about / contact / guestbook / mail list / policy / sitemap / learn on the internet


Location of Industry

Iron and Steel
Car Production Sites in the UK
The M4 and Western Crescent
Case Study - Lucky Goldstar
The Tertiary Sector
What might the examiner ask?


There are many factors that affect the location of industry. The type of industry will determine which factors will influence the location. For example industries which use heavy and bulky materials will locate close to the raw materials e.g. an iron and steel works will locate close to iron ore and coal. If the raw materials are imported, a coastal location may be chosen.

Iron and Steel Industry

Coal + iron ore + limestone = iron and steel

The Iron and Steel industry is influenced by access to raw materials:

  • On coal fields
  • On Iron Ore Fields
  • On the Coast

    Changes in the location of the iron and steel industry in the EU:

      What are the changes?

    In the past iron and steel factories were located close to raw materials such as iron and coal. They are now mostly located close to deep-water ports.

      Why have the changes occurred?

    1. Raw materials have become exhausted. Raw materials are now imported from other countries.
    2. Deepwater ports needed as raw materials are transported using bulk carriers
    3. Close to water needed in the cooling process
    4. Plants are now integrated
    5. Governments and EU Policy has affected the location of modern steel works.

    Case Study = Port Talbot, South Wales

Car Production Sites in the UK

Location factors:

  • Access to markets
  • Skilled labour
  • Foreign investment
  • Government Initiatives
  • Political Decisions

    Case Study = Rover, Longbridge
    Case Study = Nissan, Sunderland

The M4 and Western Crescent

M4 Corridor - Area of development for Hi-Tech industry along the M4 Motorway spanning from London to Bristol (South Wales).

Location factors:

    1. Accessibility
      • Good road links (M4)
      • Good railway links
      • Heathrow Airport provides links to Europe and the rest of the World
    2. Research opportunities
      • Close to science parks and Universities
    3. Footloose - therefore they can locate freely
    4. Government Incentives
    5. Attractive Countryside
      • Marlborough Downs - attractive environment favoured by educated people employed in Hi-Tech industry.

Case Study - Lucky Goldstar

Lucky Goldstar - Located a large development in Newport South Wales.


    • Welsh Development Agency (WDA) secured the deal
    • Government paid £180 Million in subsidies to LG
    • Accessible - M4 corridor etc
    • Semi-skilled labour force - once employed in the now decline Iron and Steel industry

The Tertiary Sector

The concepts of threshold and range

Every shopping centre of service has its own threshold population. This is the minimum number of people who are in the market area to make the shop profitable.

A Porsche show room has a very large threshold population. This is because not many people in any area buy many cars.

A sweet shop has a small market area. This is because people buy sweets and newspapers regularly, so the shop can make a profit with a fairly small threshold population.

The range of a shop is the distance people are prepared to travel to visit a shop.

Porsche buyers have a long range. People do not buy Porsche cars very often so they are prepared to travel a long distance. The sweet shop has a much smaller range. People will not travel a great distance to buy a newspaper.

What might the examiner ask?

    1. What raw materials make steel?
    2. How do they reach the steel works?
    3. The importance of site requirements
    4. Example of coastal/ore/coal field locations
    5. Why have location factors changed in the Iron and Steel/Automobile industry?
    6. What is the impact of economic change (growth and decline)?
    7. What is the role of the Government in locating industry?
    8. What is the threshold population of a shop?
    9. What is the range of a good?
    10. Case study of a high order centre (e.g. Meadowhall)
Learn on the Internet © 2008