Raw-material-oriented

Describing a business, industry, or economy that primarily focuses on the extraction, processing, and utilization of raw materials as the foundation of its operations. It signifies a significant reliance on natural resources like minerals, timber, agricultural products, and other unprocessed or minimally processed substances. A raw-material-oriented approach typically involves locating manufacturing facilities near sources of raw materials to minimize transportation costs and ensure consistent access. This orientation can shape supply chains, investment strategies, and environmental practices within the sector. The term underscores the central role of natural resources in driving production and economic activity.

Raw-material-oriented meaning with examples

• The mining company's business model is demonstrably raw-material-oriented. Operations are centered around the extraction and export of ore. Its profits are almost exclusively tied to global demand for the base materials, influencing company expansion.
• Many forestry companies exhibit a raw-material-oriented structure. They're structured to harvest lumber and produce wood products. Mills are strategically located to reduce transit fees, minimizing transportation costs.
• Brazil's economy has historically been raw-material-oriented, dependent on the exports of iron ore, soy, and other agricultural resources. These raw materials are pivotal to their trade balance.
• The fertilizer industry remains strongly raw-material-oriented, with fertilizer plants situated to tap into abundant deposits of phosphates, nitrates, and potash to manufacture products.
• The region’s economic policy has led to a raw-material-oriented economy with a strong commitment to resource exploration. These policies seek to boost revenues through resource management and exportation.