Location of a Manufacturing Industry

Terms Used in Describing the Location of Industries

Weight Gain Industry:
An industry that makes products which get heavier in the manufacturing process. A good example
are cars. All the individual parts that go to make a car (tyres, windscreens, mirrors, etc.) don't weigh
very much, but the finished product does weigh a lot. Because of this, weight gain industries tend
to locate near the market place (their customers).

Weight Loss Industry:

An industry that loses weight in the manufacturing process. A good example is steel which uses
huge amounts of iron ore and coke to make it. In the process of making the steel there is a lot of
waste products making the finished product lighte. Because of this, weight loss industries tend to
locate near to the raw material they need because transporting the finished product is cheaper.

Just-in-time Manufacturing (JIT):

Industries that order the supply of parts (components) as and when they need them. By doing this
you can save on storage costs, but it does mean that you have to have excellent communication and
relations with your suppliers.

Just-in-case Manufacturing (JIC):

Industries that stockpile a supply of parts (components) just in case they are needed in the
production process. This increases storage costs, but ensures that they never run out of parts to
manufacture.

Footloose Industries:
Normally tertiary or quaternary industries that are not tied to raw materials and therefore don't have
such strict location requirements. Because of this they might look for more human factors like
skilled labour, good housing and recreational facilities or access to capital.

Perishable Goods:
Products that go rotten very quickly e.g. bread, milk, cakes, fruit and vegetables. Although quicker
transportation and improved refrigeration allow perishable products to be transported all over the
world for customers to receive truly fresh products, these industries have to locate near their market
(customers).
Summary of factors influencing the location of a manufacturing industries

Industrial location factors

Different industries require different inputs. Industries are more likely to locate where these inputs
are readily and cheaply available. Factors that influence where an industry locates include:

Human Factors
Skilled Labour: In some industries especially quaternary it is important that there is an availability
of skilled labour.
Cheap Labour: In other industries like clothes production an availability of cheap labour is very
important. This why many clothes factories locate in LEDCs.
Available Capital: For industries to build factories or offices, research and develop new products
or enter new markets, they need access to money.
Market: For any industry to survive, they need customers. Therefore it is very important to locate
near their potential market.
Supply Network: Most industries have a large supply network. To ensure the smooth production
of products it helps being close to suppliers.
Good Housing: To attract any workers it is important to have suitable housing nearby. For
quaternary industries this might be good quality housing for secondary industries this might be high
density cheaper housing.
Good Schools and Hospitals: Again to attract workers and especially their families, it is important
to have good nearby schools and hospitals.
Nearby Universities: For quaternary industries that carry out a lot research and development they
need to be located near universities that have skilled workers and available laboratories.
Transport Links: It is important to be close to good roads and rail links so that industries can
receive supplies and distribute products.
Good Communications: It is now very important for industries to have good communications so
that they can contact suppliers and customers.
Reliable Electricity and Water Supply: For all industries a constant electricity supply is essential
because industries can't afford breaks in production.

Physical Factors
Flat Land: It is a lot easier to build on flat land than hilly land so most industries look for flat sites.
Available Land: If industries are successful they will want to expand, so most industries will look
for sites that have the potential to expand factories/offices.
Unpolluted Land (Greenfield Site): Most industries would prefer to build on greenfield sites. This
is because there are no clean-up costs before building.
Natural Transport Links: In an increasingly globalised world, products are now sold worldwide.
Therefore it is important to be close to natural transport routes e.g. rivers and the coast.
Available Raw Materials: For any industries that use raw materials (especially weight loss
industries), it is very important to be close to them.
Renewable Energy Sources: It is becoming increasingly important for companies to demonstrate
their sustainability. Therefore it will become increasingly important to have access to renewable
energy sources (wind and sun).
Nice Environment: For tertiary and quaternary industries who are trying to attract skilled workers
it is useful to be near a nice environment to make working their more attractive.
Water Supply: For many industries, especially manufacturing, it is very important to be near a
reliable water supply (river or reservoir).
Climate: For some industries a good climate can be very important. For example you would not
locate a solar panel research and development company in a place where the sun never shines.
Summary for your personal notes:
An example illustrating the role of location factors:

Toyota - Burnaston Manufacturing Plant (Near Derby, UK)

The Toyota factory is located in Burnaston, near Derby (Central England).

