Industry Location

Capital

Heavy industries and high-tech industries need the most capital.

It is more likely to influence the choice of country/region as opposed to the area within it.

Raw materials

It is ideal for industries to locate close to raw materials as they are often cheap to buy and expensive to transport.

Site needs

Heavy industries need lots of land which is flat and cheap.

Light industries will need less land and may be more concerned about how the factory looks to impress clients.

Energy

Heavy industries need lots of energy.

Labour

Hi-tech light-industries may need to locate close to universities/colleges as they often require skilled workers.

Heavy industries may choose to locate in areas of high unemployment as it is easier to employ people.

Government

The higher the capital investment, the more attractive a government loan becomes.

Government incentives are often reserved for areas of high unemployment.

Market

If the products that a factory produces are large and heavy, it is easier to locate close to markets where the goods are likely to be sold.

Transport

Transport costs are important for all industries as it can become very expensive to transport certain goods.

Other communications

The use of the internet and email has meant that more people can work from home and there is a greater freedom for a location worldwide.