- Availability of coal/source of power: The Ruhr region is located on the largest coalfield in Europe. The coalfield extends from river Rhine to Hamm (east), river Lippe (north) and river Wupper (south). The ready supply of coal, which was a basic raw material, has led to the development of the iron and steel industry.
- Availability of Iron Ore: Iron ore was available from the onset of the industrialization of the region within the Ruhr valley and the Sieg (Sieger) field to the South. However, with the intensification of the production of iron and steel in the region, Iron ore is now imported from Sweden, U.S.A. and Alsace-Lorraine (France)
- Availability of Limestone: Limestone is a necessity in the iron and steel industry. The Ruhr region is advantaged because limestone is also found within the locality.
- Central Geographical position: The Ruhr region is centrally located in Europe. It has a direct connection with all parts of Europe by water, railway, air, and road. The Rhine River is navigable from its mouth in the North Sea up to Basle in Switzerland. Iron ore from Alsace-Lorraine is transported downstream to Duisburg for use in the Ruhr region. Products are transported easily downstream through the river to Rotterdam and afterward to the rest of the world. Canals connect the Ruhr region with Eastern Europe and the North Sea. Other canals like Mitteland Canal, which connects it at Berlin, are also used.
- Availability of Capital: Capital accrued from other industries like coal is invested in the iron and steel industry. Old rich companies also provide ready capital for development in the region. Such old companies include the Ruhr Kohle A.C. and the Krupp group.
- Availability of ready market: Products fro the iron and steel industries of the Ruhr region have a ready market within the locality as well as in other parts of the world. The Ruhr conurbation of large industrial towns like Duisburg, Bochum, Essen, Dortmund, etc. forms an immediate market. The products are also exported to other countries especially in Latin America, Africa and Asia.
- Political stability. After the end of the Napoleonic wars and after the unification, the area made more cooperative efforts to achieve industrial development, under the guidance of the German ruler Otto Von Bismarck.
- Technology. Technological developments also affected industrial patterns of the Ruhr area. The development of mining technology promoted the northward progression of the mining industry and brought light to the northern cities.
- Tradition. Long-standing traditions survived and even determined the industry in some cities during the nineteenth century. Krefeld prospered with silk industry. Metal products of international renown in Remscheid and Solingen were also results of the long local tradition and craftsmanship.
- Entrepreneurs. The pioneering work by a number of entrepreneurs led to improvements of the Ruhr area as a whole. Friedrich Krupp established Krupp cast steel factory in Essen in the early nineteenth century. Eberhard Hoesch founded Hoesch, one of the most powerful companies in Dortmund. Jacob Mayer’s Bochumer Verein was renowned for the cast steel goods. The Haniel family prevailed in the coal trade in Ruhrort
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