Entrepreneur Jake Fox reveals the key factors a business needs to consider when selecting a new location.
- Accessibility. Does your business rely on frequent deliveries?
- Security.
- Competition.
- Business Rates.
- Skill base in the area.
- Potential for growth.
Below are several business location factors and questions you should ponder as you're choosing a location for your business.
- How much can you afford?
- What type of space do you need?
- What is your style?
- What other businesses are nearby?
- Can you grow with the location?
- How easy is the location to access?
Raw Materials AvailabilityDetermine the quantity and quality of raw materials your business needs and choose a location where it is readily available at economical prices. You will be surprised to know that the cost of raw materials is almost 50% of the total cost of the final product.
The top five major factors identified that may strongly influence international location decisions generally were: costs, infrastructure, labour characteristics, government and political factors and economic factors.
(i) Availability of Raw materials The factory needs to be close to the location of raw material if they are heavy and bulky to transport. For example, iron and steel industry is located near the source of raw material. Extremely hot, humid, dry or cold climate is not very conducive for industries.
SKILLED LABOUR: cheap and Skilled labour is essential for the location of industries. Glass industry at Firozabad and the sports goods industry in Jalandhar are located due to the availability of Skilled labour.
Three human factors which affect the industrial location are availability of cheap labour, availability of services such as consultants and financial advice and availability of market.
Industrial inertia is the factor irrelevant to the location of industries. Industrial inertia (geographical) describes a stage at which an industry prefers to run in its former location although the main alluring factors are gone.
Answer. Explanation: industrial location? Learn more about the following does not influence industrial location Raw material , Capital and power , Market and labour , Underground railway line.
Answer. The answer of this question is option B, cotton textile. There are two types of industries according to the production line-ups : 2) Non-heavy industries.
the industry which is the largest consumer of chemical is industries of polimers,synthetic rubbers ,resins and plastics.
Importance of manufacturing industry is as follows: It has helped in modernising agriculture by manufacturing tractors, tools and machines used in cultivation. It has reduced employment pressure on agriculture. It has brought in much needed foreign exchange.
Therefore, an optimum location for iron and steel industries should be near raw material sources. This is why most of the iron and steel industries are located either near coalfields (Bokaro, Durgapur, etc.) or near sources of iron ore (Bhadravati, Bhilai, and Rourkela).
From the given options, Gujarat is more famous for its cotton textile industry. Due to easy availability of raw material, humid climate for spinning and weaving, Ahmedabad city in Gujarat has emerged as a prominent cotton textile industrial centre which is also referred to as the "Manchester of India."
Answer. Answer: Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for location of the industry.
A separate branch of economics bordering with the discipline of geography which is known as Industrial location or Vocational Analysis, deals with the element of the locational or spatial decision making. A manufacturer has to consider several technical economic and institutional factors for this.
According to Weber, three main factors influence industrial location; transport costs, labor costs, and agglomeration economies. Location thus implies an optimal consideration of these factors.
Industrial planning is very important considering the environmental aspects and its effect on people. Therefore, various factories and industries should be located in such a place that the pollution caused by them doesn't affect the environment and people much.
(ii) Location of industry is the siting of a firm of an industry in a particular place while localization of industry is the concentration of firms producing similar products in an area. (ii) Regular supply of adequate power: will prevent disruption in production and reduce cost.
Industries can be classified in a variety of ways. At the top level, industry is often classified according to the three-sector theory into sectors: primary (extraction and agriculture), secondary (manufacturing), and tertiary (services). Over time, the fraction of a society's industry within each sector changes.
Industrial productivity is the result of the production process and economical use of financial investment, land, manpower, technology, equipment, and machinery. Factors affecting Industrial productivity are: Depending on the individual environments, the decision is to be made.
Localisation of industries is also called the geographical or territorial division of labour. This means that certain areas or towns come to specialise in the production of certain commodities. This form of specialisation is called localisation or centralisation of industries.
