Location Factors for Location Factors for ManufacturingManufacturing

1. Availability of Raw Materials1. Availability of Raw Materials

Manufacturers need a reliable Manufacturers need a reliable source of raw materialssource of raw materialsFor some companies it is For some companies it is extremely important to locate near extremely important to locate near the raw materials.the raw materials.

(Ex fruits/veggies, bulky raw (Ex fruits/veggies, bulky raw materials)materials)

Availability of Raw MaterialsAvailability of Raw Materials

2. Location of Markets2. Location of Markets

Companies want to be located Companies want to be located near their custumers.near their custumers.So products can be delivered So products can be delivered faster and delivery costs can be faster and delivery costs can be minimizedminimized

Location of MarketsLocation of Markets

3. Labour Supply3. Labour SupplyA company must consider the A company must consider the availability/cost of labouravailability/cost of labourIt is difficult for CAN to compete It is difficult for CAN to compete with countries that employ low with countries that employ low cost labourcost labourTherefore, manufacturers in CAN Therefore, manufacturers in CAN are more likely to employ skilled are more likely to employ skilled workersworkers

Labour SupplyLabour Supply

4. Availability of 4. Availability of Freshwater/PowerFreshwater/Power

This causes many manufacturing This causes many manufacturing companies to locate near lakes companies to locate near lakes and riversand rivers

Availability of Freshwater/PowerAvailability of Freshwater/Power

5. Transportation5. Transportation

Depending upon the type of Depending upon the type of product being manufactured, product being manufactured, different companies rely on different companies rely on different sources of transportationdifferent sources of transportation

Ex, Steel- ships or trainsEx, Steel- ships or trainsElectronics- Planes or trucksElectronics- Planes or trucks

TransportationTransportation

6. Political Factors6. Political FactorsGov’ts can make decisions that will Gov’ts can make decisions that will help to attract new business to a help to attract new business to a city/province/countrycity/province/country

DirectDirectHave a direct effect on the company Have a direct effect on the company (ex reduced taxes)(ex reduced taxes)

IndirectIndirectHave a indirect effect on the company Have a indirect effect on the company (ex new highway)(ex new highway)

7. Circumstance7. Circumstance

A situation where a certain A situation where a certain product suddenly becomes high product suddenly becomes high in demand.in demand.Gives a company the opportunity Gives a company the opportunity to expand or move.to expand or move.