Page 154 - SST Class 08

Raw Material and Power Resources perishable in nature like milk, vegetable etc.
The basic material used by any industry to convert
into another product by the manufacturing process
are raw materials. Industries tend to locate near
the source of raw materials. This is done to save
the cost of transport of raw materials from the
mines to their industrial units. Industries using
heavy raw materials like wood, coal and iron ore
etc. are mainly located near the source of raw
materials.
Power supply is a basic need of an industry.
Uninterrupted supply of power at the required rate
helps in the growth of an industry. Coal, mineral
oil and electricity are important sources of power
for industries. Most of the industries tend to be
located near the source of power.
However, with the introduction of
hydroelectricity, this situation has changed as
electricity can be transmitted over large areas. But
the industries needing coal or oil for energy
continue to be established near the sources of
these sources of energy.
Land and Capital or Finance
For setting up a large industrial plant, flat land is
preferred as it makes easier and less costly to build
and operate the plant and there is always space for
future expansion.
Capital is required for several purposes viz
purchase of land, capital goods, raw materials and
operational expenses. Therefore, there should be
proper banking and finance facilities around the
industry.
Cheap and Efficient Labour
For industry, labour is a one of the important
factors. There should be easy, cheap and skilled
labour available for the production process. The
population residing in and around the raw
materials sources can be employed for unskilled
activities in industries but for machinery work
there should be skilled labour available.
A Developed System of Transport
The presence of a good transport network of
roads, railways and airways is important for the
location of industries. Some of the goods are
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Before they get perished they have to be
transported to market. And this is possible only
with the availability of goods transport network.
Location of Market
After the processing of raw materials, distribution
of finished goods is the most important activity so
that the products can reach the targeted
consumers. For this, access to market is needed.
Proximity to market is useful. However, at present
with the availability of fast means of transport, this
factor is not very important as goods can be
transported to far-off places in no time. But this
remains a crucial factor for goods of perishable
nature, such as food and dairy products.
Government Policies
These determine which parts of the country or
states need to be developed and accordingly,
development is encouraged in those areas. Often
the government offers subsidies in the form of
lower rent or easy loans to industries that set-up
their plants in backward or remote areas.
INDUSTRIAL REGIONS
The area which have high concentration of
industries are called industrial region . When an
industry develops at a location, people settle in
the region to take advantage of the employment
opportunities it provides. Transport facilities and
facilities for banking, power supply, water supply
etc. are developed to serve the industry and its
employees. The industry also attracts other
industries, which use its products as raw materials
or make use of the facilities available in the
region. This leads to a high concentration of
industries in the region. And such a location
becomes industrial region. Important industrial
regions are often located in temperate region, near
the seaports and mainly near the coal mine
regions.
Major Industrial Regions
q Eastern North America : North-eastern USA
and South-eastern Canada.
q Western and Central Europe : North-south
pattern from Scotland through England