Industrial Decline and Transformation in Spain’s Regions
Industrial Decline in Developed Areas
Asturias
Industrialization in Asturias began in the late 19th century, focusing on coal and metallurgy. In 2000, Asturias ranked second in Spain for metal processing and smelting, surpassing even the food sub-sector. The industry was dominated by large state-owned companies like HUNOSA and ENSIDESA, primarily located in the central area around Oviedo, Gijón, Avilés, Mieres, and Langreo. This central area, with its modern transport network, including the ports of Musel and the estuary of Avilés, and major highways, attracted chemical and metalworking industries, further reinforcing the industrial concentration.
Cantabria
Cantabria’s industrial model is vulnerable to external shocks due to its dependence on foreign capital. Many business decisions are made outside the region, leading to industrial relocation. The metal sector is dominant, with factories concentrated in three areas: the Bay of Santander (metal, chemistry, and food), the N-611 corridor (Torrelavega’s chemistry, and the metal industries of Reinosa and Buelna valley), and the eastern coast (Santoña, Laredo, Castro-Urdiales), specializing in canned fish.
Induced Processing and Smaller Areas
The industrial landscape in other Spanish regions is diverse. Castilla y León and Galicia have industrial employment similar to the national average, while other regions fall below. Castilla y León and Galicia also contribute more to total industrial production, while the contribution is average in Andalusia and very low in the islands. This reflects the weight of agriculture in Extremadura and Andalusia, and the importance of tourism in the Balearic and Canary Islands, and Andalusia.
Castilla y León
Castilla y León’s industry is highly fragmented, with numerous small, family-owned businesses in traditional, low-tech sub-sectors. Larger, more modern sub-sectors include automotive, chemicals, and rubber processing. The region is the second-largest energy producer, primarily from coal-fired power plants. Key sub-sectors by production value include transport equipment, food, rubber, and chemicals. Of these, only the automotive industry has generated significant spillover effects, boosting rubber and other auxiliary industries. The region’s focus on intermediate demand products makes it less vulnerable to economic crises and offers growth potential. Industrial activity is concentrated in Valladolid (automotive and related industries) and Burgos (diversified industry with local capital), followed by Ponferrada (coal and thermal power), León, Aranda de Duero, Salamanca, and Miranda de Ebro.
Galicia
Galicia’s development plans under Franco resulted in industrial estates that coexisted with, but didn’t fully integrate, traditional industries like dairy and canned fish. Large public and transnational companies later entered sectors like automotive, shipbuilding, dairy, and aluminum. More recently, there’s been a push for endogenous industry using local capital and resources, contributing to the development of a traditionally primary-based economy. Galicia is the third-largest energy producer, using thermal (coal) and hydroelectric sources. While industry is mainly located along the Atlantic corridor, particularly around Pontevedra, Vigo, A Coruña, and Ferrol, there’s increasing decentralization towards rural areas, driven by endogenous potential.
Castilla-La Mancha
Industry in Castilla-La Mancha has historically played a minor role. Growth in the 1990s was uneven, with Toledo and Guadalajara leading, followed by Albacete and Ciudad Real, and lastly Cuenca. This growth is attributed to the “border effect” – the relocation of Madrid-based businesses to neighboring areas, particularly Toledo and Guadalajara, to take advantage of lower costs. Food industries lead, followed by petrochemicals and building materials. Energy production, including nuclear power plants in Ciudad Real and Guadalajara, is also significant. However, employment is concentrated in food, wood-furniture, textile-clothing-footwear, and leather, indicating a focus on labor-intensive, low-productivity sectors vulnerable to crises. Small businesses are predominant.
Andalusia
Andalusia was a major industrial region in the late 19th century, but its industrial base has since declined. The importance of the primary sector explains the dominance of the food industry, followed by petrochemicals. Other key sub-sectors include metal production and smelting, building materials, energy, transport equipment, and machinery. Late 20th-century crises severely impacted mining, shipbuilding, transport vehicles, and textiles. Industrial weakness and its geographical concentration hinder the region’s economic integration. Seville and its metropolitan area account for 25% of the industry, followed by the Bay of Cadiz and Jerez (15%), specializing in transport and food, and isolated centers in Jaén.
Extremadura
Extremadura’s economy has traditionally been agrarian, reinforced during the development era when resources were directed towards industrializing other regions. An exception was energy production, initially hydroelectric and later nuclear (Almaraz plant), due to lower social opposition. The food industry dominates. Industrial activity concentrates along the Guadiana River in Badajoz, Mérida, and Don Benito, with a secondary axis along the N-630 (Silver Route), including Cáceres, Plasencia, and Zafra.
Balearic Islands
Small businesses producing consumer goods related to traditional activities like footwear, jewelry, and furniture dominate the Balearic Islands. Metal, energy, and construction auxiliaries are also present. Mallorca accounts for over 70% of industrial businesses and employment, while Menorca has jewelry manufacturing concentrated in Mahon and Ciutadella.
Canary Islands
Industry in the Canary Islands is subsidiary to tourism and construction. Only petrochemicals and food have significant national presence. Investment and employment concentrate on Tenerife and Gran Canaria, with Tenerife slightly ahead.