What are the 7 location factors for the industry?

By Ritesh|Updated : September 3rd, 2022

The seven factors that affect the location of industry are the availability of raw materials, labor, 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.

7 Location Factors for the Industry

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)


  • 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 aluminum, 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 labor
  • Developing countries have eliminated access to inexpensive labor.


  • An effective transportation service (such as rail, water, or road) is essential for the product to reach the customer.
  • Difficult to assess compared to the other elements
  • Relies on the businessperson or person who implements the idea.
  • For bulk industries, ships are more affordable and effective.


  • 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


What are the 7 location factors for the industry?

The seven 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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