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(a) Raw materials.
The availability and constant supply of raw materials is essential in the establishment of an industry. Before an industry is set up, a survey is done to establish that there will be a steady supply of raw materials.
Industries which use heavy and bulky raw materials are usually located at or near the source of raw materials to reduce transportation costs such as a sugar cane milling factory.
(b) Power
For an industry to operate, power is essential. There is no industry that can operate and develop without power. Industries can be located far away from the source of power since power can be transmitted or transported to industrial regions. There is however a distance limit within which power can be transported cheaply. Beyond this limit it becomes uneconomical.
(c) Market
Large urban centres provide a large market for finished products since the people's purchasing power is high. Large industrial areas are located near urban centres. A large population however does not automatically guarantee a large market as the people's purchasing power may be low. This is the case in most African countries.
Industries that manufacture perishable and fragile products are generally located near their markets. An example is a glass manufacturing industry which has to be located near their market to reduce the risk of transporting the finished products.
Faimus answered the question on April 26, 2018 at 09:53
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