25. Secondary Economic Activities 25.4 Change Over Time in the Location of Industry
Industries can change location over time. Factors that may cause an industry to change its location include:
A change in demand for the product A change in the size of the industry.
Why Do Industries Change Location? When a product becomes popular and new markets for it are created, there is an increase in demand for the product. The first factory is often unable to meet this increase in demand. New factories in new locations are set up to meet the growing demand.
Case Study: Kerry Group
Kerry Group began as a small dairy company in the south-west of Ireland in 1972 and has grown into a global multinational. It now has locations across Europe, Asia and North America. Kerry Group’s headquarters are still located in Tralee. Co. Kerry.
The company started out producing dairy products but has expanded its range to include dairy alternatives, alcoholic drinks and ingredients for food, beverage and pharmaceutical industries.
Kerry Group opened a new facility in South Africa in May of 2022.
Many foods can be made from Kerry Group’s range of products What Factors Caused This Expansion?
Demand The new facility in South Africa will produce dairy alternatives. Oat milk is already in high demand across the continent of Africa and Kerry Group is the leading supplier there.
Sustainability
As the population in Africa continues to grow, so too does the demand for food. Parts of South Africa are unable to meet the demand for natural milk. Kerry Group works with companies using oat milk to improve their products as an alternative to dairy. The oats used are produced sustainably to have as little impact on the environment as possible.
Explain two factors which can cause an industry to locate in other regions.