Definition of "Location analysis"
The appraisal of a general geographic area for a particular use. For example, an industry may choose a location within a general geographic are which may be several hundred square miles in size because of its proximity to the general market area it serves. Location analysis must consider several factors:
- Business climate: The area of a growing market. What are its outstanding commercial and industrial features?
- Demographic data: Size of the population, its growth rate, composition in terms of age, family size, and educational attainment.
- Geographic features: What topographical features does the location have? What is its climate like?
- Income: Personal and family income is an important consideration in determining a good fit with other requirements.
- Markets: What commercial markets does the area have? What are their features and size? What are the consumer markets like?
- Transportation: Access to major highway, availability of airports and air service, and railways.
- Zoning: How is the land being used? What percentage is it commercial, industrial, agricultural, and residential?
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