A large scale concern can afford to install its own repair workshops, whereas small concerns may rely on various repair shops working near the factory. Climate also affects the efficiency of labour. The number of buyers does not shift the supply curve. Besides transportation, communication services are also used to be of immense importance in deciding the location of an industrial unit. Banks, stock exchanges and other similar institutions help in capital formation and expansion of industry by providing financial help to it from time to time. Manufacturing a thing successfully is not sufficient. It influences the total cost of production. This also affects the establishment of an industrial unit. This is another important factor affecting industrial location. If however, the entrepreneur acts rationally and his necessary knowledge he will choose the location which offers the lowest cost per unit of output. Alford Weber has given another type of raw materials called ubiquitous like clay sand and water which are found everywhere and as such do not affect the location of an industry. Internal arrangements pertaining to fire extinguishers, sand buckets and other firefighting equipment must be arranged. In addition to the factors discussed above cost of land and building for setting up the factory topography of the area; the possibilities of future expansion etc., are some other factors which influence the decision-making regarding location of industry. There should be an easy approach to the place of raw-materials. No productive activity is possible without the availability of adequate capital. It reduces the cost of transportation. On account of Naxalites movement in West Bengal, Industries started moving out of West Bengal. Nearness of the market ensures transportation costless and minimum wastage. The behaviour of the existing buildings or structures neighbourhood may guide in deciding the type and the depth of … Soil and climatic conditions are very important for the establishment of various type of industries like tea, coffee, rubber and tobacco. Following factors can be explained under this category: For the efficient and smooth running of the business and for meeting working capital requirements, banking facilities play an important role. For example—The development of the dying and printing industry in Farukhabad and the glass industry in Ferozabad d have been mainly located there due to the availability of skilled labour in these towns. The views to the site as well as the views from the site are to be carefully considered while designing. In certain type of industries transportation is the sole factor which is taken into consideration in deciding location of an industrial unit. Industry using third type of raw material can be located anywhere. Kimball and Kimball have rightly pointed out that “The ideal plant is one centrally located and directly served by water, rail, trucking and air facilities”. PLAY. Constant research and experimentation is undertaken to develop products and improved methods of production. Chapter 10 A&B Learn with flashcards, games, and more — for free. Report a Violation, Factors Affecting the Location of an Industrial Unit: (i) Primary and (ii) Secondary, Plant Location: 11 Factors that Influence the Selection of Plant Location, Production Planning: it’s Meaning and Objectives. Search. Copyright 10. Transportation is the life line of modern industry. This is because banking has become indispensable part of modern business. Such measures are undertaken by the Govt, in order to ensure balanced and regional growth of industries in India. Site. Certain cash incentives and concessions are also given by Govt, in order to promote a particular industry in a particular region. In actual practice, if required skilled labour is not available in a particular region, the available labour can be trained in the required skill or alternatively skilled and trained labour can be migrated from other regions to the plant. Existence of such specialised institutions must be kept in mind before starting an industrial unit. Similarly sugar factories are located very near the sources of raw materials. Political harmony and peace in a particular region encourage the establishment of industrial units. electricity, gas, oil and water power etc. (iii) Jute works in Bengal owe their success on account of easy availability of raw-materials. Start learning today with flashcards, games and learning tools — all for free. Prohibited Content 3. Some of the factors are: 1. STUDY. On the other hand, market as a factor of location will not affect much the location of industries using heavy and weight losing raw material. Industries using pure raw material (which do not lose their weight when turned into finished products) may be situated away from the source of such raw materials. Sometimes personal likes had dislikes also influence location of a particular industrial unit. Availability of Raw-materials 2. Adequate transportation facilities should be available for carrying the material from the source of supply. They involve themselves completely in the intricacies and various operations of the machines and implements being used in the industry. But such personal likes and dislikes cannot influence location of an industrial unit in the long run. Prior permission and licence is necessary under the Act before the setting up of a new industrial unit. Every industry requires fuel for working the machinery and unless the region has rich fuel resources of power now available are coal, hydro-electricity and oil etc. Plagiarism Prevention 4. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. An industry should be located in the areas where there are already developed means of transportation. Image Guidelines 5. Locally available resources - One also needs to find out what the locally available resources are. There are some industries in which the inherited skill of the workers in an important factor in the process of manufacturing. (ii) Textile factories in Gujarat and Maharashtra. Unrestricted and regular supply of raw material is very necessary for carrying out unrestricted production. Industrial Development and Regulation Act of 1951 laid down clearly certain rules, regulations and formalities to be complied before setting up an industrial unit. (a) raw materials which are weight losing and cannot be preserved for a long time e.g., fruits for juice making (b) raw materials which are bulky, heavy and weight losing in nature, like iron ore etc. For example, a publishing house publishing Punjabi books cannot be located in Calcutta or Bombay. egear7. There is a tendency for an established industry to remain localised in a particular areas in which it arose even after some of the original advantages possessed by that area for such work have lost their previous importance. On account of development of internet, mobile phones etc., this factor does not affect the location of plant now a days. Criteria and factors affect site selection for industrial building Environmental consideration is playing the significant role in industrial building construction. The labour can be attracted by providing various facilities and incentives like housing, canteen, rest rooms, incentive wage plans etc. ADVERTISEMENTS: Factors affecting location of an industrial unit are: (I) Primary factors and (ii) Secondary factors: Decision with regard to location of an industrial unit involves a careful study of many factors. The various factors are divided into two categories viz., […] On the other hand, unhealthy competition retards the industrial growth in a region. Proper and right choice of location is instrumental in future success of the business. In modern times different modes of transportation and their increased efficiency and flexibility have provided ample choice to the industrialists in the matter of location. The correct answer is d) The number of buyers.. In case of rural and small scale industries, banks and financial institutions play an important role and provide invaluable service in order to cater their financial needs. Quizlet makes simple learning tools that let you study anything. Availability of skilled and efficient labour is mainly responsible for the development of various industries in a particular region e.g., cotton textile industry of Great Britain developed at Lancashire mainly on account of availability efficient labour. The location of the plant, should therefore be at a place where adequate transport facilities are available at cheaper rate.