Chapter 26 What Is Place?
321
Have you ever visited a store, just to find that it
was closed? Name the store and its products.
Which hours is it open? Which hours do you
think it should be open? Why?
3
Reality Check
Site Selection for Other
Businesses
Manufacturers have different location
needs from retail businesses. One of the
manufacturer’s major costs is transporting
raw materials and supplies (production
inputs) to the factory. As a result, most
manufacturers locate in places where the
manufacturing input can easily reach them.
They also need to have access to good
transportation, so the finished products can
quickly and easily be delivered to customers.
Manufacturers also need to be located in
areas where there are enough workers for the
factory.
For example, cereal manufacturers
such as Post and Kellogg are located in
Michigan. One of the major inputs for
cereal is grain. Michigan has many grain
farms. Many workers are available in
the cities of Michigan. Grain processing
equipment suppliers are located there, too.
After the manufacturers produce the cereal,
their output is shipped to grocery stores
throughout the world.
Manufacturing companies in the same
industry are often located near each other.
For instance, pewter and silver manu­fact­urers
are concentrated in Rhode Island. They
located there long ago, to be near sources of
precious metals (their input). Rhode Island is
also close to East Coast transportation
systems to send their output to stores. Many
pewter and silver manufacturers are still
located in Rhode Island.
Geographic concentrations of
manufacturing industries are efficient.
Suppliers for that industry locate nearby to
provide specialized services, equipment, and
parts to the manufacturers. Concentrated
locations also make it easier to sell the goods.
The purchasing agents for that industry can
go to one area and see goods from many
competing companies.
Service providers also concentrate in
geographic locations. Many banks and
stock brokerage firms have headquarters in
New York City. New York was the financial
business center for early America. It has
remained as the financial business center
because many of the supporting industries
are located nearby.
Have you observed certain types of
businesses locating in a specific area in your
neighborhood, town, or city? Give one example
and suggest why the businesses located there.
3
Reality Check
26-5
Mail-order retailers offer customers the
convenience of ordering from home by mail,
phone, or Internet.