Location Factors

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					Primary Industry
   Located where the resource is :
    › Forestry is in the forests
    › Mining is where the minerals deposits are
    › Agriculture where the good land is
    › Oil and Gas production where the deposits are
7 factors to consider in Determining location

   1. Labour Supply: Is there enough qualified workers
   2. Transportation: rail, road, air travel, Pipelines ect….
   3. Markets: locate near your customers to minimize
      transport cost
   4. Power Supply and Water: manufacturers require large
      amounts of power and water
   5. Raw Materials: In order to reduce transport costs,
      factories located close to the stuff they make there
      products with
   6. Site: Must be large amounts of land
   7. Government: government incentives , taxes, and grants
      available
Where would the following locate in Canada?
1. Large Agricultural chemical Plant
2. Meat packing plant
3. Computer manufacturer
4. Automobile manufacturer
5. Athletic Shoe Factory
6. Boat manufacturer
7. TV Factory
 Located in urban / Populated regions
 Location factors is focused on Market
  and Labour force, reinforce the Urban
  Centre.
         Location Factors Quaternary
•Deal with information so do not require a specific
location
•Labour is a consideration so proximity to urban
centres are a consideration
 The location of an industry is based on a
  unique set of circumstances – these
  factors will enable to business to operate
  at a lower cost giving them an
  advantage over competitors.
 The factor that offers the most significant
  cost saving will be the most important
  one to determine final location
 For some companies – it is extremely
  important to locate near the raw
  material they will deal with.
 This can be because the material is
  value/time sensitive and will degrade
  quickly or because the raw material is
  difficult or expensive to ship.
 Example – McCain’s Foods
 A company may choose to locate close
  to the majority or its customers. Delivery
  costs per unit are lower, time for delivery
  is lower.
 Example – Cardium Tool Services
 Many primary manufacturers require
  larger amounts of power and water to
  operate. These include smelters, steel
  makers, and oil refineries. One of the
  most significant power source for
  determining location is hydro-electricity.
 Example – Alcan Aluminum
   Many companies have significant human inputs in
    their processes. These require the factory to be
    located near large – low cost labour pools. This is
    very common in clothing manufacture. Since
    NAFTA, Canada has had difficulty in competing
    with Mexico because the workers are paid very
    little – maquiladoras – large clothing and textile
    factories along the Mexico – US border. Sometimes
    this labour force must be highly educated or skilled,
    requiring companies to move next to the
    educational institutions that produce them.
   Example – Nortel Networks
 All companies require transportation to
  some extent for their raw inputs, final
  products, or workforce. This is the one
  factor that has been most influenced by
  technology – allowing goods to travel
  farther, faster, cheaper, and in higher
  quantities.
 Example – Dow Chemicals
 Businesses rely on governments to
  provide profitable climates. The most
  important factor here is taxation levels.
  Also included in these are regulations
  and controls on things like environmental
  impacts, workforce costs, and
  transportation links. All these climates are
  set by elected officials and can be
  changed relatively quickly.
 Example – Toyota Manufacturing
 Some factors are general and difficult to
  measure. Entrepreneurial drive, political
  forces, social forces, and others can
  influence the long term costs of
  operation for companies – particularly
  large ones. These are unique to every
  situation and can change rapidly.
 Example – GM or Canada
Where would the following locate in Canada?
1. Large Agricultural chemical Plant
2. Meat packing plant
3. Computer manufacturer
4. Automobile manufacturer
5. Athletic Shoe Factory
6. Boat manufacturer
7. TV Factory
 Using page 29 of the new atlas and 26 of
  the old to map the location of
  Manufacturing in Canada today.
 Be prepared to explain the reasons for
  industrial location in Canada.

				
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posted:9/6/2011
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