World Geography 3200/02 Factors That Influence the Location of an Industry, Factors That Influence the Location of an Industry,

Site and situation The location of an industry is influenced by two general sets of conditions. 1. Site Factors 2. Situation factors

Site Factors Site: The position of a structure or object in physical, local terms. Factors that influence the selection of the physical placing of industry include Site factors: physical cost factors associated with locating an industry in an area 1.Nearness to resource: Industry using heavy materials should be placed near the resource to cut down on the cost of shipping. 1.Nearness to resource: Industry using heavy materials should be placed near the resource to cut down on the cost of shipping. 2. Land: Industry looks for inexpensive land. Land needs to be flat, well drained, and dense enough to support heavy structures. 2. Land: Industry looks for inexpensive land. Land needs to be flat, well drained, and dense enough to support heavy structures. 3. Energy : Industry is best placed near sources of energy that are economical, and reliable. Not as important today due to ability to transport energy over long distances 3. Energy : Industry is best placed near sources of energy that are economical, and reliable. Not as important today due to ability to transport energy over long distances

Situation factors Situation: The position of a phenomena (town, industry, building) in relation to other phenomena Situation Factors: the location of a place relative to its surroundings and other places. Factors included in an area's situation include the accessibility of the location, the extent of a place's connections with another, and how close an area may be to raw materials if they are not located specifically on the site.

Compare the terms resource-oriented industry and market-oriented industry. Resource-Oriented Industry: A manufacturing industry that tends to locate near the source of its raw material. In these industries the ratio of the weight of raw materials used in the manufacture of the product to the weight of the finished product tends to be high. Resource-Oriented Industry: A manufacturing industry that tends to locate near the source of its raw material. In these industries the ratio of the weight of raw materials used in the manufacture of the product to the weight of the finished product tends to be high. Example: cost of shipping bulk logs is greater than the cost of shipping finished paper. Thus pulp and paper mills are set up near the resource. This makes the pulp and paper industry a resource oriented industry Example: cost of shipping bulk logs is greater than the cost of shipping finished paper. Thus pulp and paper mills are set up near the resource. This makes the pulp and paper industry a resource oriented industry

Market Oriented Industry: An industry that tends to locate close to its market. Industries locate near the market if the cost of transport of the finished goods to the customer is a major part of the selling price. One example is the brewing industry where large, bulky quantities of water are used to make the finished product. Market Oriented Industry: An industry that tends to locate close to its market. Industries locate near the market if the cost of transport of the finished goods to the customer is a major part of the selling price. One example is the brewing industry where large, bulky quantities of water are used to make the finished product. Example: The cost of shipping finished pop drinks is higher than the cost of shipping the ingredients and adding them to water. Thus the production of pop drinks is done near the consumer. Example: The cost of shipping finished pop drinks is higher than the cost of shipping the ingredients and adding them to water. Thus the production of pop drinks is done near the consumer. Resource-oriented and market-oriented industries

Weight-gain / Weight-loss production and the location of an industry. If a product changes in weight during the production this will have an influence on where the industry will be located If a product changes in weight during the production this will have an influence on where the industry will be located The impact on location comes from the cost of shipping and its relation to weight of the product. i.e if something is heavier it costs more to ship. Weight gain production: products that gain weight during production. Examples: Pop, Paint. Weight gain production: products that gain weight during production. Examples: Pop, Paint. Weight gain production is done near the market Weight loss production: Products lose weight or bulk in the production process Examples: Pulp and paper, ore smelting. Weight loss production is done near the resource Industry is located where shipping costs will be the smallest

The Agglomerating Tendency. Agglomerating tendency: A pattern of economic activity in which industries concentrate in the same location. It may also apply to concentrations of particular commercial shops and services Agglomerating tendency: A pattern of economic activity in which industries concentrate in the same location. It may also apply to concentrations of particular commercial shops and services Ex. Car factory & tire factory. How does each benefit by being located close to each other? 1. Market / Supply is close by. 2. Transportation costs are reduced. 3. Costs of services like waste disposal and security can be shared Ex. Car factory & tire factory. How does each benefit by being located close to each other? 1. Market / Supply is close by. 2. Transportation costs are reduced. 3. Costs of services like waste disposal and security can be shared

Labour Force Characteristics that make it attractive to industry. Labor force characteristics that attract business: 1.Wages expected: lower wages in some developing countries like Mexico, and the Philippines attract manufacturers 2. Training: highly skilled labourers can attract businesses that require welders, mechanics, carpenters etc. 3. Benefits (EI, Pensions etc); lower costs of employment insurance, pensions, etc. can attract business just as easily as low wages. 4. Availability; a high unemployment rate might attract business, especially if large numbers of workers are required.

Government subsidies and their influence on the location of a given industry. Provinces like Newfoundland have attempted to attract business by offering tax breaks. The company obtains a financial break while the province gets the advantage of putting people to work. Provinces like Newfoundland have attempted to attract business by offering tax breaks. The company obtains a financial break while the province gets the advantage of putting people to work. Transportation subsidies affect the location of industry Subsidies allow businesses to locate farther from the resource. Subsidies allow governments to encourage industry in rural areas. Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf of St. Lawrence Subsidies allow governments to encourage industry in rural areas. Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf of St. Lawrence Tax breaks affect the location of Industry.

Patterns in the distribution of highly industrialized areas on earth North America, Western Europe, Japan, and Australia The highly industrialized areas on the earth's surface are concentrated in 4 definite regions: