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What are the 7 Location Factors for the Industry?

By Balaji

Updated on: February 17th, 2023

The seven location factors that affect an industry are the availability of raw materials, labour, capital, market access, a plentiful supply of electricity, modes of transportation like railroads and roads for the transport of finished goods and raw materials, and the availability of land. An industry is a collection of businesses that are connected by their main lines of business.

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  • 1. 7 Location Factors for the Industry (more)
  • 2. What are the 7 Location Factors for the Industry? (more)

7 Location Factors for the Industry

There are numerous classifications of industries in contemporary economies. Sectors are generally used to group together larger categories of industry classifications. The 7 factors of location that might affect an industry are the availability of raw materials, labour, capital, market access, a plentiful supply of electricity, modes of transportation and land.

Raw Materials

  • The business’s critical materials must be close to the source
  • The copper mining facility must be close to the ore wherever it is.
  • For instance, a potato farm and processing facility need to be close to one another (P.E.I)

Markets

  • A business that is close to its clientele.
    • Reduces costs and guarantees prompt delivery
  • In two situations, a company won’t set up shop close to its markets
    • Lactation is more significant when the market is widespread.

Availability Of Fresh Water And Power

  • For the manufacturing process, large factories need a good source of water.
  • For the cooling process, steel factories require large amounts of water.
  • Large amounts of electricity are required to fabricate aluminium, so the facility must be close to an electrical source.

Labour Supply

  • It is crucial to have highly skilled people (near universities and colleges)
  • Cost and accessibility are crucial
  • Affordable labour
  • Developing countries have eliminated access to inexpensive labour.

Transportation

  • For the product to reach the customer, a reliable transportation service (such as rail, water, or road) is required.
  • Difficult to evaluate in comparison to other factors
  • Depending on the businessperson or individual who carries out the idea.
  • Ships are more effective and affordable for bulk industries.

Government

  • Direct – The government promotes investment by providing benefits
    • Low taxes, affordable land
  • Indirect- enhancing infrastructure to draw in business
    • For instance, a new, rapid highway where a business will be located.

Summary:

What are the 7 Location Factors for the Industry?

The seven location factors that determine whether or not an industry is formed are land availability, access to markets, a plentiful supply of power, and the availability of modes of transportation like railroads and roads for the movement of completed goods and raw materials.

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