1. 5.3 Factors That Influence the Location of an Industry,
World Geography 3200/02
5.3 Factors That Influence the Location
of an Industry,

2. 5.3.1 Examine the influence that site conditions and situation may have on the location of an industry. (a)
The location of an industry is influenced by two general sets of conditions.
1. Site Factors
2. Situation factors

3. 5.3.1 Site Factors
Site: The position of a structure or object in physical, local terms.
Site factors: physical cost factors associated with locating an industry in an area
Factors that influence the selection of the physical placing of industry include
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.
3. Energy: Industry is best placed near sources of energy are economical, and
reliable. Not as important today due to ability to transport energy over
long distances

4. 5.3.1 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.

5. 5.3.2 Compare the terms resource-oriented industry and market-oriented industry. (k)
Resource-Oriented Industry: A manufacturing industry that tends to locate near the
source of its raw material. In these industries the ration 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

6. 5.3.2 Compare the terms resource-oriented industry and market-oriented industry. (k)
Market Oriented Industry: An industry that tends to locate close to its market.
Industries that 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.

7. 5.3.3 Analyze the influence of weight-gain and weight-loss production on the location of an industry. (a)
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 cost more to ship.
Industry is located where shipping costs will be the smallest
Weight gain product: products that gain weight during production. (Pop, Beer, Paint)
Weight gain production is done near the market
Weight loss product: Products loose weight or bulk in the production process (Pulp and paper, ore smelting)
Weight loss production is done near the resource

8. 5.3.4 Describe the advantages of the agglomerating tendency. (k)
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

9. 5.3.5 Identify the characteristics of a labour force that make it attractive to industry.(k)
Labor force characteristics that attract business:
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.

10. 5.3.6 Explain how government subsidies on transportation influence the location of a given industry. (k)
Transportation subsidies affect the location of industry
Subsidies allow businesses to locate farther from the recourse.
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
Tax breaks affect the location of 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

11. 5.3.7 Draw conclusions about patterns in the distribution of highly industrialized areas on the earth’s surface. (a)
The highly industrialized areas on the earth's surface are concentrated in 4 definite regions:
North America, Western Europe, Japan, and Australia