3. INDUSTRY AND GEOGRAPHIC AREAS FACTORS OF INDUSTRIAL LOCATION - They are the conditions which must have places where industrial companies set up their businesses in order to reduce productions costs. - Main factors: 1. Availability of workers and business owners - The number of workers depends on the type of industrial activity: - Advanced technology industries: have fewer. More skilled workers. - Traditional industries: more workers who are less skilled. 2. Good transport links - Industry requires accesible locations for worker and suppliers of raw materials, parts (componentes o piezas), tecchnology and services. - Industry need good transport infraestructure (roads, airports, ports and train stations) to make it easy to send products to their customers. - Many are located near main cities.
3. INDUSTRY AND GEOGRAPHIC AREAS 3. Cheap, reliable energy - Industries require a reaonably priced electricity supply without power cuts. 4. Government support - Entrepreneurs look for: - locations with policies that support access to credit. - legal certainty - Less bureaucracy.
5. Access to capital - The majority of the money reqired to set up an industrial activity comes from financial institutions or investment funds. - Investors stopped the project if a location do not have the conditions to make the activity profitable.
3. INDUSTRY AND GEOGRAPHIC AREAS 6. Technology - New industries emerge in ore developed countries with highly skilled personnel, research ceantres and capital to invest. - When technology is better known, industries move to other countries with cheaper labour. 7. Available land and insdustrial buildings. - It is essential to have access to land and buildings suitable for production activities.
3. INDUSTRY AND GEOGRAPHIC AREAS TYPES OF INDUSTRIAL AREAS 1. Technology parks or science parks - Areas that are occupied by companies that manufacture high-tech products. -Located near research centres nd universities because knowledge is essenial for them. 2. Industrial states or industrial parks - These are made up of a group of industrial buildings used to produce products for sale from manufactured materials or parts. - They are located on the outskirts of cities or in places wih very good transport links. - They need their products to reach the largest number of customers and the lowest transport costs possible. 3. Large factories - They use large amounts of raw materials and energy. - They need to be located close to high-capacity transport infrastructure - They inclue processing iron and other minerals: iron and steel industry, heavy metal industry, oil proccesingand shipyards.