the concentration of industries in particular areas. If for instance, electricity is to be carried over to a long distance where the industry is located or the coal which serves as raw material is to be transported at a far-off distance from whereat is extracted, it will not then he economical to set up the industry at such places which are far away from the sources of power.An industry can move near to the firms that are producing, perhaps, the raw materials that the industry uses for the production. This can be on the advice of the group of firms producing the raw materials.critical factors which encourage the birth of an industry in a specific location. The availability of raw material close to the location of the industry helps considerably in mitigating the transport cost and so the overall cost of production of such goods. This is why most industries are built close to the raw material.commodity and the recognition of that location could be one that might be heard of within the entire united states of america or even in the international marketplace.what's being produced or servicesgeographical location becomes specialize in the production of certain goods and services. The location becomes known to offer production of such commodity and the popularity of that area could be one that would be heard of in the entire country or even in the international market.availability of an energy supply source to the location of the industry such as electricity, oil, or coal helps the industry to operate its machines and equipment well for a purpose of the production process.market is important factor to consider before starting an industry, an entrepreneur has to take into consideration the market potentialities of his product. If the market is quite away from the place of manufacture, transport costs will be high which will raise the selling price of the product in comparison with other similar products which are manufactured near the market.