Why Manufacturing is here
Location of Markets
Availability of Fresh Water and Electricity
Labour supply
Transportation
Proximity of Raw Materials
Political Factors
Circumstances
perishable foods companies near agriculture
saw mills, steel mills located near mines
Example: McCain Foods:
Located in New Brunswich where potatoes are gorwn.
Advantages
Manufacturing located near markets
delivery costs low
delivery times short
example: Auto parts manufacturing, just-in-time policy
steel makers, oil refineries, etc. need water for:
cooling
cleaning
example: Alcan Inc
aluminum company near Quebec's electrical power plant b/c it needs power: 13,500 kWh to make one tonne of aluminum.
Cheap labour supply declined in Canada
difficulty competing with India, China
companies find highly educated, labourers with technical skills
this labour force is near university towns, cities.
Companies need fast, efficient transportation for products. Therefore, are located near seaports, airports, rail lines, and major highways
politicians may offer companies incentives to locate in their jurisdiction
interest-free loans
reduced land tax
free land to build
subsidies
example: Dow Chemical Canada Inc. near pipeline