These days, governments in some countries are encouraging industries to move their manufactures to regional areas outside big cities. This movement has beneficial and detrimental impact both for industries and cities. This essay will explain the positive and negative impacts before articulating my perspective on this contentious issue.
To commence, most of big cities in the world have industries inside their jurisdiction. However, the idea having manufactures in the cities has shifted where government take into account to move the industries outside the cities. Such requirements will be beneficial since the industries will located close to the raw materials. For instance, textile industries will easier to find the raw materials for their manufacture which will reduce the production costs. In addition, having industries outside the cities will reduce the air pollution which is good for cities environment. For instance, Bandung City has moved the chocolate factory outside the city which make their air quality index better than before.
Conversely, the industrial movement outside the cities also has some drawbacks for the industries. On the other side, industries that move to outside the city and distance from the market will experience the increasing of supply chain cost. Take for instance the food industries that have to supply urban areas. The cost will be doubled as they exported the food from rural areas and need energy as well. Furthermore, the highest cost in supply chain will also impact the price of products.
In a nutshell, the policy to move the industries in sub-urban areas will have the pros and cons. Such pros include close to the raw materials and reduce air pollution in the cities, while the cons include the increasing supply chain cost and price of products.