Discuss the factors of industrial location?
Answers
The two primary factors that influence industrial location are geographical and non-geographical factors.
The geographical factors are:
*Power supply – Regular power supply is essential for work to go on without interruption.
*Labor supply – Skilled labor is still in high demand although mechanization is on the rise.
*Access to market – Market must be easily approachable to dispose the goods.
*Raw materials – Location is based such that raw materials are readily available.
*Water – This is very important for the establishment of any industry.
*Communications – This primarily involves facilities like telecommunications and transport.
The non-geographical factors are:
*Capital – This is usually in the form of high investments.
*Government policies – This comprises financial incentives and grants received from the government.
*Banking facilities – Since there will be a lot of monetary transactions, an area with this facility is preferable.
*Insurance – This helps in providing compensation case of uneventful harm or damage to both employees and machines.