Location Factors for Manufacturing

What are the 7 factors

Location of customers

Location of raw minerals

Availability of water and power

Labour supply

Transportation

Politics

Circumstance

Location of customers

Depends on the location of customers.

Ex. Bakery cause the bread goes bad fast so it needs to be closer to customers

Location of raw materials

Helps to make giant amounts of fresh something. Easier.

Ex. Having a potato company close to potato farms.

Availability of fresh water and or power

When you need a lot of power to create something or using water for the factory.

Ex. Aluminum needs a lot of power to be processed.

Labour Supply

Having enough workers that are knowledgeable.

Ex. Cutting diamonds they need to have knowledge about it.

Transportation

Easy to move things to other places and shipping.

Political Factors

Circumstance

By coincidence it just starts there. If i start a hat company in Canada then it turns big and global that’s circumstance.

Reasons for lost manufacturing

Competition

Outdated tech

Low pay

Low demand