Business Ideas Location of factory and plant

[Mastergp]

The location of factory is not done without thinking even though there is no specialized set of rules put up as the primary determinants. However, it is not an overstatement to say that the location of the factory affects the cost and demands these all important considerations. The two major issues of concern here is the general area or location where the factory is to be sites and the second is the critical survey that will show the particular possible site spot. In our contemporary times, the following are some of the determinants of factory location:

The proximity to others companies:
Where the factory is connected to other companies as a unit or as a supplier or customer, it will be advisable to site it closer to those group of companies that have business relationship with it.

Proximity to raw material source:
Producing firms cannot manufacture unless the material inputs are available. The closer a firm is to her raw material source, the easier it is manufacture on time because of quick supply of raw material and more especially the cost will reduce due to proximity.

Availability of social amenities:
Absence of social amenities like electricity , water, waste disposals, communication systems,good road network and even drainage, will negatively impact on the success of the entrepreneur.