Locational behavior in manufacturing industries
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The whole scale of locational considerations has been expanded.
Managing operations in such an environment has become increasingly complex, especially with the globalization of production and consumption. Manufacturing strategies tend to use different locations for each component of a product in order to optimize respective comparative advantages and reduce input costs.
Transport requirements have proportionally increased to support and organize the related flows. The requirement of faster long-distance transport services has propelled the importance of air transport, especially for freight.
Air terminals have thus become a significant location factor for globally oriented activities, which tend to agglomerate in the vicinity. Additionally, the surge in long distance trade has made logistical activities, namely transport terminals and distribution centers, at the forefront of locational considerations. Technological changes have also been linked with the relocation of industrial and even service activities. Global telecommunication facilities can favor the outsourcing of several services to lower cost locations. The location of economic activities is a priori dependent on the nature of the activity itself.
While in the past locations were mainly considered at the scale of industries such as petrochemicals, the focus is now more on the specific activities involved. This allows for a wider range of locations to be considered since it can focus on specific components or services. The location spectrum represents a range of requirements for a specific activity such as its material resources and non-material inputs labor and its outputs market. It underlines that covariance is important since the economic success of a location is more than often not just the outcome of a single factor, but of a combination.
Although each type of economic activity has its own set of location factors, some general factors can be identified by major economic sectors:. However, basic location strategies appear to be dominantly cost minimization or revenue maximization endeavors. Understanding location factors enables a better overview of the dynamics of the global economy and the associated territorial changes at the global, regional and local levels. Since accessibility is dominantly the outcome of transportation activities, namely the capacity of infrastructures to support mobility.
It presents the most significant influence of transportation on location. Accessibility plays an important role by offering more customers through an expanded market area, by making distribution more efficient in terms of capacity, costs and time , or by enabling more people to reach workplaces labor cost and qualification. While some transport systems have favored the dispersion of socioeconomic activities e.
All transport systems are bearers of spatial specialization and configuration. Because of the provided level of accessibility, new transport infrastructures influence the setting of economic activities. It becomes a particularly strong effect when new infrastructures are added to an undeveloped or underdeveloped site and thus locational decision tend to be simpler and unhindered by the existing spatial structure.
Locational behavior in manufacturing industries
There are therefore stronger locational impacts of transportation improvements in a less developed context than in the case of high density. The locational effects on activities are not always automatic or evident. They are important however when infrastructure is accompanied by social, economic and urban transformations.
New infrastructures therefore play a catalytic role, because they are able of transforming space through land use and mobility changes to which further improvements change in a more marginal fashion.
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Author: Dr. Jean-Paul Rodrigue The location of economic activities is related to their nature and function with each activity having a level of dependence on transportation. The Importance of Transport in Location The location of activities encompasses the concepts of site and its situation. This perspective can further be expanded by three interdependent factors in the global location of cities: Connectivity.
The city is located at load break point where cargoes are moved from one mode to the other, connecting two or more systems of circulation. The city is located in proximity to a major or several resource and serves as a convenient point of collection, distribution and transformation.
The resource can at a specific location e. The city serves a hinterland in the provision of goods and services with its size a function of the density. Site and Situation Historical Urban Location Factors Factors in Urban Location Strategic Decision Making in Location Behavioral Approach to Location Most of location theories have an explicit or implicit role attributed to transport since accessibility is an important factor in the location preferences of firms and individuals.
At best, the following observations concerning transportation modes and terminals and their importance for location can be made: Ports and airports. Main port and airports facilities, particularly the networks they support, have been important factors in the reduction of transportation costs, particularly over long distances.
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These facilities are also important drivers of c o-location of related activities, particularly for ports since inland distribution costs tend to be higher. Roads and railroads. Road and rail infrastructures provide a structuring and convergence effect that varies according to the level of accessibility and density.
In addition to reduce transport costs, efficient roads and railways support higher density levels of economic activities. For rail transport, terminals also have an important co-location effect with the setting of inland ports. They provide no specific local influence, but the quality of regional and national telecommunication systems tends to ease transactions.
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Telecommunication systems benefits from higher densities since it becomes more effective to service a customer base. With the ongoing digitalization of transportation, information technologies impact mobility in numerous was, mainly by allowing the providers and consumers of transportation services to better interact. Location Spectrum and Factors The location of economic activities is a priori dependent on the nature of the activity itself.
Although each type of economic activity has its own set of location factors, some general factors can be identified by major economic sectors: Primary economic activities. Their dominant location factor is related to environmental endowments , such as natural resources. For instance, mining takes place where economically recoverable mineral deposits are found and agriculture is subject to environmental constraints such as soil fertility, precipitation and temperature climate.
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Primary activities are thus characterized by the most basic location factors but have a strong reliance on transportation since their locations are rarely close to markets and they usually concern ponderous goods. Summary of bilateral linkages and associations by industry. Correlations between employment estimates for three subdivisions of ten sample industries.
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