Geographic concentration of industries is the regional- ized distribution of some industries in certain areas, which focuses on the ratio of a certain industry to the whole industries (He and Liu, 2006). In this paper we explore the improved M function of geographic concentration that adds the parameter of the number of firms according to the definition of geographic concentration of industries. The spatial distribution of the main manufacturing industries of Lanzhou urban area is evaluated based on it. The results of the evaluation imply that the spatial distribution of the main manufacturing industries is more concentrated than that of others in Lanzhou and it can absorb lots of labor forces. But the incidence, competition ability and density of the distribution of enterprises are different for each single sector, and enterprises with different production features are located closely. And three main problems are discovered. Finally, three countermeasures are put forward: locating the industrial enterprises in urban areas in a proper way through planning and policies; adjusting the industrial structure of the inner city; strengthening the local rearrangement of the existing industrial concentration areas. Geographic concentration of industries is the regional-ized distribution of some industries in certain areas, which focuses on the ratio of a certain industry to the whole industries (He and Liu, 2006). In this paper we explore the improved M function of geographic concentration that adds the parameter of the number of firms according to the definition of geographic concentration of industries. The spatial distribution of the main manufacturing industries of Lanzhou urban area is evaluated based on it. The results of the evaluation imply that the spatial distribution of the main manufacturing industries is more concentrated than that of others in Lanzhou and it can absorb lots of labor forces. But the incidence, competition ability and density of the distribution of enterprises are different for each single sector, and enterprises with different production features are located closely. And three main problems are discovered. Finally, three countermeasures are put forward: locating the industrial enterprises in urban areas in a proper way through planning and policies; adjusting the industrial structure of the inner city; strengthening the local rearrangement of the existing industrial concentration areas.