Pakistan Studies

Establishment of an Industry in a Place – Human and Physical Factors

Setting up of an industry is a product of a well thought plan

The establishment of an industry is a result of a well-thought plan. Industrialists need to take into account a number of physical and human factors before setting up an industry in a particular place. 

Physical factors

1. Natural routes

The most suitable industrial sites are the areas that have connections with other countries and regions via natural routes i.e. sea routes, mountain passes, etc. Nearness to natural routes reduces the transportation cost and time. In other words, the transportation of raw material to the industrial site and finished goods to different markets become easy and cost-effective.

2. Site selection

Site selection holds huge importance before setting up any business or industrial plant. The business people and industrialists examine the suitability of the land before. That is to say, they look into the targeted size, level, and prize of the land. Furthermore, they also consider possible changes to the land, in later stages, in order to suit the future needs of the industry. 

Human Factors

1. Capital Investment

Capital refers to the finance needed in the establishment of management of industry. It is the first and foremost requirement to meet different needs, e.g. buying the land, paying the salaries of labor, purchase of industrial plants, etc.  Similarly, the industrialists need finance to transport raw materials to industrial sites and finished goods to the market. Thus capital investment holds a central place among all other factors when it comes to setting up a new industry. 

2. Availability of raw material

The term ‘raw materials’ refers to the basic substances or commodities processed in a factory to make finished goods. Raw material can be in form of primary, processed, or manufactured products. The labor process raw material to make other goods.

Thus, before establishing an industry in any place, it is important to make sure that they have easy access to the required raw material. The presence of raw material makes the region feasible for the establishment of the industry. Its availability in abundance makes it cost-effective by saving transportation costs and time.

3. Availability of labor

The term labor refers to the workforce employed by an industrialist. Labour is an important industrial input that helps operate all processes of industry. Industrialists consider the availability of a skilled workforce in any region before setting up an industry. Unavailability of labor in the area costs high because hiring labor from other areas will be relatively more expensive. 

4. Government policies

Government policies are another factor that requires serious attention before the establishment of an industry. The manufacture and sale of certain goods are illegal.  Violation of this policy can lead to legal action against the industry. Therefore, it is very important to make sure the industry is in alignment with government policies. Hence, the establishment of an industry always needs prior permission from the government especially in areas that are sensitive from a defense point of view.

5. Availability of power

Industrial processes like smelting, the function of machinery, etc. need high power. Without power, the industries cannot operate. In the areas where there is a shortage of power or where there is no electricity, industrialization cannot take place. 

Noor Akber

I am a social activist and educationist. I write on politics, culture, education and economy.

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