factors affect location decision of manufacturing business

• Factors that affect location decisions: land size, land availibility, scale of production, raw materials, labour, government influence, cost of site
• Scale of production (location decisions) - a business that uses flow production may need a bigger location to store machinery, on the other hand, job production would require a smaller location
• raw materials: proximity to raw materials will enable a business to lower transport costs + increase speed of delivery (helpful for JIT)
• cost of site: business have to choose a location that is affordable and within budget
• government influence: a government can influence a business's choice to choose a location over another by offering them grants to encourage business in one area (high unemployment rates)
• availibility of labour: althoguh some businesses require less labour, they still need a location that can supply them with labour (cheapest)
• infrastructure: transport links are important as business will ease access for their suppliers; good transport links ensure easy delivery of goods