Catalyst For Economic Development: Modern Industrial Parks
You might be aware of the presence of industrial parks in your area or in other locations across the country, but you may not know what they are for. Industrial parks are some of the biggest catalysts for economic development, especially in developing countries like the Philippines. They often provide facilities and infrastructure that make it possible to produce and process various products across different industries.
An industrial park is an essential part in boosting economic development, and in this article, you can learn more about how modern industrial parks help shape our economy.
What is an industrial park?
An industrial park is also called an industrial estate or zone. It is an area that is planned and zoned of specifically for industrial development and heavy industry. They contain infrastructure for production, manufacturing, treating, or packing goods and products on a large scale.
Industrial parks often host manufacturing facilities for various companies or industries in one vast real estate complex. Specialized infrastructure is therefore located in one localized area, making it easier for business investors and companies to produce and store their wares in a large-scale capacity. Other terminologies associated with these spaces are free-trade zones (FTZs), special economic zones (SEZs), or export processing zones (EPZs).
As a whole, industrial parks are designed to attract investments and foster economic development. Typically, these zones are given special exemptions so that companies and industries can more easily go about their different processing and manufacturing processes.
Where are industrial parks located?
Industrial parks are often built or developed outside or on the outskirts of a city’s main residential area. These facilities are usually closed off to the general public, and are set far back from the main roads. Workers in these parks will often receive shuttle services within the compound to take them from the entrance to the many buildings on site.
The reason for this choice of location is to mitigate the environmental impact created by the infrastuctures in these industrial areas. Often, heavy industry requires more electricity and water, and having a specific zone for industries allows cities to develop specilized power grids and water supply to meet the demands of these infrastructure and manufacturing plants.
Waste is also typically a by-product of heavy industries, and to prevent contaminating the water meant for residential use, they require a separate treatment facility. Noise can also be an issue, which is why industrial parks are built away from residential areas.
How does industrialization relate to economic development?
As businesses and industries grow, so does the demand for specialized infrastructure and manufacturing spaces. An industrial park can help with that demand by providing integrated infrastructure all in one place. Economic development is driven by improving the capacity for industry, which makes investing in industrial parks a beneficial move for local and foreign companies.
Here are other reasons why industrial parks are important for economic development:
Promotes Entrepreneurship and Investment
Industrialization is key to scaling a business and establishing a supply chain that can serve consumers worldwide. And with the infrastructure available at industrial parks, it can attract entrepreneurs and companies of deficient scales and sizes to invest in the amenities available in these parks.
Pick Your Real Estate Lot
At an industrial park, you will find lots of varying sizes. Depending on the industry you are in, you may have different space requirements. In an industry such as construction, manufacturing materials often require more space that an smaller-scale industry such as a fabric processing plant. By securing your spot in the industrial park, you can build a space that suits your business requirements.
Regional Economic Development
The presence of modern industrial parks will boost economic development in the region and in adjacent neighborhoods. These facilities offer a large number of employment opportunities, and can positively affect development in the area. As businesses and infrastructures within the parks require well-maintained roads, high-speed communication lines, and a steady supply of electricity, local governments are given an incentive to develop the area, benefiting not only the businesses, but also the civilians who live or work in the adjoining areas.
By having well-mainteined and updated infrastructure, it can attract even more investors and companies create business opportunities in the area.
Boosting SME Productivity
Small and Medium Enterprises (SMEs) may not have the capacity to invest in their own manufacturing infrastructure, which can make scaling their business much more challenging. By using the facilities and working with companies with access to industrial parks and infrastructure, SMEs can become more productive and make the leap that will take their business to new heights.
How can businesses benefit from modern industrial parks?
An industrial park has long been established as a booster for economic development. But for companies, businesses, and investors, using industrial parks can also come with benefits for their business model.
Smart Long-Term Investment
When business owners want to grow their companies, scaling production is one of the biggest hurdles as machines and parts for increased manufacturing can add up costs. But when they make use of the facilities available at industrial parks, they can reap the benefits of having access to a special economic zone that has mutually beneficial businesses and industries. Moving production and processing to an industrial zone complements scaling targets and is the best way for small and medium manufacturers to increase productivity.
Builds Relationshhips With Foreign Investors
Local businesses are not the only entities making use of industrial parks. These industry zones are also a haven for international companies and investors. Bulding business relationships internationally can be a big step for local companies when it comes to elevating their status and business. It can help them reach a global audience.
But aside from that, the workforce available in industrial parks gives businesses a competitive edge when it comes to production and fufilment of their part of the supply chain. For foreign companies working with Philippine industries, this is a huge factor in creating a beneficial partnership for all parties involved. More international investors will be willing to work with local companies when they know that they can fulfil demands and maintain the supply chain.
Mitigate Environmental Impacts
Manufacturing and processing materials can use up natural resources as well as produce waste as a by-product. When industrial plants are located in many separate areas, the risk for contaminating the surrounding environment increases. But when industries are contained within modern industrial parks, it makes it easier for several companies to mitigate their environmental impacts.
Modern industrial parks are designed with sustainability and eco-consicousness in mind. With additional planning, these parks can help provide a safe and efficient way to treating waste products to decrease their harmful effects on the environment. Being more energy efficient is also a key design aspect in industrial parks. When several companies use shared resources and services in the industrial park, it is easier to recycle or conserve resources.
An industrial park is an essential part of the growing Philippine economic development. The benefits of industrial parks are felt by the govenrment, the businesses, and the people employed in these industrial zones. With the increased drive towards industrialization, industrial parks make it easier for our economy to keep up with global business trends and demands. As a developing country, the Philippines is growing as a popular choice for local and international investors when they choose their sites for manufacturing and processing. this boeds well for the country and for the future economic development it is sure to bring. Through this helpful article, you can now understand why economic development and industrial zones go hand in hand.
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