Factors that influence the Location of Industry

What is Industry? Industry, refers to types of employment, organized by sector (type of industry) where people work. Many types of industry exist in Canada and around the world. - Government (federal, provincial) - Mining, forestry, fishing, - Tourism, - Auto Manufacturing Industry - Transportation Industry ….. Just to name a few……

Determining the proper location for an industry is very important to the success of a company. If the location, environmental, social or economic conditions are not just right, a company is likely to be unsuccessful.

What things do you feel would be important when deciding to locate a business? FACTORS

Raw Materials Government Incentives There are 6 main factors to consider when locating a business/ Industry Raw Materials Government Incentives Market Transportation Energy Labour Force Together, these factors determine where and if a business can succeed to make a profit. If one or more of these conditions are not ideal then the business/industry will suffer

Raw Materials Are the raw materials you require available? -If the raw materials you need are too far from your business, the cost may be too high to transport them, cutting into your profit. Locating near your source of raw materials is necessity! if you make fertilizer, you want to locate you business near a source of potash.

Labour Force: Are there people available and trained to provide labour? If your product requires manual labour you need to locate your factory in an area populated with people willing and trained to perform the work. "Made in China" sound familiar? CHINA: Huge Labour Force + low wages= $$$ in company pocket BUT!: This takes jobs away from Canadians

Transportation: Are you close to major transportation networks? Water, Rail, Road? If you build a product that must be transported, there must be a network in place for you to move those goods easily/ cheaply. It is cheap to transport goods by container ship. That is why we can have our goods made on the other side of the world and then transported here. If it were not cheap that would not be an option.

Market: How close are you to your market? Customers? If you locate your business/factory/industry near the people who are going to buy your product, you save money on getting it to your consumers. It is usually cheapest to buy local The further away your food comes from , the more expensive it is!

Location of Markets A company will often chose a particular location for its manufacturing because its market – majority of its customers is situated nearby. Advantages Delivery costs are low and delivery times are short giving them an advantage over their competition Many large companies use a delivery system know as Just in Time Delivery – Promise upon receipt of an order to deliver the correct quantity of a particular item or part at the exactly the time the customer needs it.

Energy: Does your business require a great deal of Electricity? If so, Where can you find the cheapest power? Most aluminum and copper smelters, pulp and paper mills need a great deal of electricity to run. They locate near cheap sources. Most smelting and paper operations are located in northern Ontario and Quebec. Why? many hydro-electric dams that offer cheap power.

Government Incentives: Is anyone offering you a deal if you locate your business in their area? Generating new business is a big deal for politicians/ the government. When cities or provinces are fighting to draw a particular business into town they offer up deals or incentives. The Ontario Government gives "deals" to many types of companies that offer to bring work to Canadian cities. An example is car makers. Deals include, low taxes or cheap power. Simple done to draw industry to the province or country.