Business Studies – 4.6.1 Main factors which influence location decisions | e-Consult

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.