Militant trade unionists disturb the amicable industrial relations, which gives rise to strikes and lockoutsVarious types of taxes is levied in city areas. Sometimes multi-story buildings are used which are not suitable for the installation of heavyplant and machinesDue to high standard of living in city area, the cost of labour is relatively highDue to possibilities of changing jobs from one unit to another, and tendency of competitors to snatch away the good employees, the rate of labour turnover is very high in city areaThe trade union movement is very strong in city area. Certain specific municipal services facilities are available only in the city areas, like water supply, drainage, fire fighting facilities, sufficient police protection etc.ĭisadvantages of Urban or City AreaThe cost of land is very high as compared to rural areasEven at high cost, sufficient land is not available, which puts constraints on the arrangement of plants and machines. Due to large population,The local demand for the product is fairly high.Facility of the ancillary and services units, which develop around theindustrial strip of the city area.Sufficient passenger transport facilities by road and railways are availableto employees.Development of the training institutes for workers and management institutes for executives put the city area units into privileged position.Educational, medical and recreational institutes increase the amenities of lives in the city area.
Secondary Factors :Natural Factors:Government Subsidies and Facilities Personal FactorsMiscellaneous Factors :Suitability of the landDisposal of watersAvailability of Water and Fire-fighting FacilitiesCommunity attitudesĪdvantages of Urban areaGood transport facilities are available for the movement of raw-materials and finished products by rail and road and at times, by water and air.Good and prompt postal and communication services are available.Banking and credit facilities available.Services of insurance companies are available in city areas.Sufficient storing facilities including cold-storage, are available.Ample availability of skilled and unskilled workers.Advantages of vicitinty of the market for the product. Plant location studies are conducted in three phases :Regional factors ,Community factors, andSite factorsįactors Affecting the Plant LocationThe location of an industry is determined by taking into consideration the following factors:Primary Factors:Supply of raw materialsNearness to the marketTransport FacilitiesSupply of LabourAvailability of powerSupply of Capital It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. Plant LocationPlant location refers to the choice of region and the selection of a particular site for setting up a business or factory.An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain.
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