Factors affecting the location of an industry Physical factors Land: The availability of flat land is an important factor influencing

g the location of an industry such as the steel or iron industry. It is easier and less costly to build a manufacturing plant on flat land. Most industries also try to find areas where there is room to expand once production has become successful Raw materials: Industries that use bulky raw materials tend to be located near their source in order to minimize transport costs Energy/power: Industries need power to operate their machinery. In the past industries relied upon steam power and tended to be located near coalfields. Today they use electricity that is generated in power stations and transmitted over long distances. This has released most industries from the need to be close to a source of power

Human and economic factors Capital: To set up an industry, capital in the form of money is needed to buy raw material, machines and transport equipment. Loans can be obtained from banks or in some cases from the governments Labour: The availability, skill levels, cost and working practices are all important factors in the location of industry. E.g. Textile industries requires many workers who need not be highly skilled and therefore tend to locate near densely populated areas where labour is plentiful. On the other hand, many of the quaternary industries in the UK are found near the university towns of Oxford and Cambridge as they want to attract skilled, knowledgeable graduates for their industry. Additionally, an area known for its strikes will not attract employers Transport: The presence of a good transport network will enable finished goods to be transported more quickly to the market (it is also easier to carry raw materials to the factories). An area which is well connected to other places by transport is usually more attractive to industry than one which is poorly linked Government: There are a number of ways in which government may influence the location of industry including: setting aside plots of land for industrial estates; banning industries that create pollution siting near to residential areas; and offering loans, tax exemptions and subsidies to companies willing to open factories in regions in need of development Markets: The presence of a ready market, that is, demand for the outputs, influences the location of some industries. Industries which produce items which are brought frequently such as drinks or bread are usually located near population centres where the market is. Industries such as the iron and steel industry whose outputs are used by other manufacturing industries usually find it convenient to be near such related industries e.g. motorcar assembly plants are often found close to iron and steelworks