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.
Table of content
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1. 7 Location Factors for the Industry
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2. What are the 7 Location Factors for the Industry?
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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