Footloose industry is a general term for an industry that can be placed and located at any location without effect of factors of location such as land, labour, climate and capital.
- The raw material used as well as finished products of these industries are very light so their location near the source of raw material or transport is not important. These industries often have spatially fixed cost, which means that costs of the product do not change despite where the product is assembled. Diamond cutting, computer chips and mobiles manufacturing are some of the examples of footloose industries. Advance technology like internet, email are used for raw material as well as marketing. These are generally non-polluted industries.
- A footloose industry does not have a strong locational preference because the resources, production skills, and consumers on which it depends can be found in numerous places.
- Such a company may relocate anytime, hence the term footloose. The internet and other forms of advanced communication technology have made location completely detached from both resource and market considerations.
- Some prominent examples are watch-making, diamond cutting, etc. Like the inputs, the output is lightweight and can be easily transported to the markets.
- Most of the footloose industries produce low volume and highvalue outputs.
- Honey industry is also a footloose industry.