factory is located near a populated area, or the
CBD, the goods produced by the factory can be easily
sold, raising sales.

7. Site
• An effective site is also an important factor when
considering where the industry is to be placed.
• The best site for an industry is one which is large and flat,
to allow expansion of factory, if necessary.

8. Case Study 1: Zara
Factor Explanation
Raw Material In and around Arteixo, there are many cotton farms; therefore
transportation of cotton to the factory is simple and cheap.
Power The factory is near to the A-Coruna Power station, and is next to
the Arteixo and Seixedo rivers, which the factory uses as power
sources.
Labour Arteixo is a densely populated area; therefore a very large work
force can be established to increase production rates.
Transport Arteixo has a port, for transportation of clothes to foreign
markets, and is well linked from major areas in and around Spain.
Market Arteixo is near many major cities e.g. Madrid, and is also
relatively close to markets in France and UK.
Site Arteixo is a flat area, and has a large amount of un owned and
unoccupied land.
Industry: Textile
Location: Arteixo, Spain

9. Case Study 2: ArcelorMittal
Factor Explanation
Raw Material Georgetown is home to some of the largest hematite (iron ore)
mines in the world, and its seaside cliffs are a good source of
limestone.
Power Georgetown has a very large and efficient electricity plant, which
is only 3 kilometers away from the ArcelorMittal factory.
Labour South Carolina has a very large population of unemployed or
poorly paid workers, who could be recruited by the factory.
Transport Georgetown is a coastal town, therefore goods from the factory
can be easily exported to foreign markets, and road links are
excellent.
Market South Carolina is near many major cities in USA; so many other
industries can easily access ArcelorMittal for iron/steel
requirements.
Site Georgetown is a large, flat and spacious location, being a good
spot for a large factory, and can accommodate expansion if
necessary
Industry: Iron/Steel
Location: Georgetown, USA

10. Case Study 3: Nissan
Factor Explanation
Raw Material Yokohama is a highly industrial area, and all components used to
make a car are made and are available around the Nissan factory.
Power Yokohama has a very powerful electrical supply as the area
accommodates many other important industries.
Labour Yokohama is very densely populated area, allowing Nissan to
make a large work force, to increase production.
Transport Yokohama is a coastal province, therefore foreign markets are
taken care of, and road links from Yokohama to rest of Japan are
plenty.
Market South-East Asia and Oceania are very large markets, with a large
number of consumers, which Yokohama is easily accessible to.
Site Yokohama is a gently sloping, beautiful coastal city with lots of
empty land, with room for plenty of expansion.
Industry: Car
Location: Yokohama, Japan

11. Case Study 4: Samsung
Factor Explanation
Raw Material Many technological products essential for making the Samsung
goods are made around the factory, so transportation costs are
reduced.
Power Suwon is a highly developed part of South Korea, and Samsung
has put up its own power plant to fulfill the immense needs of its
factory.
Labour Suwon is very developed province; therefore there are many
highly skilled workers in the area.
Transport Suwon has many railway and road links to all parts of the country,
it also not far from the port, Ansan.
Market Suwon is located around many large local and foreign markets
e.g. Seoul, Pyongyang, China and Japan; therefore sales are high.
Site Suwon is a large and empty area; so large a space that Samsung
has made its own business park here, the Samsung Digital City.
Industry: High-Tech
Location: Suwon, South Korea