[CHAPTER 7: PHYSICAL FACILITIES]

PRINCIPLES OF INDUSTRIAL MANAGEMENT

PLANT LOCATION
The nature and emphasis of the factors in
plant location vary among industries and with
changing technical and economic conditions.
Some industries have tended to follow their
markets in the location of their plants; other,
such as the textile industry have located around
the sources of power; still others, the iron and
steel industries, have tended to seek the source
of their raw materials.
STEPS IN SELECTING PLANT SITE
There are three main steps in locating a
plant.
1. Selection of the region in which the
plant is to be located, usually requires
consideration of these five factors: (1) proximity
to the market; (2) proximity to the necessary
materials; (3) availability of transportation
facilities; (4) adequacy of public and private
services such as power, water, fuel, and gas; and
(5) favorable climatic conditions.
STEPS IN SELECTING PLANT SITE
2. Selection of the particular community.
Which of all the communities in the chosen region
can best supply the needs of the individual
enterprise.
1. a labor supply that is adequate in numbers
and in types of skill required;
2. wage scales that are competitive with or
lower than those paid by other firms in the same
industry;
3. other enterprises in the community which
are complementary or supplementary as regards
raw materials, products, labor demands, and skills
used.
STEPS IN SELECTING PLANT SITE
4. a friendly and cooperative attitude
toward industry
5. moderate taxes and the absence of
restricting laws and ordinances
6. favorable living conditions and
standards which label the community for both
key and rank-and-file employees as a good place
in which to live.