industrial location

Industrial Activity and Geographic Location

Industrial Revolution:• Britain

• Late 1700s

• Textile industry

• Diffused to European continent.

Factors Influencing Industrial Location

1. Raw Materials

• Access is important today. (Japan has few natural resources, but does have easy access.)

• Reduced cost of transporting has lessened the importance of proximity.

Bulk-reducing industries are oriented towards the raw

material.• Copper, for example. The ore is heavy, so

mills are located near the mines in order to “reduce the bulk” so that the final product costs less to transport.

2. Power• Early industries were located near coal

fields. (Pattern persists in many places.)

• Today industries are more widely dispersed because there are other sources of power and energy can be transported rather easily.

3. Labor

• Labor intensive industries (making clothing, assembling electronic parts) require cheap labor.

• Some industries require skilled labor. (Automobile assembly, precision instruments.)

4. Markets

• The importance of proximity varies, but some industries are market-oriented. Some examples are…

• --heavy and bulky items such as cement.

…bulk-gaining industries such as soft drinks and beer.

…perishable products such as bakeries, milk bottlers, and daily newspapers.

5. Transportation• The cost of transportation can affect other

variables.

• Port cities are attractive locations because a location here would cut down on transport costs. (Break-of-bulk points)

Mode of transportation

Ship?

Rail?

Truck?

Air?

Container systems have decreased the cost of

transportation.

6. Organizational and entrepreneurial setting

• Political stability

• Friendly government

• Lack of corruption

• Availability of capital

Role of Infrastructure• Industrial location decisions can be

influenced by the availability of supporting transportation and communication systems.

7. Agglomeration

• The clustering of support industries and a labor pool can encourage location to a certain place.

• Excessive agglomeration can lead to overcrowding, higher rents, and increasing costs of labor.

Tokyo

• Deglomeration is occurring in some locations. In the US, industry is becoming more suburban.

8. Environment• The film industry requires sunny climate.

(Hollywood and Bollywood)

• Aircraft manufacturers require a good climate

Amenity sites• Some industries locate in places that

provide amenities for their employees.

9. Locational Interdependence

Footloose Industries

• Footloose manufacturing industries have no strong locational preference--they are neither market- nor resource-oriented.

• They have more flexibility in terms of location because they are not so concerned about transportation costs.

• An example would be a high-tech industry such as computing.or IT companies that transmit information over phone lines.

Ubiquitous Industries are located everywhere in proportion to the

population.

Weber’s Least Cost TheoryWeber considered three factors:

Transportation (most important.)

Labor

Agglomeration

(Substitution Principle: If other costs go down, an industry can absorb a higher cost of transportation.)