The Factors That Affect To Location Of Industry

1. The factors that affect the location of industry
Land
The factory needs sufficient flat land to
build on. The price of the land is
important.
Raw materials
If raw materials are bulky or heavy, the industry will
locate close to save on transport costs.
Environment
Industries nowadays are far less restricted in
their location requirements. Many now look at
what the area can provide for its workers before
deciding to locate there.
Labour
The availability of a labour force is more
important to some industries than others.
Labour intensive industries like car
assembly need a readily available supply
of labour.
Energy
This was a more important factor in the
past: factories needed to locate close to
a source of power, originally water, and
then coal. This is not so important now
because many industries use electricity.
Transport/Communications
The availability of a good transport network,
roads, railways and airports is very important to
modern industries. They wish to receive their
components quickly and despatch the finished
goods to market with the greatest speed.
Markets
The importance of nearness to markets is
dependant on the goods being produced.
For example:
Fragile goods – need to be produced near to
their markets so that they do not get damaged
on route.
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.

2. Capital
This is the money that is invested to start
a business. The amount of capital will
determine the size and location of the
factory
Government policy
The British Government has withdrawn many of its
incentives, which it used to encourage industries to
locate in depressed areas.
The EU now provides grants to these areas.
Industries that locate there will receive assistance
in the form of low rent and rates.