The manufacturing industry is an economic activity concerned with the processing of raw materials and the manufacture of goods in factories.

Industries are factories established for processing raw materials and manufacturing goods.

industries are not everywhere, there are places where industries are concentrated while other places have no industries at all what causes this?

The following are factors influencing the choice of location of manufacturing industries.

Presence of raw materials

Raw materials are the ones to be transformed or processed into finished products. Raw materials include gold, tin, oil, uranium, bauxite, etc. When they are present, they attract industries to that place. 

Presence of Sources of energy

They provide the energy necessary for the functioning of machines in the industry. Sources of energy include oil, natural gas, uranium, wood, hydroelectric power, solar energy, bio gas, etc. Some of them are renewable while others are non-renewable.


Presence of a ready market

Industries are likely to be established in big cities and towns where people are concentrated.

People form the market for industrial products since they can buy industrial products and facilitate the production process to move on.

In the town, people have a good standard of living allowing them to buy products from industries. 

Availability of labor

Manufacturing industries require both skilled labor and normal labors. Areas, where people are concentrated, are suitable for the creation of manufacturing industries because such areas avail laborers for the industry. 

Government policy

The manufacturing industry develops from an area where the assistance of the local government can be found.

This assistance can include investments in terms of capital, even the location of manufacturing industries in the country, a search of the market outside for industrial products.

In most cases, many politicians create industries in their own areas (provinces) instead of distributing them equally in the country.

The role of the government can include controlling the way industries are working, places where they are located, the problems they cause in the environment, etc. 

Availability of Capital.

Capital is very necessary for the establishment of manufacturing industries. The capital shall be used for Purchasing the space where the industry shall be established, Paying workers., Paying transport and communication expenses.

The manufacturing industry requires enough capital for its establishment, that’s why many countries are not able to establish an industry for transforming their own minerals.

Site requirements

Some modern manufacturing industries require particular types of site. For example, an integrated steelworks needs a large area of flat land, while a chemical plant may need a site where it is possible to dispose easily of dangerous waste.

The iron and steel industry is likely to be found near water bodies or near mines of iron and coal to reduce transport costs.

Historical factors

Some areas are known to have started manufacturing industries a long time ago.

It is the case of the Ruhr basin in Germany, the great lakes region of USA with the largest motor vehicle industry; it is the town of Henry Ford who invented the Ford car.

Good transport network and communication

A good transport network facilitates the import of raw materials and the export of finished products from the industry to the market.

We hope that you have found this article useful. If you have additional points you would like to share with us on factors influencing the location of manufacturing industries, please add them to the comment below.


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IAM experienced geography teacher with more than three years of teaching and creating content related to geography and other subjects for both high school and college students. hope you will find the content of this website useful to your studies and daily life


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