FACTOR AFFECTING LOCATION OF INDUSTRIES
FACTORS AFFECTING LOCATION OF INDUSTRIES
Many factor are considered before industries are located in any area. These factor include :-
PROXIMITY TO SOURCE OF RAW MATERIALS
Bulky products like cement should be located close to the source of raw materials to reduce cost of transportation. Perishable goods like fruit, palm oil industries e.t.c. Should also be located near their raw materials.NEARNESS TO MARKETS
There should be ready market for the product of any industry to be sited in a place. Fragile good like glass, bulky goods like cement and other perishable goods should be located near the markets. The nearness to the market will reduce the cost of transportation and also meet high demand by consumers.
Such industries located or directed to wards the market are called market oriented industries.
3.NEARNESS TO SOURCE OF POWER
In this aspect there should be enough, ready and dependable source of power. Sources of power that could be by electricity, coal, thermal, petroleum product e.t.c
4.AVAILABILITY OF CAPITAL
There should be enough capital to purchase industries inputs or set up industries. Entrepreneur should have access to loans. Fixed capital should also be easily acquired.
Industries which use heavy machines or require large capital for their operations are called capital intensive industries.
5.POLITICAL STABILITY
A stable government encourage industries growth. It is also attract foreign investors or political instability scares off foreign investors.