GEOG 597i
Critical Geospatial Thinking and Applications

The Significance of the Factors of Production

In industrial location, the factors of production may play more than one role. This is particularly true of land. Although industries generally require far less land than agriculture, the quality and price of land varies greatly from one place to another. Additionally, different manufacturing endeavors require different site attributes. For example, hot or cold temperatures affect some firms adversely, while at the same time have little impact on the operational costs of others. In any case, once a manufacturer has occupied a site, the cost of the property upon which a business is situated from that point on is fixed (in other words, the cost of occupying the site does not change with increases or decreases in production or sales).