industrial location

industrial location

the geographical site or sites selected by a firm to perform its economic functions. The choice of an appropriate location is influenced by a range of considerations but two are particularly important:
  1. the nature and characteristics of the industrial activity that the firm performs (for example raw material extraction or crop cultivation, the manufacture of intermediate or final products, the provision of a service) and
  2. the relative costs of production at different locations balanced against the cost of physical distribution to target markets, and the importance of closeness to customers as a basis for establishing COMPETITIVE ADVANTAGES over rival suppliers.

Some activities are highly location-specific. For example, the extraction of iron ore can only occur where there are deposits of the metal. Likewise many service activities, for example retailing, have to be located in and around customer catchment areas, while some suppliers of components may find it advantageous to operate alongside their key customers in order to synchronize better the latter's input-production requirements. The manufacture of final products tends to be more ‘footloose’. Certain locations may be preferred for their production advantages, because of, for example, lower labour costs, or the availability of investment subsidies (see REGIONAL POLICY) or the supply of skilled workers and access to related facilities. On the other hand, high distribution costs, especially in the case of bulky, low value added products, or, in the international context, the imposition of tariffs and quotas on imports, tend to favour a market-orientated location. See GREENFIELD LOCATION, BROWNFIELD LOCATION, INDUSTRIAL ESTATE, MULTINATIONAL ENTERPRISE.

industrial location

the geographical site or sites selected by a firm to perform its economic function. The choice of an appropriate location is influenced by a range of considerations but two are particularly important:
  1. the nature and characteristics of the industrial activity that the firm performs (raw material extraction or crop cultivation, the manufacture of intermediate or final products, the provision of a service), and
  2. the relative costs of production at different locations ‘balanced’ against the cost of physical distribution to target markets and the importance of ‘closeness’ to customers as a basis for establishing COMPETITIVE ADVANTAGES over rival suppliers.

Some activities are highly location-specific. For example, the extraction of iron ore can occur only where there are deposits of the metal. Likewise, many service activities, for example retailing, have to be located in and around customer catchment areas, while some suppliers of components may find it advantageous to operate alongside their key customers in order better to synchronize the latter's input-production requirements. The manufacture of final products tends to be more ‘footloose’. Certain locations may be preferred because of their production advantages, either because, for example, of lower labour costs or the availability of investment subsidies (see REGIONAL POLICY) or because of the availability of skilled workers and access to related facilities. On the other hand, high distribution costs, especially in the case of bulky, low value-added products, or in the international context, the imposition of tariffs and quotas on imports, tend to favour a market-oriented location. See GREENFIELD INVESTMENT, INDUSTRIAL ESTATE, MULTINATIONAL COMPANY, LOCATION OF INDUSTRY.

References in periodicals archive ?
Victor Ktori, head of office at Savills Nottingham, comments: 28 Beecroft Park provides a rare opportunity to purchase a fully serviced development site that has undergone significant infrastructure works and is free from builder or developer ties in a prime industrial location.
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ABSTRACT: The paper focuses on the contemporary industrial location theories and examines their applicability in the Province of Punjab, Pakistan.
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The speculative Crowland Street Commerce Park development is being built within the established Blowick business and industrial location of the town.
Entrepreneurship, industrial location and economic growth.
JUST one unit remains available to let at a major new distribution and industrial location in Coventry.
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A 20-acre industrial location in North Little Rock rang up a $550,000 deal ($27,500 per acre).
They're either hard to reach or in a demanding industrial location where wiring won't survive.
Situated in the prime industrial location of Thrapston, the property benefits from being adjacent to the A14 and A45 providing access to the M1 and A1.

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