2.  Survival of a company can depend on choosing just the right location for the factory  7 important location factors can affect why manufacturers locate where they do.

3. RAW MATERIALS: SOMETHING TO PROCESS  Manufacturing industries want to locate near the natural resources they will use  The Canadian Shield has minerals and timber, this is very useful for manufacturing industries in S. Ontario and S. Quebec  e.g. Pulp and paper mills- located in forest regions  e.g. Food- processed at canneries, and/or close to the source  e.g. Fish and seafood- processing plants along the coast  Therefore, this keeps the cost down, makes more economic sense, and helps preserve the food

4. ENERGY- POWER TO MAKE THINGS HAPPEN  Many manufacturing industries need lots of cheap power  Many rivers from the Canadian Shield provide Hydro-electric energy (CHEAPLY!)  Energy timeline: animal power, slaves, winds, waterfalls, steam engine, electric power

5. TRANSPORTATION- MOVING THE GOODS  Essential throughout the whole process  Manufacturing industries will need fast, reliable and inexpensive transportation  Water, rail, road are used for bulky raw materials and finished products  Air for fast transportation of light or perishable products  Busiest transportation route in Canada is from Quebec City to Windsor (Windsor to Quebec Corridor)

6. LABOUR- PEOPLE POWER FOR THE PROCESS  Manufacturing industries need both skill and unskilled labour  Canada’s largest labour force is found in S. Ontario and S. Quebec  Unemployment is a serious problem for labour force because of foreign competition and automation

7. MARKETS- INDUSTRIES NEED CUSTOMERS  “market” refers to people who are available to buy the goods or service of a company  Could also be considered the first locative factor (locate where there is demand)  The larger the population, the great their purchasing power  Many Industries locate in S.Ontario and S. Quebec simple because these regions hold approx. 50% of Canada’s population

8. Governments: often do everything they can to attract businesses Political  Local governments will often provide interest-free loans to start a business in their city  They will often give reduced land taxes for several years  Cities like to have a variety of basic industries in order to ensure greater economic stability

9. Circumstance- History or By Chance development Circumstance  Areas that have been settled in for a long time tend to draw new industries to their community (stability)  In early years, the N.E USA was developed as an industrial base, it was cheaper to send finished products west rather that to develop a factory in the west  Because there was a strong industrial base in the N.E. USA, it attracted similar development in S. Ontario and S. Quebec