Raw material
The type of of raw materials used by the factory will help decide its location. If the raw materials are bulky, the factory will need to locate near them to cut down on transport costs.
Transport
A factory needs to be able to get its raw materials in from its suppliers and its finished products to the market. It may need to use different forms of transport for this to happen, such as air, sea road and rail.
Services
Factories need services such as water, electricity and Wi-Fi to be able to do business. Factories will locate where these services are easily accessible.
Labour
Factories need workers. Due to this, factories will locate near towns and cities, as these places will provide the workforce. Depending on the type of work these workers will near to do, they will need to be skilled or semi-skilled.
Market
The market is anywhere the finished product can be sold. This includes online sales. Depending on the product, the factory may or may not choose to locate near its target market.
Linkages
Factories that use and rely on products produced by another company may locate near each other in order to cut down on transport time and costs.
Capital
To cover the costs of building a factory, buying raw materials, paying the workforce, covering transport costs and lots more, a company needs money. This money can come from investors, banks or the government.
Government and EU Policy
The Irish government has different agencies that help companies setting up in Ireland, or Irish companies setting up abroad. They do this by giving loans or grants to companies to help them.
Personal Preference
A person setting up a new business or building a factory can do so where they live or in a location they prefer. They do this for a number of reasons, such as to bring employment to their local area.