Factors Influencing the Development of an Industry or Activity

Industries or economic activities develop based on a combination of physical, human, economic, and political factors. Here are the key factors:

infoNote

Raw Materials:
Proximity to raw materials is critical for industries that depend on bulky or perishable resources (e.g., steel industry near coal and iron ore reserves).
Climate:
Suitable climate can encourage certain industries (e.g., agriculture, vineyards in sunny regions).
Land:
Availability of flat and large land areas for factories and warehouses.
Energy Sources:
Accessibility to power (e.g., industries near hydroelectric power plants or natural gas reserves).

infoNote

Labour Supply:
Availability of skilled and unskilled labour.
Costs of labour (e.g., industries in developing countries to reduce production costs).
Transport and Infrastructure:
Efficient transport networks for raw materials and finished goods (roads, rail, ports).
Reliable communication infrastructure.
Market Proximity:
Industries often locate near large markets to reduce transport costs and ensure fast delivery.

infoNote

Capital:
Industries need significant investment to set up and operate.
Areas with banks, investors, and incentives attract industries.
Economies of Scale:
Industries may locate in clusters to benefit from shared services, labour pools, and suppliers (e.g., Silicon Valley for tech).

infoNote

Example:

Physical Factors: Proximity to coal and iron ore reserves (e.g., Ruhr Valley, Germany).
Human Factors: Skilled workforce and excellent transport infrastructure.
Economic Factors: High demand for steel in construction and manufacturing.
Political Factors: Government policies encouraging industrialisation.