The factors influencing agglomeration economy can be mainly classified into such two categories as transportation cost and production density. Production density is closely related to transportation cost, in all factors influencing agglomeration economy, transportation cost is not negligible. With further development of society and economy and with continuous progress in science and technology, although new technology is helpful to longdistance management and greatly decreases the importance of transportation cost in social production and life based on supply chain, the inner law of economic geography is impossible to be changed, the reason for this is that anyway space distance is possible to make exchange and interaction of knowledge, technology, products and people become convenient and effective. The experience at home and abroad has tested by this theory.