Factors of industrial location . Types of industries . Primary industry Secondary industry Tertiary industry Quaternary industry In this section, we are only confined with the “manufacturing industry”. Primary industry usually known as handicrafts.
Factors of industrial location
1. Initial Processing industries :
For example: (1)sugar milling (2)dairy processing (3)fruit and vegetable canning (4)meat packing (5)grain milling (6)brewing and wine making etc.
Some Basic Problems of Industrial Location
Not evenly distributed around the earth, with some manufacturing industries typically concentrated in certain localities.
1. differences in scale or level of study:
Other may want simply “satisfactory” profit and safe existence.
Raw materials can take many forms:
A. If the lose a great deal of weight or bulk during the production process, the factories will be attracted to sources of raw materials because transport cost can be saved.
e.g. sugar is only 1/8 of the weight of sugar
g. hazardous or dangerous materials which require to travel long distance
A marked decline in the locational pull or attraction of raw materials on industrial location because of:
1. improvements in transport
technology – which allow raw materials to be transported over longer distances at lower costs (cheapening of transportation).
2. advances in production techniques – which allow the same amount of products to be produced forma reduced amount of raw materials.
3. greater attractiveness of the market location.
4. advantages of agglomeration of manufacturing industries.
5. A thick syrup, called molasses (糖蜜)is also spun off in this final centrifuging and this is then sent to distilleries to be made into industrial alcohol, rum (酒)
6. It is also sold to farmers for stock feed and fertilizer.
1. Perishability of harvested cane
transshipment must be avoided.
2. Cane, is an extremely bulky, and cumbersome crop of low specific value, i.e. 'value per unit weight is low.
Highly concentrated into a few major mining centres :
In the advanced nations (industrial regions)
North-eastern part of the USA and Canada, the-west coast of the USA, western Europe, European USSR and southern Japan.
- The concentrate from the mills has only about 30 to 40% copper content.
- therefore, the purpose of smelting is to remove the remaining worthless impurities.
- From 2 or 3 tonnes of concentrate, the smelters produce about 1 tonne of blister copper, which is over 99% pure. Thus this stage has weight loss ratio of approximately 60%.
A market location is attractive to many kinds of industries, particular consumer goods industries, and likewise many capital goods industries.
Industries have become market-oriented for the following reasons :
(i) Bulkiness of the products:
between producer and consumer. E.g. newspaper
bulky) and transport cost will increase the cost
e.g. farm machinery industry in US is located near
to mid-west while the cotton picking machine is
produced in the south.
MARKET, therefore, IS GETTING MORE AND MORE IMPORTANT IN INFLUENCING THE LOCATION DECISION OF ENTREPRENEURS.
5.Market refineries are more flexible in the sense that they can accept the crude oil from competing regions, while source refinery is virtually tied to using oil from a single source.
This is a notable trend for modern industry to seek a market location, and this is true of the oil-refining industry. The strength of the attractive power of the market should be in no doubt to anyone.
R I M
1. At either R or M, only 1 set of terminal
costs is incurred.
2. At any intermediate site I between R and
M, 2 sets of terminal costs are incurred,
one for the procurement of raw materials
and one for the distribution of finished products.
3. Since a lot of terminal costs could be saved, it
would be cheaper to locate the manufacturing
plant at either R or M than at any intermediate
- for manufacturing plants the consignment
of which requires transhipment, i.e.
transfer from one carrier to another, e.g.
from railway to sea transport).
fragile than the new material.
handling facilities, e.g. refrigeration.
carriers and trains whereas the finished
e.g. furniture-making/ manufacture of washing machines, processing of agricultural products into chilled/frozen foods.
4. The role of Labour
Labour is needed to operate any industrial plant but the type and amount vary from industry to industry.
In some industries, labour input is a large cost item while other may be of minor importance.
Labour intensive ratio =
number employed /value of shipment from factory
a. Fixed capital– land, construction of factory building, machinery for processing and social capital (social services) of the area, including public housing, school, hospital. It also include physical infrastructure (e.g. road, railways).
b. Working capital - It is needed to finance the costly factory system, to pay wages, purchase stock of material, component parts, finished product not yet sold and money (money capital)
A known resources may not be used because of its inaccessibility, e.g. oil in Siberia.
Government exhibits its influence through
between industrial landuse and other e.g. residential, educational, recreational has
led the city government to introduce zoning
(a) In countries of planned economies, e.g. China,
the Chinese government has established a
large petroleum refinery and petrochemical
works at Urumqi in Xinjiang in order to achieve
regional economic balance and industrial
(b) In countries of mixed economies, e.g. Britain
and France, the governments can establish
nationalized plants in depressed regions and
established new factories such as Ford
at Halewood (near Liverpool), British Leyland
at Bathgate (near Edinburgh), etc.
industries in order to attract foreign investment
and the establishment of technology-intensive
e.g. By granting tax concessions (low rates on
e.g. By imposing tariffs on imported finished products or raw materials; and imposing quotas on imports
These may :
Case Study (1) :CHINA'S IRON AND STEEL INDUSTRY AFTER 1949
Case Study(2): Government influence on industrial location in Australia
Please refer to the online notes
a. The increasing scale of manufacturing factory demands for a more spacious site. A lot of industries take a sub-urbanized location, e.g. motor vehicle assembly, oil refinery
While smaller labour-intensive industry are in residential buildings or flatted-factory building.
b. Physical demand of the industry
e.g. ship building demands a water frontage.
Land prices vary from region to region. Rental will normally decrease from the city center. But, it is determined by the market Mechanism.
industries are located at the place
where they were set up even though
the favourable factors have been