For a labour-intensive manufacturing operation, which factor is most beneficial?

• A. Proximity to coal mines
• B. Located near the coast
• C. Near tourist attractions
• D. Good supply of skilled and relatively cheap labour

Answer: (D)

For a labour-intensive operation, the most beneficial factor is access to a large supply of workers who are skilled and affordable. When production relies heavily on people, labour costs and availability directly shape output, efficiency, and unit costs. Skilled workers can operate and maintain equipment effectively, produce consistent quality, and reduce downtime, while lower wage levels help keep total costs competitive. Other considerations like proximity to energy sources or transport hubs matter, but they don’t address the fundamental need to recruit and retain the right workforce at a reasonable cost. Being near tourist attractions isn’t relevant to manufacturing productivity either. So, having a good supply of skilled and relatively cheap labour is the key advantage.