Materials. In 19 th cent, industry located close to raw materials (and sources of power) due to immobility of the raw materials, which were heavy to move due to expensive and inefficient transport... Now, materials can be described as footloose as industry is rarely tied to the location of raw materials. There is greater efficiency in the use of raw materials, power is more mobile, transport networks have improved, as has technology... Industries which need to be located near to raw materials are those using materials which are heavy, bulky or perishable or which lose weight or bulk during the manufacturing process. (Refer to Weber.

) Power supplies. Early industry tended to be located near to power sources... Newer forms of power were introduced and the means of transporting it were made easier and cheaper... This locational factor has become less important. Transport. Webers locational theory...

Transport cost related to distance... Networks improved. Transport cost were major consideration when locating an industry. However, now these costs are approx.

2-3% of a firms costs. As a result, raw materials can be transported further. Markets. Pull of a market is more important than the location of raw materials and power supplies... Industries will locate near to a market if the product is bulky, there are many linkages involved, the product becomes more perishable after processing, the product is sensitive to changing fashions, the product has a short life span, the market is very large or if the market is wealthy. Labour Supply.

Previously, labour has been immobile... Fewer sem skilled workers... Increase in part time work and number of women working... Availability and skills of labour vary from place to place... Greater mobility of labour.

E. g. can work in EU member states. Government Policies. These aim to even out differences in employment, income levels and investment within a country... 1980 s Enterprise Zones set up...

Additional policies set up to help derelict areas. E. g. London Docklands, Liverpool, Manchester...

Also made attempts to attract foreign firms. E. g. Nissan, Toyota.

Agglomeration economies. Benefits that a firm has by locating in an area. Firm can achieve external economies of scale.