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Location Factors for Manufacturing. 1. Availability of Raw Materials Manufacturers need a reliable source of raw materials For some companies it is extremely.

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Presentation on theme: "Location Factors for Manufacturing. 1. Availability of Raw Materials Manufacturers need a reliable source of raw materials For some companies it is extremely."— Presentation transcript:

1 Location Factors for Manufacturing

2 1. Availability of Raw Materials Manufacturers need a reliable source of raw materials For some companies it is extremely important to locate near the raw materials. (Ex fruits/veggies, bulky raw materials)

3 Availability of Raw Materials

4 2. Location of Markets Companies want to be located near their custumers. So products can be delivered faster and delivery costs can be minimized

5 Location of Markets

6 3. Labour Supply A company must consider the availability/cost of labour It is difficult for CAN to compete with countries that employ low cost labour Therefore, manufacturers in CAN are more likely to employ skilled workers

7 Labour Supply

8 4. Availability of Freshwater/Power This causes many manufacturing companies to locate near lakes and rivers

9 Availability of Freshwater/Power

10 5. Transportation Depending upon the type of product being manufactured, different companies rely on different sources of transportation Ex, Steel- ships or trains Electronics- Planes or trucks

11 Transportation

12 6. Political Factors Gov’ts can make decisions that will help to attract new business to a city/province/country Direct Have a direct effect on the company (ex reduced taxes) Indirect Have a indirect effect on the company (ex new highway)

13 7. Circumstance A situation where a certain product suddenly becomes high in demand. Gives a company the opportunity to expand or move.


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