Factors Influencing the location of Industries : Geographical and Non-Geographical Factors

1. Proximity to source of power. This location factor was important in the past when coal was the main source of power. This is because coal is bulky and heavy to transport and industries that needed abundant power were forced to locate near the source of coal. The introduction of new forms of power today has however greatly reduced the influence of power as a location factor.
2. Nearness to the source of raw materials. This factor is important where the different between the weight of the raw materials and finished goods become the deciding factor of where production should be sited. This is called weight-loss ratio. When the industry is bulk reducing it tends to be located near the sources of raw materials.
3. Nearness to source of labour. This factor attracts mostly labour intensive industries which tend to be located where there is an ample supply of the right caliber of labour especially if the type of labour required is highly specialised and therefore geographically immobile. 
4. The creation of Industrial zones. These areas where government gives tax concessions to industries. The intention is to encourage industrial development in such areas and also to organize the country or towns they are fund in.
5. The growth of large towns. Large towns tend to provide an abundance skilled labour today and also act as source of market for industrial products. It explains the the location of most industries in major towns in the world today.

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