Why is there a rise in global industrial parks?
- Helps More Countries Promote Their Featured Resources
- Promotes Exports
- Helps Generate Employment
- A Great Investment
All across the world, it has been perceived that countries, especially in Asia, are seeing more and more of the potential of industrial zones. There has been a rise in global industrial parks through the years because it has proven to benefit countries greatly. While the situations and factors may vary per country, success is still guaranteed. Today we will be taking a look at the global implementation of industrial parks and why it plays such a big part in a country’s economy.
The Philippines: A Rising Country For Industrial Parks
One way to observe exactly how industrial parks have positively changed businesses and improved economies is by studying countries that are well-positioned to benefit from this the most. One example is the Philippines. The country has an abundant source of natural resources, a growing economy, quality manpower, robust infrastructure spending, and a strategic business location. Those factors, along with the successful implementation of industrial parks around the country, have attracted both local and foreign investment. How else have industrial parks helped a number of ventures grow and become successful? Read on!
Helps More Countries Promote Their Featured Resources
Creating efficiency and growth for businesses and the economy is one of the best benefits that industrial parks can offer. All countries undoubtedly hold a competitive advantage that anticipates both domestic and foreign needs. Once a country takes pride in its best resources, an industrial park can offer even more convenience and development.
Industrial parks became successful globally because they adapt to the country’s specific situations and build on their comparative advantages. Industrial parks aim to be an integral part of the long term growth and development of various industries. They take account of commercial sustainability, target markets, infrastructure availability, and innovation. Additionally, they can even take part in environmental sustainability. Looking forward, implementing industrial parks in a country will ensure long-term economic sustainability.
Promotes Exports
Since we’ve mentioned that industrial parks build on a country’s competitive advantages, you can easily see how this can be a great opportunity to promote exports. Exports play a huge role in a country’s economy because it increases employment and can be a cause of high economic growth.
Industrial parks take part in promoting exports by providing businesses with a more efficient way of producing high demand goods and products. These parks are also the best investment for exports because of the availability of infrastructural facilities such as electricity, water, roads, and telecom for the company’s convenience. Production can commence immediately and will minimize the waste of time and resources.
Lastly, it facilitates the conglomeration of certain industries. Because of this, there will be more synergy on skilled labor and other shared resources.
Can Help Generate Employment
Employment is one of the driving forces of economic development. Employment opportunities create increased consumer spending, stimulate economic growth, and loosen available capital. You might be wondering how industrial parks take part in all of this. Well, industrial parks undeniably create more employment opportunities which increase the mobility of labor.
Light and medium industries have labor-intensive units that create room and opportunities for workers. This is one of the reasons why a country like the Philippines is a rising economy. Not only do they see the importance of implementing industrial zones, but they have one of the most highly trainable workforces in Asia.
A Great Investment
When you look at the long-term satisfaction and development that industrial parks can provide to businesses, it’s easy to say that it will be a great investment. There is less initial investment and goods can benefit from the higher output. The successful utilization and implementation of this can bring strong returns to business and investors. Lastly, the vacancy cost of industrial property is lower and easier to maintain.
Key Takeaway
It is truly great to see how global industrial parks contribute significantly to each and every country. You can also perceive how their success will carry out a huge factor in employment, exports, and attraction of foreign investment and new technologies. As the years go on, more businesses are expected to kick-start their businesses through industrial parks because of the long-term satisfaction and growth it can provide.
