Spain’s Industrial Transformation: 1985-Present
Spanish Industry Today
Industrial Recovery 1985-2007
Spain’s integration into the European Community and the progressive adoption of European changes of the 3rd Industrial Revolution.
EU Incorporation: Challenges:
- Integration into a highly competitive market.
- Adoption of EU industry standards.
Advantages:
- Increased market for Spanish products.
- Elimination of tariffs.
- Access to innovations and best practices.
- Entry of foreign capital.
The Changes of the Third Industrial Revolution
Innovation: Applying scientific and technological advances to obtain new products and improve production, organization, and marketing processes.
Technological Revolution: Centered on microelectronics.
Scientific Revolution: Basic and applied knowledge are essential.
Changes in Industrial Production
The technological revolution promoted new, high-tech industries:
- Telematics
- Automation
- Precision instruments
- New materials
- Modern transport
- Biotechnology
- Lasers
- Renewable energies
Changes in Industrial Structure:
A) Changes in the production system:
- Decentralization: Dividing the production process into phases and locating each in separate, favorable facilities. This is facilitated by telematic networks, new technologies, and automation, leading to multi-plant companies. These companies split their activity into specialized tasks carried out in separate establishments, outsourcing tasks to other companies or forming networks of SMEs.
- Manufacturing flexibility: Manufacturing small series of different products at profitable prices.
B) Changes in the size of firms:
Changes in the production system support the growth of SMEs and a reduction in the size of factories.
C) Changes in industrial employment:
- Increase in tertiary qualification and manufacturing employment.
- Reduction of employment in productive tasks performed by manual workers (“blue-collar workers”) as these are now executed by machines.
- Regularization of the labor market: Reduction in the number of workers in the primary market and an increase in the secondary market.
Changes in industrial location: Relocation of businesses looking to cut costs in places with more advantages, and concentration of high-tech industries, offices, and services.
Manifestations of recovery include growth in the industrial production index and industrial occupation.
Industrial Production Now
Mature Industries:
These branches are affected by decreased competitiveness, reduced demand, or the need to conduct restructuring processes. These include:
A) Metallurgy and metal processing:
- The steel industry: Obtaining steel from iron ore in blast furnaces (only Asturias remains after being privatized and modernized).
- The converted metal industry (metal products and machinery manufacturing in Barcelona, Madrid, and the Basque Country).
B) The manufacture of white goods (home appliances).
C) Shipbuilding.
D) Manufacturing of textiles and clothing.
Dynamic Industrial Sectors:
These industries are characterized by high productivity, specialization, and strong demand:
A) The automobile sector.
B) The chemical sector:
- Basic petrochemicals.
- Chemical transformation.
C) The food industry.