Labour supply
Regional training centres might be set up and local traditions and culture can encourage
and develop relevant skills. In a textile-producing area, for example, local colleges may
supply relevant training programmes and family ties and connections encourage generations
of workers to seek work in the local industry.
Suppliers
Component suppliers, consultancy firms, specialised financial services, haulage firms,
etc. are likely to locate in the close vicinity. Such proximity, and the specialised services
provided, can prove advantageous.
Social infrastructure
Governments and local authorities often encourage firms to relocate geographically by
providing favourable social infrastructure such as good transport links. Other examples
of social infrastructure include housing, schools and training facilities. The lack of adequate
infrastructure can involve the firm in additional cost.