Nature of activity

• Retail companies generally want to be located close to customers
• Retailers sell products directly to customers and are often found in busy areas and around other retail outlets
• Retail businesses that only sell products through the internet are an exception
• Service companies may need to be located near customers or can be located anywhere
• Examples of service companies that can be located anywhere: contact centres and web designers
• Manufacturing companies prefer locations with cheaper rent over being close to customers
• Many manufacturing companies transport products around the country or further
• Business location for manufacturing companies is generally decided by costs, especially for small businesses
• If a product is bulk gaining, the manufacturer may consider being located close to its market, depending on cost
• If a product is bulk reducing, it usually makes sense for the manufacturer to be located closer to its raw materials
• Infrastructure refers to facilities that support everyday economic activities like roads, phone lines, and gas pipes
• Efficient transport network enables staff to get to work easily and allows supplies to be brought in from far afield
• Infrastructure permits finished products to be moved to market cheaply and quickly
• Impact of location depends on the type of business
• Shops and restaurants need to be conveniently located for customers
• Delivery-only takeaways may prefer to be located in cheap premises on the edge of town, close to good transport links