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Evaluate the factors that influence the decision-making process when locating a modern industrial plant.

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Introduction

Evaluate the factors that influence the decision-making process when locating a modern industrial plant. It is important to understand that both human and physical factors are essential in order to explain the particular location of an industrial plant. Obviously this varies depending on the industry, as just one factor can override all others in the final decision made by a specific firm. There are various human factors which influence industrial location, and which interlink with each other. The idea of agglomeration or the co-location of two or more industries together, is an important one, because it would result in the industries sharing the costs for transport as well as the cost of land values, which could be favourable id they are locating in a highly valued area. However, the disadvantage could be a reduction in the availability of labour, due to other industries requiring sufficient labour. As well as transport costs, access to the plant is equally essential so that the transport costs will not become too heavy. ...read more.

Middle

Honda's history of investment in the UK is interesting, as it highlights the importance of the availability of labour, as over a period of ten years, Honda have constantly created more jobs in accordance with its success. However, when Honda did see fit to cut their car production at Swindon in April 2000, by 50%, the workers were re-deployed on training schemes so as not to lose their skills, and to have them ready for a new production line. Honda also demonstrates how important markets are to them as well as product life cycle by re-locating to many other parts of the UK, although the Swindon plant always remained intact during this time, up until recently. Honda will re-locate its Swindon-based parts distribution business to a new warehouse on the South Marston estate for September 2005. Although human factors outnumber the physical ones, it nevertheless doesn't mean they are of lesser importance. ...read more.

Conclusion

Nevertheless, because of the enormous market of South Wales goods, raw materials and markets, especially the trade from those in Cardiff ensured that the influence of South Wales coal remained. But over a period of 40 years, over twenty coal plants were shut down with only one remaining, although the steel industry remained solid with over thirty plants still active. Although access was becoming an increasingly more significant factor, it was industrial inertia above anything else which led to the continuation of production in South Wales. Having evaluated both human and physical factors as well as using specific examples of industrial location, it has re-affirmed the idea that when locating a modern industrial plant, different factors matter to different industries, with there being no single common factor which is important above everything else. However, it is common view, that the more profit an industry makes or the more money it possesses initially, the better location for its plants it should be able to obtain. ?? ?? ?? ?? William Cooper ...read more.

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