Location Factors for Manufacturing

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Location Factors for Manufacturing
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1. Availability of Raw Materials

• Manufacturers need a reliable source of raw
  materials
• For some companies it is extremely important to
  locate near the raw materials.
• (Ex fruits/veggies, bulky raw materials)

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Availability of Raw Materials
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2. Location of Markets

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

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Location of Markets
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3. Labour Supply

• A company must consider the availability/cost of
  labour
• It is difficult for CAN to compete with countries
  that employ low cost labour
• Therefore, manufacturers in CAN are more likely
  to employ skilled workers

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Labour Supply
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4. Availability of Freshwater/Power

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

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Availability of Freshwater/Power
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5. Transportation

• Depending upon the type of product being
  manufactured, different companies rely on
  different sources of transportation
• Ex, Steel- ships or trains
• Electronics- Planes or trucks

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Transportation
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6. Political Factors

• Govts can make decisions that will help to
  attract new business to a city/province/country
• Direct
• Have a direct effect on the company (ex reduced
  taxes)
• Indirect
• Have a indirect effect on the company (ex new
  highway)

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7. Circumstance

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