This theory is also termed as east cost theory because it says that the location can minimize the cost and increase the profit. Weber was the pioneer of Industrial Location Theory because he gave his model in 1909.
Salient Features of Weber’s Theory:
- There is one central market for the producers and the consumers.
- The location of the raw materials is fixed and predetermined without any further change.
- Abundant labour is available. The wages are fixed and the labour is not mobile.
- The population is equally distributed and has common economic system, culture and control.
- There is a uniform transport system in the region.
- Transportation, labour and agglomeration form the basis of the Weber’s Location Theory.
- The transportation cost includes the assembly cost and the marketing cost.
- If the raw material is ubiquitous (water, clay, wood) the location of plant will be at the market.
- The plant will be located at the raw material if material is localized and gross (which loses weight).
- The location will be at the localized raw material if one raw material is localized and the other ubiquitous.
- The location of the plant will be at a distance inversely proportion to the relative pull exerted by the raw materials and the market if both the raw materials are localized and gross.
- The location of plant will be at the market if both the raw materials are ubiquitous.
- The plant will be at market if both raw materials are localized and pure (which does not lose weight).
- The least cost location in terms of the labour cost is determined by drawing concentric circles. These circles are drawn joining places with equal cost of transportation. Line of equal transport cost are called Isotims. But the lines connecting points of total transport cost are called Isodopanes and are represented by broken lines. The concentric circles are drawn from three sources termed R1, R2 and M. Then a place is selected which has minimum cost of labour and transportation.
- The plant should be based near agglomeration of of their industries with specialized equipment and services.
Criticism to Weber’s Theory:
Weber is no doubt the pioneer of lacation theory of industrial plants which has been inspiring many geographers and analysts since 1909. But with the passage of time, many more theories have also been put forward which explain all the modern angles of industrialization. Main points criticizing the Weber’s theory include the following:
- Weber’s contention that transport cost depends upon “distance the good is carried” has proved wrong. It is so because for specified distances the transport cost can change.
- According to Weber, the transport charges depend on weight only. This supposition is not correct because the weight transport charges also depend on nature of goods, value and the volume.
- According to Weber, the industries need none or two raw materials. Now most of the industries require many raw materials.
- Weber’s assumption that labour is not mobile has proved wrong. Now-a-days labour is very mobile. Labour unions enjoy control over the administration of industries.
- Smith, Isard and others have formulated new theories relating to the location of industry which answer all objections.