SLCSS/Form 5/GEOG/Chapter B9/P.1

Chapter B9 Factors affecting Industrial Location

9.1 Manufacturing Activities as a System

A)What is Manufacturing?

Manufacturing involves the transformation of raw materials into products.

B)System Approach of Manufacturing

9.2 Factors Affecting Industrial Location

A)Physical factors

Types of factor / Aspects of the factor / Resulting Effects of industrial location
Land / Large (small) and flat (steep) piece of land / Favour large-scale / heavy(small-scale / light) industry
Cheap land / Attractive / Unattractive to industrial development
Raw materials / An industry uses lots of heavy, bulky, perishable or fragile raw materials / Location: near to the sources of raw materials
An industry uses light raw materials / Location: far from the sources of raw materials
Power resources / The nature of coal:
Heavy and bulky; therefore, difficult to transport / Location: near to the sources of power
The nature of HEP:
Easy to transmit over long distance / Location: far from the sources of power
The nature of oil
Mobile, transported by oil tankers and pipelines / Location: far from the sources of power
Water / It is important for:
Cooling purpose
Washing
Raw materials / The pull of waterfront location decreases since water is transported via water pipes.

B)Human factors

Types of factor / Aspects of the factor / Resulting Effects of industrial location
Labour supply / Quantity (amount) of labour / Labour-intensive industries tend to locate near a cheap and abundant labour supply, e.g. in big cities in developing countries
Quality (skill) of labour / Technology-intensive industries which require skilled labour and so, tend to locate in modernized areas, e.g. in big cities in developed countries
Transport / It links:
the sources of raw materials and power resources to the factory
products from the factory to the market / Industries tend to locate at place with good transport.
Size, weight, perishability, fragility and value of raw materials, power resources and products affect the types and costs of transport used.
Markets / Number of potential customers / Factories prefer a location with many potential customers, large purchasing power and great demand for the product.
Purchasing power of them
Demand for the product
Government / Incentives provided by government:
Low taxes
Low interest loans,
Cheap land,
Infrastructure,
Tax holiday / This factor is more important in planned economies.
E.g. China
Restrictive measures:
High taxes
High land prices
Land use zoning
Tight pollution controls
Protectionism measures
Historical factors / Industrial inertia
Why?
Large building and machines are difficult and uneconomical to move
Good infrastructure has been developed
Lots of skilled labour has been trained.
Agglomeration economies have been obtained
Local markets are open.
Linkages with local manufacturers have been set up.
Specialization in different stages of product has been developed.
Subsidiary industries
Research facilities have been mutually developed. / The mobility of factories is lower.
Behavorial (entrepreneurial) factors / The owners who have:
certain experience
knowledge
in running certain types and choosing the location of business. / e.g. in the 1950s, entrepreneurs from Shanghai with capital set up the textile industry in Hong Kong.

9.3 Operation of Locational Factors in Different Industries

Types of oriented industry / Characteristics / Examples
1.Raw material –oriented / RM are heavy and bulky
perishable
easily damaged
dangerous for transport to long distance / Sugar refining
2.Power-oriented / require abundant and cheap supply of power / Aluminum smelting
3. Labour-
oriented / labour intensive
usually light industry / Garment industry
4. Market-
oriented / products are heavy and bulky
perisable
easily damaged / Baking industry

5) Footloose –industry

It is no strong locational preference or specific location requirements.

Therefore, they can locate anywhere they like.

Very often, they are attracted to an industrial agglomeration, because:

Presence of infrastructure / Lots of already trained skilled labour
Presence of local markets / Linkages with local manufacturers
Specialization in different stages of production / Development of subsidiary industries
Mutual development of research facilities / Low transport cost because they locate near to user- or supplier-industries