8.2 - Factors Influencing Industry Location
The influence of raw materials on industrial location
The availability and nature of raw materials play a crucial role in deciding where industries set up their operations. Positioning near raw material sources can significantly reduce costs and improve efficiency, especially for industries dealing with heavy or bulky inputs.
Factors linking raw materials to industrial location
- Reduction in transport costs - Establishing a factory close to raw material sources cuts down on the expense of moving heavy or bulky materials, particularly if they lose weight during manufacturing. For instance, a cement works might be located near a limestone quarry to minimise haulage costs.
- Historical importance of ports - In earlier times, ports were vital as entry points for imported raw materials. Cities like Liverpool and Bristol developed as industrial hubs due to their port facilities.
The role of labour supply in determining industrial location
Access to a suitable workforce is a key consideration for industries when choosing a location. The availability and skill level of workers can influence both the feasibility and success of industrial operations in a particular area.
Key aspects of labour supply affecting location
- Availability of workers - Industries tend to set up in regions with a sufficient number of people seeking employment. High unemployment in an area can attract businesses looking to fill positions easily.
- Skill suitability - Beyond numbers, the workforce must possess the necessary skills for the industry. For example, a technology firm requires a pool of trained engineers and technicians, influencing its choice of location to areas with such expertise.
The impact of transport on industrial site selection
Transport infrastructure and costs are major factors in determining where industries are located. The efficiency and expense of moving raw materials and finished goods can shape decisions, as can the type of transport available in a region.
Transport considerations in industrial location
- Cost of moving materials and products:
- If raw materials are costlier to transport, perhaps due to waste production, industries prefer locations near the source.
- Conversely, if finished products are expensive to ship due to size or value, proximity to the market becomes more economical, such as in car manufacturing.
- Types of transport infrastructure:
- Traditionally, rail was essential for transporting heavy goods, making locations near rail hubs desirable.
- In modern times, the rise of road transport has shifted focus to areas near major roads or motorway junctions.
- For overseas trade, goods are transported by ship, often using container lorries and roll-on roll-off ferries.
- Air transport, though expensive, suits small, high-value items.
The significance of market proximity in industrial location decisions
The location of the market, where products are ultimately sold, is another critical factor in deciding industrial sites. Being close to consumers or other industries can reduce costs and improve efficiency in distribution.
Reasons for locating near markets
- High transport costs for products - When finished goods are expensive to transport, industries benefit from being near their market. For UK industries exporting to Europe, southern regions have become attractive for easier access.
- Industrial agglomeration - When products are sent from one industry to another, it helps to be located close by. This leads to industrial agglomeration, a concentration of linked industries in one area.