Survival of a company can depend on choosing just the right location for the factory

7 important location factors can affect why manufacturers locate where they do.

RAW MATERIALS: SOMETHING TO PROCESS

Manufacturing industries want to locate near the natural resources they will use

The Canadian Shield has minerals and timber, this is very useful for manufacturing industries in S. Ontario and S. Quebec

e.g. Pulp and paper mills- located in forest regions

e.g. Food- processed at canneries, and/or close to the source

e.g. Fish and seafood- processing plants along the coast

Therefore, this keeps the cost down, makes more economic sense, and helps preserve the food

ENERGY- POWER TO MAKE THINGS HAPPEN

Many manufacturing industries need lots of cheap power

Many rivers from the Canadian Shield provide Hydro-electric energy (CHEAPLY!)

Energy timeline: animal power, slaves, winds, waterfalls, steam engine, electric power

TRANSPORTATION- MOVING THE GOODS

Essential throughout the whole process

Manufacturing industries will need fast, reliable and inexpensive transportation

Water, rail, road are used for bulky raw materials and finished products

Air for fast transportation of light or perishable products

Busiest transportation route in Canada is from Quebec City to Windsor (Windsor to Quebec Corridor)

LABOUR- PEOPLE POWER FOR THE PROCESS

Manufacturing industries need both skill and unskilled labour

Canada’s largest labour force is found in S. Ontario and S. Quebec

Unemployment is a serious problem for labour force because of foreign competition and automation

MARKETS- INDUSTRIES NEED CUSTOMERS

“market” refers to people who are available to buy the goods or service of a company

Could also be considered the first locative factor (locate where there is demand)

The larger the population, the great their purchasing power

Many Industries locate in S.Ontario and S. Quebec simple because these regions hold approx. 50% of Canada’s population

Governments: often do everything they can to attract businesses

Political

Local governments will often provide interest-free loans to start a business in their city

They will often give reduced land taxes for several years

Cities like to have a variety of basic industries in order to ensure greater economic stability

Circumstance- History or By Chance development

Circumstance

Areas that have been settled in for a long time tend to draw new industries to their community (stability)

In early years, the N.E USA was developed as an industrial base, it was cheaper to send finished products west rather that to develop a factory in the west

Because there was a strong industrial base in the N.E. USA, it attracted similar development in S. Ontario and S. Quebec