Question

Explain with examples any five factors that are responsible for the industrial location.

Discuss with examples, any five factors that influence industrial location.

Answer 1

The location of an industry is the most important thing that determines the economic viability of the project. Several factors contribute to determining the location of an industry.

Some of these are as follows:

• Availability of raw materials
• Availability of cheap labour
• Availability of necessary infrastructure such as water, power, transportation, etc.
• Proximity to the market
• Manufacturing activity tends to happen at one appropriate place where all the factors of industrial location are easily available or can be arranged at lower costs. Government policies and availability of specialized labour also influence the location of industry

Answer 2

Some of the factors influencing industrial locations are:

1. Access to Market: The existence of a market for manufactured goods is the most important factor in the location of industries. Remote areas inhabited by a few people offer small markets. The developed regions of Europe, North America, Japan and Australia provide large global markets, as the purchasing power of the people is very high. The densely populated regions of South and Southeast Asia also provide large markets. Some industries, such as aircraft manufacturing, have a global market. The arms industry also has global markets.
2. Access to Raw Material: Raw material used by industries should be cheap and easy to transport. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material, such as steel, sugar, and cement industries. Perishability is a vital factor for the industry to be located closer to the source of the raw material. Agro-processing and dairy products are processed close to the sources of farm produce or milk supply, respectively.
3. Access to Labour Supply: Labour supply is an important factor in the location of industries. Some types of manufacturing still require skilled labour. Increasing mechanisation, automation and flexibility of industrial processes have reduced the dependence of industry upon the labourers. 
4. Access to Sources of Energy: Industries which use more power are located close to the source of the energy supply, such as the aluminium industry. Earlier, coal was the main source of energy; today, hydroelectricity and petroleum are also important sources of energy for many industries.
5. Access to Transportation and Communication Facilities: Speedy and efficient transport facilities to carry raw materials to the factory and to move finished goods to the market are essential for the development of industries. The cost of transport plays an important role in the location of industrial units. Western Europe and eastern North America have a highly developed transport system which has always induced the concentration of industries in these areas. Communication is also an important need for industries for the exchange and management of information.
6. Government Policy: Governments adopt ‘regional policies’ to promote ‘balanced’ economic development and hence set up industries in particular areas.