Toyota is the world's largest producer of cars and opened the Burnaston factory in 1992. It employs
over 2,500 people and has over 200 suppliers, the majority of which are from the UK. There are a
number of human and physical factors why Toyota chose Derby. The reasons included:

Human Factors
Transport: It is located on the junction of the A50 and A38 roads. Both these main roads have
connections with rest of the country (M1, M6, M42). The plant is also near to East Midlands
International Airport and has rail links to all parts of the UK. Transport links are important to receive
supplies and transport finished products (cars).

Labour: Derby is a traditional manufacturing location (it already has Rolls Royce and Bombardier
factories) so has a large supply of skilled workers.

Universities: Burnaston is near Derby, Leicester and Nottingham universities all of whom can
provide skilled graduates and research facilities.

Market: The UK has a population of 65 million and the EU has a population of over 500 million
which is a huge potential market for Toyota to sell cars to. European Union: The UK is in the EU.
By Toyota being located in the UK it can more easily export cars to the rest of the EU.
Reliable Electricity: The UK has a national electricity grid which means everywhere in the country
is connected to electricity. Therefore Burnaston has a reliable electricity supply, although the Toyota
factory has recently installed some solar panels.

Good Communications: The UK now has very good broadband internet coverage and a
comprehensive mobile and landline network. Post is also fast and reliable making local and
international communications quick and efficient.

School and Hospitals: Derby is home to a new modern hospital (Royal Derby) and there are
number of good state schools and independent schools that workers can send there children to e.g.
Derby Grammar and Denstone College.

Political Incentives: The local government was very keen for Toyota to invest in the area and
helped with recruitment of all the workers - they had a dedicated job centre. They also promised to
complete the A50 road that runs past the Toyota factory.

Recreation: Derby has a major football club (Derby County) and numerous recreation centres (e.g.
David Lloyd Sports Centres), golf courses, cinemas and shopping centres (Westfield) so there is
plenty for potential workers to enjoy.

Physical Factors

Flat Land: The site near Burnaston was very flat and easy to build on (see photograph right).
Room for Expansion: The site also has a lot of room for expansion. In fact if you look at the
photograph to the right you might notice the slightly different colour roofs, this is because it has
already been expanded once.

Greenfield Site: Large parts of the site at Burnaston had not been built on (farmland) so there were
no clean up costs.

Pleasant Environment: Burnaston is right on the edge of the Peak District National Park which
means workers can live and relax in pleasant environments.
Toyota (Burnaston) Industrial System
Just like all industries, Toyota operates as a system with inputs, processes and outputs. Below are
some of the inputs, processes and outputs that take place at Toyota.

Inputs:
The things that are needed to create a product and therefore have to be added to the industry e.g.
workers or raw materials.
2.35million m² of land is available for the future expansion of the factory.
£1.15 billion capital was put in as investment money to build the Burnaston factory
2,590 workers work in the different department of the company
233 suppliers (tyres, paint, steel rolls, etc.) are located in the UK itself and other European
countries, 50% of suppliers UK, 50% of suppliers Europe
Limited number of supplies from Japan since the mother company has since decentralised

Processes:
The activities or events that take place for a product to be made e.g. designing, painting and
assembling.
Pressing (shaping) of metal panels to suit the models of cars being made,
Welding of metal panels and components together to produce the skeletal outlook of the cars,
Painting of car panels through the process of spray painting by computer-controlled robots,
Plastic moulding of the various fibre glass into the shape of the models made,
Assembly – the putting together of all the pieces by robots to produce the final output

Outputs:
The things that happen or are made as a result of the production process e.g. products, waste and
hopefully profit.
Totota Avensis (68,367 cars) and Toyota Auris (68,687 cars) and others such as Toyota Carina
E (1992–1997), Toyota Avensis (1997–2018), Toyota Corolla (1997–2007)
and Toyota Auris (2006–2018)

The factory completes a car every 89 seconds at Burnaston – 3,000 vehicles a week and on
average 150,000 a year. Of that total, almost 90% are exported to overseas markets, principally in
Europe, reinforcing Toyota’s key status in UK manufacturing, 15% sold in UK, 70% sold in
Europe, 15% sold worldwide