Conclusions

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3.2 Factors Influencing the Location of an Industry

Many factors are considered before an industry is located in area. These factors include:

1. Proximity of source of raw materials

i. Cement producing industries should be located close to sources of raw materials to reduce cost of transportation.

ii. Perishable goods like fruits, palm oil industries etc. should be located near their raw materials.

2. Nearness to Market

i. There should be ready market for the products of any industry to be sited in a place.

ii. Fragile products like glass, bulky goods like cement and other perishable goods should be located near the market iii. Nearness to market reduces the cost of transportation and

meets high demand by consumer.

iv. Such industries located or directed towards the market are called market-oriented industries.

3. Availability of Capital

i. There should be enough capital to purchase industrial input before and after setting up industries.

ii. Entrepreneurs should have access to loans.

iii. Fixed capital should also be easily acquired.

iv. Industries which use heavy machines or which require large capital for their operations are called capital-intensive industries.

4. Nearness to source of power

i. There should be ready and dependable source of power.

ii. Source of power could be electricity, coal, thermal, petroleum products etc.

5. Availability of Labour

i. There should be high quality skilled labour ii. There should also e enough unskilled labour.

iii. Industry which requires large labour force for their operations are called labour intensive industries.

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6. Adequate transport system

i. Transport is required essentially to move raw materials to industrial sites.

ii. Transport is also required to convey finished goods to the market or areas of consumption and use.

iii. Transport could be by road (cars, lorries, buses, trucks etc) by sea (boats, ships) or by air (aeroplane).

7. Political Stability

i. A stable government encourages industrial growth.

ii. Political stability also attracts foreign investors.

iii. Communal wars and conflicts do not favour industrial growth.

8. Favourable Growth

i. There should be favourable climatic conditions for industries to grow.

ii. A favourable climate is also required for some agricultural firms to thrive.

9. External economics or the location of other firms

i. Firms are often set up near others in order to take advantage of external economies.

10. Government Policies

Government can encourage the location of industries through certain policies like:

(a) Direct participation in setting up industries.

(b) Creation of industrial zones in the country.

(c) Provision of infrastructures like electricity, pipe borne water, roads, telecommunications etc.

(d) Granting credit facilities to industrialists.

(e) Granting of tax incentives or holidays to potential industrialists or industrial set ups.

11. Site and Services

Existence of public utility services, cheapness of the value of the site, amenities attached to a particular site like level of ground, the nature of vegetation and location of allied activities influence the location of an

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industry to a certain extent. The government has classified some areas as backward areas where the entrepreneurs would be granted various incentives like subsidies, or provision of finance at concessional rate, or supply of power a cheaper rates and provision of education and training facilities. Some entrepreneurs induced by such incentives may come forward to locate their units in such areas.

12. Natural and Climatic Considerations

Natural and climatic considerations include the level of ground, topography of a region, water facilities, drainage facilities, disposal of waste products, etc. These factors sometimes influence the location of industries. For instance, in the case of cotton textile industry, humid climate provides an added advantage since the frequency of yarn

breakage is low. The humid climate

of Bombay in India and Manchester in Britain offered great scope for the development of cotton textile industry in those centres.

13. Personal Factors

In deciding location of industrial units, sometimes an entrepreneur may have personal preferences and prejudices against certain localities. For instance, Mr. Ford started to manufacture motor cars in Detroit simply because it was his home-town. In such cases, personal factor dominates other considerations. However, this kind of domination is rare.

14. Strategic Considerations

In modern times, strategic considerations are playing a vital role in determining industrial location. During war-time a safe location is assuming special significance. This is because in times of war the main targets of air attacks would be armament and ammunition factories and industries supplying other commodities which are required for war. The Russian experience during the Second World War provides and interesting example.

15. External Economies

External economies also exert considerable influence on the location of industries. External economies arise due to the growth of specialised subsidiary activities when a particular industry is mainly localised at a particular centre with port and shipping facilities. External economies could also be enjoyed when a large number of industrial units in the same industry were located in close proximity to one another.

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16. Miscellaneous Factors

Historical incidents also play a dominating role in determining the location of industries in certain cases. The development of cotton-textile industry in Lancashire provides an interesting example for this. Further, the size of and industrial unit would also have much influence in choosing location. This is because the size of industrial units depends upon the radius of the circle within which they can profitably distribute their goods and upon the density of population living within the circle.

3.3 Reasons for Government Participation in the Location of Industries in Nigeria

1. To raise the standard of living: This is one of the reasons government participates in the location of industries. When such industries are located, goods are made available and the people get employment and earn income hence their standard of living will be raised or improved.

2. Provision of standard goods: Industries so located are capable of producing standard goods thereby preventing the proliferation of low quality goods.

3. Equitable spread of development: Government tries to locate industries in different parts of the country to ensure even development.

4. Provision of employment opportunities: Government also participates in the location of industries in order to generate employment opportunities for the people where such industries are located.

5. Political consideration: Government can also influence the location of certain industries for political reasons, especially for the purpose of winning the election.

6. To check rural-urban migration: Industries are located in rural areas by the government in order to check the movement of people from rural to urban centres.

7. For economic development: Industries which are equitably distributed round the country do ensure rapid economic development.

8. For strategic reasons: Government can also influence the location of certain industries for strategic reasons, e.g industries that manufacture arms and ammunition must be protected from competition.

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SELF-ASSESSMENT EXERCISE

i. Define location of industry

ii. List factors influencing the location of an industry

iii. State reasons government participation in the location of industries in Nigeria.

4.0 CONCLUSION

Many factors influence the location of industry. Nowadays, the change from heavy industry to light industry has meant that industries can locate anywhere and so other factors, such as communications links and government policy, become far more important.

5.0 SUMMARY

In this unit, you have learnt:

1. Definition of location of industry

2. Factors influencing the location of an industry

3. Reasons for government participation in the location of industries in Nigeria.

6.0 TUTOR-MARKED ASSIGNMENT

Discuss socio-economic factors which influence location of industry.

7.0 REFERENCES/FURTHER READING

Ande, C.E. (2012). ―Essential Economics for Senior Secondary School‖.

http://teacherweb.ftl.pinecrest.edu/snyderd/APHG/Unit%207/Location%

20Factors.htm.

http://geographyfieldwork.com/IndustryLocationFactors.htm.

Teriba, O. (1978). ―Certificate Economics for West Africa‖.

http://www.s-ool.co.uk/gcse/geography/industry/revise-it/the-location-of-industry.

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