INDUSTRIAL LOCATION IN PRACTICE-

the geographical site or sites selected by a firm to perform its economic functions.
General Factors affecting the choice of a new location/industrial location:

1. Labor-is the amount of physical, mental, and social effort used to produce goods
and services in an economy

a. Quality and quantity

b. Does
not

necessa
rily equate to a high degree of unemployment
 c. Competition of local firms on labor supply and quality of that supply

2. Transport and communications- Transport facilitates the movement of people, goods,

services, and resources and improves access to local and international markets.
Communication is the passing of information or data from one source to another.

a. Good access to the main market

b. Good access to linked producers

c. Good access by road, rail, and air

3. Site and premises: “cut price” rentals or “built to last”- an area outside of a town or city
that is designed especially for factories or offices. It means any place where the main
activity carried out is an industrial process that would be subject to specific national
health and safety regulations.

a. Provision of ready-built factories on fully serviced sites

 b. Constraints to innovation & efficiency for the occupant firms

4. Government aid: incentives- means all services, benefits, medical care, financial
assistance, and any other assistance of any kind that may be provided by any county,
state, or federal agency to, or on behalf of, a Beneficiary.

a. Capital cost grants

b. Subsidies to variable costs

c. Tax and depreciation allowances

d. For local aid: it will be more organizational rather than financial, i.e., housing
requirements and planning permission

5. Environmental factors- Environmental factors significantly impact human livelihoods,

health, and well-being.

a. Climate, landscape

b. Social infrastructure: housing, school, roads, town center, etc.

c. Agglomeration of economies - i.e., availability of ancillary industries