Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 18 : Facilites Planning - Plant Location

Selection of Community

Selecting a particular locality or community in a region is the second step in plant location. Selection of community is influenced by the following factors:

1. Availability Of Labour:
   Despite the talk of mechanization or automation, the importance of labour cannot be omitted. Labor is an important factor in the production of goods. An adequate supply of labour force at a fairly reasonable wage rates is essential for smooth running of the organization. The development of the plantation industry in India is also been due to the fact that labour is cheaply available. Labour is of two types. 1. Skilled 2. Unskilled. It is the skilled labour which influences the plant location because unskilled labour is supposed to be available every where specially in our country. Eg.
   Glass industry – Firozbad, Lock industry at Aligarh, Knitting wears – Tirupur, Manufacture of sarees – Dharmavaram, Kanchepuram etc., are the examples of industries which are located near the supply centers of skilled labour. But now-a-days the skilled labour has lost his influence in the plant location because of mobility in the labour supply.
   But today labor is a deterrent factor in the development of the industries in a particular area. The attitude of workers union activities, industrial disputes have driven away the factories and discouraged new industrialists from locating new factories in particular places. The exodus of industrialists from Calcutta and Madras in search of new locations in the recent past illustrates this point.Similar fate awaits for textile mills in Bombay.


2. Civic Amenities For Workers:
   Besides the good working conditions inside the factory, the employees require certain facilities outside it. Recreation facilities, such as clubs, theaters, parks etc., must be provided. If the location is about to produce all these facilities will be naturally preferred. Any way if such facilities are not available, but advantageous in other respects, the management should provide all these facilities.


3. Existence Of Complimentary And Competing Industries:
   

   With respect to the following points it is preferred to have the existence of complimentary industries

   1. An industry in collaboration with others can secure materials on better terms than it alone. This will also help (concentration of group of industries) both for supplier and purchaser.
   2. Improves labour market from industrial relations point of view
   3. Other facilities like Banks, Insurance, Co-operative Banks etc., can come up.
   4. A group of Industries will normally attract the repair shops like foundry, machine shop tool making unit etc.,
   5. A reputation built up by the existing units can be shared by Problems relating to the procurement of raw materials, labour troubles and Government restrictions can be effectively tackled if all the units have friendly relation.
      “BUT CARE SHOULD BE TAKEN TO SEE THAT THE COMPETITION DOES NOT REGENERATE INTO UNHEALTHY RIVALRY”


4. Finance & Research Facility:
   Adequate working capital is most essential for successful working of any organization. A place where facilities exists for capital raising attracts new industries. This is particularly true in the developing country. But in Advanced country it is (where capital is not available uniformly) distributed evenly.
   In the course of working any factory may encounter a number of problems. Whenever a problem crops up it has to be examined and solved for a solution. Moreover the manufacturing unit has to be dynamic i.e., it should be on the lockout for new technology always. For this purpose, research facilities are essential and a place where such facilities are available naturally attracts new industries.


5. Availability Of Water And Fire Fighting Facilities:
   Some industries will be dealing with wet operations, which will need huge quantity of water. Eg. Textiles wet processing. These factories must be located nearby the places where water is available in abundant quantities.
   Industrial units are sucesstible for fire hazards. A fire may break out either from within or from neighbouring units. In this case adequate fire fighting facilities must be available, otherwise the loss will be considerable even though this is not a decive factor in location if facilities exists. The suitability of the location will enhance.


6. Local Taxes And Restrictions:
   In some cases the local authorities collect charges for the supply of water, electricity and other facilities. They impose certain restrictions on the location of new units in the public interest. It is natural therefore, for industrialists to prefer an area where such taxes and restrictions are least.