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Unlock This CourseThe secondary sector involves manufacturing and processing raw materials into finished goods. Where these industries locate is crucial for their success. Companies must carefully consider many factors when choosing where to build factories, from access to raw materials to transport links and labour costs.
Key Definitions:
Choosing the right location can make or break a business. A good location reduces costs, improves efficiency and increases profits. A poor location can lead to high transport costs, difficulty finding workers and ultimately business failure.
Physical geography plays a huge role in determining where secondary industries can successfully operate. These natural factors often cannot be changed, so businesses must adapt to them.
Many industries need to be close to their raw materials, especially if these materials are heavy, bulky, or perishable. This reduces transport costs and ensures steady supply.
Steel works locate near iron ore and coal deposits. Cement factories are built near limestone quarries. These materials lose weight during processing.
Fruit canning factories locate in agricultural areas. Sugar refineries are built near sugar beet farms. Fresh produce needs quick processing.
Sawmills and paper mills locate in forested areas. This reduces the cost of transporting heavy logs over long distances.
Port Talbot steelworks was built on the Welsh coast to take advantage of imported iron ore arriving by ship and local coal deposits. The coastal location allows large ships to deliver raw materials directly to the plant, whilst the flat land provides space for the massive steel-making facilities.
Weather and environmental conditions can significantly impact industrial operations and costs.
Human factors often outweigh physical factors in modern industrial location decisions. These factors relate to people, infrastructure and economic conditions.
Having access to the right workers is essential for any industry. Different industries need different types of workers.
High-tech industries like aerospace and pharmaceuticals need highly educated workers. These industries often locate near universities or in areas with good schools and training facilities.
Some industries relocate to areas where wages are lower. This is why many clothing manufacturers have moved production to developing countries where labour costs are much cheaper.
Good transport links are vital for moving raw materials in and finished products out. Modern industries need multiple transport options.
Nissan chose Sunderland for its car manufacturing plant because of excellent transport links (A1 motorway, nearby ports), available skilled workforce from declining shipbuilding industry, government incentives and access to the European market. The plant now produces over 400,000 cars annually.
Government policies and economic conditions heavily influence where industries choose to locate. These factors can change quickly and dramatically affect business decisions.
Governments often try to attract industries to specific areas through various incentives and policies.
Tax breaks, grants and subsidies can make certain locations more attractive. Enterprise zones offer reduced business rates and simplified planning.
Governments can designate industrial parks and streamline planning permission. They can also restrict certain industries from environmentally sensitive areas.
Government investment in education and training creates skilled workforces that attract high-tech industries to specific regions.
Being close to customers reduces transport costs and delivery times, which is increasingly important in today's competitive markets.
Industrial location factors have changed dramatically over time due to technological advances, globalisation and changing economic conditions.
In the past, industries were tied to specific locations by physical factors. Today, many industries have much more choice about where to locate.
Coal, iron and water power determined locations. Heavy industries clustered around coalfields and iron ore deposits. Transport was expensive and slow.
Footloose industries can locate almost anywhere. Technology, skilled labour and quality of life are now more important than raw materials for many industries.
Silicon Valley became the world's leading technology hub not because of raw materials, but due to the presence of Stanford University, venture capital, entrepreneurial culture and clustering effects. Companies locate there to access talent, ideas and networks rather than physical resources.
Globalisation has fundamentally changed how companies think about location. Businesses can now split their operations across multiple countries to take advantage of different location factors.
Modern businesses increasingly consider environmental impact and sustainability when choosing locations. This reflects growing environmental awareness and stricter regulations.
Environmental considerations are becoming more important in location decisions as companies face pressure to reduce their carbon footprint.