Major Factors Affecting Manufacturing Industries

Manufacturing Business

Manufacturing Industries

Setting up a manufacturing industry depends on geographical, political, and human factors. If one element is not readily available, the cost of production will rise, which will affect pricing.

Raw Materials

The availability of raw materials is among the top factors that affect manufacturing industries. Most industries are located near sources of raw materials to save on transportation costs. Some raw materials can be perishable, and so they can’t be transported long distances.

Government Policies

Most governments have regulations affecting the location of an industry. In most cases, they discourage industries in urban areas due to air pollution and clustering in cities.


Manufacturing industries rely on raw materials to produce finished products. So, the industry should have a reliable transport network such as water or land to get a sufficient supply of raw materials for marketing purposes.


The invention of various technologies has increased productivity in industries. For instance, the use of machines means industries can produce more at lower costs, leading to sustained growth.


The common sources of power are mineral oil, coal, and electricity. Most industries tend to concentrate near sources of energy. However, electricity can be transmitted long distances by the use of wires.


The process of manufacturing cannot be completed until goods get on the market. The closer the market is to the industry, the easier the selling process will be. This helps to reduce transport costs, which in turn enables customers to buy goods cheaply.


EEI manufacturing industries rely on the workforce for production, and they require both skilled technicians and casual workers. Industries in areas with a lower population have higher labor costs because they’ll have to import workers.

Manufacturing industries help in economic growth and improve the standards of living. For continued growth, the industry should have a constant supply of raw materials, a source of power, good infrastructure, and available labor and market.