Factors Affecting Location Decisions

Country factorsRegion factorsLocal factors
Government rules, attitudes, political risk, incentives
Culture & economy
Market location
Labor availability, attitudes, productivity, and cost
Availability of supplies, communications, energy
Exchange rates and currency risks
Attractiveness of region (culture, taxes, climate, etc.)
Labor, availability & costs
Costs and availability of utilities
Environmental regulations of state and town
Government incentives
Proximity to raw materials & customers
Land/construction costs
Site size and cost
Air, rail, highway, and waterway systems
Zoning restrictions
Nearness of services / supplies needed Environmental impact issues

Source: adapted from: Heizer/Render – Principles of Operations Management, 5th Edition, and Operations Management, 7th Edition, New York: Prentice Hall.

[To be updated with a graphic image]