Question

Describe the factors that affect the location of industries.

Answer 1

  

Major concentrations of modern manufacturing have flourished in a few places. These cover less than 10 per cent of the world’s land area. These nations have become the centres of economic and political power. Industries maximise profits by reducing costs. Therefore, industries should be located at points where the production costs are minimal. Some of the factors influencing industrial locations are as under Access to Market: The existence of a market for manufactured goods is the most important factor in the location of industries. ‘Market’ means people who have a demand for these goods and also have the purchasing power (ability to purchase) to be able to purchase from the sellers at a place. 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.

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. Access to Labour Supply: Labour supply is an important factor in the location of industries. Some types of manufacturing still require skilled labour. Increasing mechanization, automation and flexibility of industrial processes have reduced the dependence of industry upon the labours. Access to Sources of Energy: Industries that 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.

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. Communication is also an important need for industries for the exchange and management of information. Government Policy: Governments adopt ‘regional policies’ to promote ‘balanced’ economic development and hence set up industries in particular areas.
Access to Agglomeration Economies/ Links between Industries: Many industries benefit from nearness to a leader-industry and other industries. These benefits are termed agglomeration economies. These factors operate together to determine industrial location.