3.3.2 Distribution of Industrial Zones

Distribution & Location of Factories & Industrial Zones

Distribution & Location of Factories & Industrial Zones

• Every day companies make decisions about where to locate their industries

• Different industries require different inputs,

• But they also require them to be readily and cheaply available 

• Most companies look for the least cost but highest profit location

• Manufacturers need to find the optimum location that will produce maximum profit

• This depends on a number of factors - physical, human and economic

Physical factors

• Raw materials - industries that need heavy or bulky materials, will locate as near as possible to these materials

• Site - availability and cost of land is important. Large factories need flat, well-drained land with or without the potential for expansion later on

• Climate - industries such as aerospace and film benefit from sunnier climates. Good climate also reduces energy bills and a better quality of life

• Energy - energy demanding industries may relocate to countries/areas with readily available or cheaper energy

• Natural routeways - harbours, motorways, airports and railways provide good locations for ports and industrial complexes, which create good access points for inputs but also outputs

• Water supplies - some industries (paper and cotton processing etc.) require a lot of water in their manufacturing and so need to be near a reliable water supply such as lakes, rivers etc. 

Human and economic factors

• Capital - some areas naturally attract inward investment as the returns will be higher

• Markets - location and size of the potential market is a major influence for some industries

• Government influence - incentives, grants and policies can make areas attractive for industries to invest in

• Transport - cost of transport is expensive and accessibility for easy access helps to reduce those costs. Central to motorways, railways, ports and airports can influence where industry locates

• Communications - being able to communicate effectively and quickly with customers and suppliers is vital to successful manufacturing

• Labour force - quality and cost of labour is central to effective manufacturing, having a reliable workforce is necessary, but also mobility, turnover and reputation is also a factor

• Quality of life - highly skilled workers will prefer areas where the work/life balance is good

High-tech industry

• High-tech companies are involved in research and development, aerospace technology, weapons guidance systems, medical robotics, software, computer hardware, and other technically advanced products

• High-tech industries are usually group together in science parks

• Usually close to the university or a research centre with good security systems

• Purpose built to encourage research and development (R&D), high-tech industries and other quaternary activities

• Close to transport networks (including airports) to allow for knowledge transfer

• Further away from housing estates and retail parks to reduce sound, air and visual pollution 

Changes to manufacturing and location over time

• Raw Materials = sources of raw materials often run out

  • Manufactures will move in response

  • Infrastructure means business not tied to energy centres –coalfields etc.

• Rising costs = wage levels / laws etc, means costs go up in MICs so work moves elsewhere (e.g. manufacturing)

• Transport = commuting & migrating easier because there are now fewer barriers to travel

• Competition = fewer people are needed to complete work now, e.g. banking uses ICT

• Technology = advances in ICT means more work from home, air travel, etc.

• Outsourcing = saves money, work sent elsewhere to save costs (e.g. call centres)

• As an economy advances, the proportion of people employed in each sector changes

• Places like the UK and the USA are ‘post-industrial societies’, where most work in the tertiary or quaternary sectors

• Places such as China and India are ‘industrial societies’, where many people work in the secondary sector

• Bolivia and Mozambique are ‘pre-industrial societies’, where most people work in the primary sector

Case Study - Manufacturing Industry: Pakistan’s Iron & Steel Industry

Case Study - Manufacturing Industry: Pakistan’s Iron & Steel Industry