reasons for the concentration of industries

reasons for the concentration of industries in urban centres. Reasons, why many industries are located or concentrated in urban centres (cities and towns), include: Large market:

The presence of a high population in urban centres provides a wide market for industrial products.


Availability of labour: The high population also provides both skilled and unskilled labour for the industries and that\’s reasons for the concentration of industries

major reasons for the concentration of industries in cities and developed centres

Good transportation network: Urban centres are provided with well-developed transport networks like roads, railways and airports as reasons for the concentration of industries

Nearness to seaports and airports: This also contributes to the sitting of industries in urban centres.


Availability of finance: Easy access to loans from banks located in cities also contributes to the reasons for the concentration of industries in the cities

Presence of infrastructural facilities: The presence of electricity, pipe-borne water and telephone also contributes to the concentration of industries in urban centres.

Reasons for Sitting Industries in Rural Areas in Nigeria

Development of rural areas,: The sitting of industries will lead to the development of rural areas.

To discourage rural-urban migration: When industries are located in rural areas, it will go a long way in discouraging the movement of people from rural areas to urban centres thereby reducing major reasons for the concentration of industries which is known as urban migration

Provision of employment: Industries established in rural areas will provide employment for skilled and unskilled labour in rural areas.

 Increased production of goods: Industries that are located in rural areas will increase production of goods to the rural populace as reasons for the concentration of industries

Increased earnings for rural people: The rural people so employed in industries are able to earn more salaries from their places of work.

 Encourages urban-rural migration The sitting of industries in rural area will also attract the movement of people from the cities back to the rural areas, thereby de-congesting the cities.

general reasons for citing of companies or industries all over the world

The concentration of industries in specific regions or areas can be influenced by several factors. Here are some common reasons for the concentration of industries:

    Availability of Resources: Industries often cluster in areas where key resources are readily available. This includes access to raw materials, energy sources, water, and other essential inputs. Proximity to these resources reduces transportation costs and improves operational efficiency.

Like the building of a petroleum refinery in the Niger Delta area of Nigeria due to the availability of Crude oil deposits.

    Skilled Labor Force: The presence of a skilled labour force is crucial for many industries. Companies tend to locate in areas with an abundant supply of qualified workers who possess the necessary expertise and knowledge.

Concentration in specific regions allows for easy recruitment and access to a skilled labour pool.

    Infrastructure and Transportation: Well-developed infrastructure, including transportation networks (roads, railways, ports, airports), communication systems, and utilities, is important for the efficient movement of goods and services.

Areas with robust infrastructure tend to attract industries due to the logistical advantages they offer.

    Market Access: Concentrating industries in close proximity to large consumer markets can provide a competitive advantage. Access to a local market reduces transportation costs and allows for faster distribution of products.

Additionally, clustering industries together can create a supply chain ecosystem that supports various stages of production.

    Knowledge Exchange and Innovation: Industries often cluster to facilitate collaboration, knowledge sharing, and innovation. When companies in the same sector are geographically close,

 it becomes easier to exchange ideas, share research and development (R&D) facilities, and collaborate on new technologies. This fosters a culture of innovation and can lead to the creation of industry-specific clusters.

  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
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