Factors influencing the location of manufacturing industries

Manufacturing industry is economic activity concerned with the processing of raw materials and manufacture of goods in factories. Industries are factories established for processing raw materials and manufacturing goods. industries are not everywhere, there is 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 at 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, hydro electric 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 the products from industries. 
  • Availability of labor. Manufacturing industries require both skilled labor and normal labors. Areas where people are concentrated are suitable for creation of manufacturing industries because such areas avail labors for industry. 
  • Government policy. 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 location of manufacturing industries in the country, search of market outside for industrial products. In most cases many politicians create industries in their own areas (provinces) instead of distributing then 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 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.Manufacturing industry requires enough capital for its establishment, that’s why many countries are not able to establish 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. Iron and steel industry are likely to be found near water bodies or near mines of iron and coal to reduce on transport costs .
  • Historical factors: Some areas are known to have started manufacturing industries 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. Good transport network facilitates import of raw materials and export of finished products from the industry to the market.

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



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