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Factors affecting the location of industry include
- Capital / Finance
- Raw Materials
- Government Policy
- Energy / Power
- Labour / Skilled workers
- Heavy industries and high-tech industries need the most capital.
- It is more likely to influence the choice of country/region as opposed to the area within it.
- It is ideal for industries to locate close to raw materials as they are often cheap to buy and expensive to transport.
- Heavy industries need lots of land which is flat and cheap.
- Light industries will need less land and may be more concerned about how the factory looks to impress clients.
- Heavy industries need lots of energy.
- Hi-tech light-industries may need to locate close to universities/colleges as they often require skilled workers.
- Heavy industries may choose to locate in areas of high unemployment as it is easier to employ people.
- The higher the capital investment, the more attractive a government loan becomes.
- Government incentives are often reserved for areas of high unemployment.
- If the products that a factory produces are large and heavy, it is easier to locate close to markets where the goods are likely to be sold.
- Transport costs are important for all industries as it can become very expensive to transport certain goods.
- The use of the internet and email has meant that more people can work from home and there is a greater freedom for a location worldwide.
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