1. LOCATION FACTORS FOR INDUSTRIES

2. AVAILABILITY OF RAW MATERIALS
Factories need to be close to the raw materials needed for production, especially if they rely on resources that go bad (vegetables) or are expensive to transport (lumber)

3. LOCATION OF MARKETS
Good to be located near to the majority of a product’s customers
Minimizes delivery costs
Minimizes time to transport
Gives competitive advantage over others

4. AVAILABILITY OF FRESH WATER AND POWER
Most manufacturing operations require water and electricity
Best if water can come straight from a river or lake
Cheap electricity is important

5. LABOUR SUPPLY
In the past, companies sought large, low-cost labour force
Now companies locate in areas with universities, colleges and apprenticeship program to provide skilled labour
Low-cost, low-skilled jobs have moved to Mexico due to NAFTA and Canadian companies have had to adapt to compete

6. TRANSPORTATION Companies need fast and efficient transportation
Rail lines, large bodies of water, major highways are all important location factors

7. POLITICAL FACTORS
Local governments can make it easy or difficult for factories to operate so a good business climate is important when selecting a location
Direct decisions governments make include taxation, tax credits, land provision
Indirect decisions governments make include new highways, canals, environmental laws

8. CIRCUMSTANCE
Other less obvious location factors such as where the entrepreneur wants to live, location of other industries, opportunities for expansion