1.2. Access to Raw Material

Raw material used by industries should be cheap and easy to transport. Raw materials are the basic requirements for manufacturing industry. Some raw materials lose weight during processing but others do not. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material such as steel, sugar, and cement industries. Perishability is a vital factor for the industry to be located closer to the source of the raw material. Agro-processing and dairy products are processed close to the sources of farm produce or milk supply respectively.

Many industries do not require much of raw materials and these can be located anywhere independent of raw material sources such as garment and electronic industries. There are some industries which are not wedded to any particular raw material. Such industries are known as foot-loose industries.

With the expansion and development of means of transportation the role of raw materials in location of industries has almost lost its significance. The establishment of iron and steel industry in Japan and cotton textile industry in Liverpool prove the fact that the multi-nationals and countries with sufficient capital can manipulate the means of transportation in their favour and obtain raw materials.