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Pros & cons of building in an industrial park

May 13, 2020

Industrial parks are zones designed for industrial development. They are generally located in the urban periphery, on land that is not intended for residential or commercial use. Industrial parks bring together a range of industrial facilities, including refineries, ports, warehouses, distribution centres, and factories.

If you have decided to build your own industrial space, don't forget to consider Quebec's industrial parks. Depending on your needs and budget, these places might just be right for your business. It is important, however, to think critically and make an informed decision, because industrial parks do have certain drawbacks. Some of these disadvantages could end up harming your business, which is why you should also consider other locations for your industrial build. 

Advantages of Industrial Parks

  • Proximity to labour: industrial parks are often built near a specialized labour force. They are generally located on the outskirts of urban centres, while also accessible by public transportation networks.
  • Existing infrastructure: with many industries gathered in a small area, park owners need to make sure they provide reliable access to all resources required for industrial operations. Water, gas, and electricity supply are usually not a problem, as infrastructure is designed to meet a high demand in both energy and resources. Sewage systems will also be suitable for treating high-volume wastewater.
  • Strategic location: many industrial parks are located between multiple major urban centres or near an international border. This strategic location could quickly increase your pool of potential consumers.
  • Access to transport networks: industrial parks often combine different options for shipping goods. Depending on the location, some industrial parks offer access to a deep-water port or an airport, while other complexes provide access to a railroad network or to several major highways instead.
  • Relationship with park owners: depending on park management, industries choosing to settle there may encounter a range of advantages. Many can offer lower prices than in urban areas. Others provide financing options for construction, like waiving municipal taxes for the first five years of operation on the land. Plus, most park owners offer specialized support to help companies secure building permits and industrial licences.

Disadvantages of Industrial Parks

  • Pollution island: industrial parks concentrate pollution produced by several industries in a specific area of the city. Although they are very often built away from residential and commercial areas, industrial parks are now rapidly approaching peripheral residential areas, due to urban expansion. Establishing an industrial zone can also lead to soil contamination.
  • Increased traffic: parks often result in increased traffic in the industrial area and on nearby highways. Plus, manufacturers often use heavy vehicles to transport their materials and goods, which will cause road networks to deteriorate more quickly.
  • Additional costs: depending on current management, additional costs may be charged every year to maintain the park's roads and infrastructure.