SITE & SITUATION FACTORS IN MANUFACTURING OBJ: TO DEFINE SITE & SITUATION FACTORS & DETERMINE WHY THEY ARE IMPORTANT IN THE MANUFACTURING PROCESS

SITUATION FACTORS: INVOLVE TRANSPORTING MATERIALS TO & FROM A FACTORY PROXIMITY TO INPUTS: COST OF TRANSPORTING INPUTS > TRANSPORTING FINISHED GOODS BULK REDUCING INDUSTRY: WHERE INPUTS WEIGH MORE THAN THE FINAL PRODUCT MINERALS: METALLIC COMBO W/ OTHERS TO BECOME ALLOY FERROUS= W/IRON NICKEL, TIN, TITANIUM NON-FERROUS W/O ALUMINUM, ZINC, COPPER, PRECIOUS & RARE METALS

PROXIMITY TO MARKETS: IF COST OF TRANSPORTING FINISHED PRODUCT IS > THAN INPUT,S LOCATE FACTORY CLOSE TO CUSTOMER BULK GAINING INDUSTRY: MAKES SOMETHING THAT GAINS VOLUME OR WEIGHT SINGLE MARKET MANUFACTURERS: SPECIALIZED W/ 1 OR 2 CUSTOMERS PERISHABLE PRODUCTS: THOSE THAT ‘SPOIL’ ‘GET OLD QUICKLY’ OR ‘LOSE VALUE QUICKLY’

TRANSPORTATION: SHIP, RAIL, TRUCK OR AIR? *TRUCKS: QUICK & CHEAP; SHORT DISTANCE * TRAINS: NO STOPS, LONGER TO LOAD & UNLOAD, FURTHER DISTANCE *SHIPS: CAN CROSS OCEANS, CHEAP, LOADING & UNLOADING MANUAL OR MECHANICAL?, NON-PERISHABLE *AIR: MOST EXPENSIVE, FASTEST, WHEN IT ABSOLUTELY, POSITIVELY HAS TO BE THERE OVERNIGHT *MANY TIMES COMBO OF 2 OR MORE SO LOCATE AT BREAK OF BULK: LOCATION WHERE TRANSFER AMONG EXPORT MODES POSSIBLE SUCH AS SEAPORTS/AIRPORTS/RR HUB

SITE FACTORS: FEATURES OF A PLACE LABOR: MOST IMPORTANT & GOAL IS MINIMIZE COSTS ON AVERAGE 11% MFG COSTS LABOR INTENSIVE INDUSTRY: WAGES & OTHER COMPESNSATION PAID TO EMPLOYEES CONSTITUTE HIGH % OF EXPENSES CAPITAL: FUNDS TO ESTABLISH NEW FACTORIES OR EXPAND OLD ONES ABILITY TO BORROW $$$ IS KEY TO STARTING FACTORY LAND: SUITABLE FOR CONSTRUCTION & SITE & SITUTATION FACTORS KEY IN LOCATION

CHANGING SITUATION FACTORS: COPPER & STEEL OPTIMAL LOCATIONS MAY DIFFER FOR DIFFERENT STEPS IN PRODUCTION MINING & CONCENTRATION MUST BE CLOSE TO EACH OTHER BULK REDUCING SO TRANSPORTATION COSTS HIGH ON LIST OF PRIORITIES LOCATION NEEDS TO CONSIDER ENERGY SOURCE MANUFACTURERS CLOSE TO MARKETS ON EAST & WEST COASTS STEEL OVER TIME HAS SEEN CHANGE AS NEW SOURCES OF IRON ORE DISCOVERED PRODUCTION LOCATIONS CHANGED STEEL PRODUCTION NOW DOMINATED BY DEVELOPING COUNTRIES