Industry Location Factors

Industry Location Factors

Raw Materials

Raw Materials

the output of one manufacturing industry sometimes becomes input of the raw materials of another

Timber

Timber

Government

GOVERNMENT PLAYS A  ROLE

GOVERNMENT PLAYS A ROLE

TYPE OF INDUSTRY

Location factors will
vary according to type
of industry
This map focusses on secondary
or manufacturing

Energy

Market

Markets are where the finished products will be finally go

Good infrastructure
Transportation, Electricity supply, water supply, drainage system, communication…….
Large population size
Large labour force
Skilled labour
Obtain advanced technology
Industrial agglomeration

Transport

(for distribution of finished goods, receiving
raw materials and movement of labour)

Shipping

Shipping

Labour

- Cost of Labour – Wage Level
- Skills of Labour
- Highly skilled, Semi-skilled, Unskilled
- Labour Mobility
- Skill level
Highly skilled (highly mobile)
Semi-skilled (fairly mobile)
Unskilled (least mobile)

- Reputation


Capital
Capital is needed to finance the costly factory system, to pay wages, purchase stock of material, component parts, finished product not yet sold. Money can be obtained from investment of manufacturers, sale of shares to private investors, loan from banks, insurance companies and government.

Subtopic

Subtopic

Markets attract many industries to locate

Some industries are more likely to be located near markets
Perishable products: eg. Bread, cakes….
Fragile products: eg. Bottled drinks, porcelain…..
Bulky and low value products: eg. Brick-making…..
Labour intensive industries: eg. Toy-making, electrical goods….
Keep close contact with consumers: eg. Jewellery, printing…
Involve large quanities of raw materials: eg. Electric Appliance..
Specialized products:
eg. Automobile parts manufacturers located near auto making centre

Trucks

Trucks

LOCATION

LOCATION

Site

Site

Land on which to build

Products which are highly specialized and involve high levels of technology are usually manufactured in developed countries.

LOCATION

LOCATION

DEVELOPING COUNTRIES USUALLY HAVE INDUSTRIES WHICH REQUIRE LESS TECHNOLOGY AND CAPITAL INVESTMENTS