Industry Location Factors

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

LOCATION

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

Site

Land on which to build

Trucks

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

Markets attract many industries to locate

Industry Location Factors

Subtopic

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.

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

Transport

Shipping

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

Market

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

Markets are where the finished products will be finally go

Energy

TYPE OF INDUSTRY

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

Government

GOVERNMENT PLAYS A ROLE

Raw Materials

Timber

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