Business Studies – 4.6.1 Main factors which influence location decisions | e-Consult
4.6.1 Main factors which influence location decisions (1 questions)
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Recommended Location: A location within a well-established industrial estate near a major port, such as the South Wales Valleys or the Humber region.
Justification:
- Transport Costs: Proximity to a major port (e.g., Milford Haven, Immingham) significantly reduces transport costs for raw materials and finished goods. This is crucial for a manufacturing business dealing with large components.
- Skilled Labour: Industrial estates often have a concentration of skilled workers in manufacturing, engineering, and logistics. The South Wales Valleys and Humber region have a strong history in these industries, providing a readily available workforce.
- Infrastructure: Industrial estates typically have the necessary infrastructure, including reliable power supply, water, and waste disposal systems.
- Government Incentives: Governments often offer incentives to attract manufacturing businesses to specific regions, such as tax breaks and grants. These incentives can help offset relocation costs.
- Supply Chain Integration: Being located near other automotive suppliers facilitates supply chain integration and reduces lead times.
- Land Availability: Industrial estates usually have available land for expansion and future growth.
Alternative Considerations: A location near a major motorway network could also be considered, but this would likely result in higher land costs and potentially higher transport costs for long-distance shipments.