Raw materials The factory needs to be close
to these if they are heavy and bulky to transport.
Labour A large cheap labour force is
required for labour-intensive manufacturing industries. High-tech industries
have to locate where suitable skilled workers are available.
Energy supply This is needed to work the
machines in a factory. Early industries were near to coalfields. Today,
electricity allows more freedom.
Market An accessible place to sell the
products is essential for many industries:
those that produce bulky, heavy goods that are expensive to transport
those that produce perishable or fragile goods
those that provide services to people
The market is not so important for other industries such as high-tech whose
products are light in weight and cheap to transport. Such industries are said to
Natural routes River valleys and flat areas
were essential in the days before railways and motorways made the movement of
Transport A good transport network helps
reduce costs and make the movement of materials easier.
Site and land Most industries require large
accessible areas of cheap, flat land on which to build their factories.
Cost of land Greenfield sites in rural areas
are usually cheaper than brownfield sites in the city.
Capital This is the money that is invested
to start the business. The amount of capital will determine the size and
location of the factory.
Government policies Industrial development
is encourages in some areas and restricted in others. Industries that locate in
depressed ('Development') areas may receive financial incentives from the
government and assistance from the EU in the form of low rent and rates.