Industrial Activities and Spaces in Spain: An In-Depth Analysis
Industrial Activities and Spaces in Spain
1. Raw Materials and Energy Sources
Mineral Raw Materials: Raw materials are resources from which products are derived or semi-processed. They can be classified as organic (from agriculture, livestock, and forestry) or mineral (metallic, non-metallic, and industrial rocks). Spanish mining policy falls within the general guidelines of the European Union. Due to the competitiveness of foreign entities, many metallic mineral mines have closed. However, non-metallic mining and rock mining industries have grown dramatically.
Energy Sources: Currently, within the EU, Spain ranks fifth in energy and raw materials, behind Germany, France, Britain, and Italy. Spain exemplifies imbalance and energy dependence. The primary energy sources in Spain are petroleum, natural gas, nuclear power, coal, hydropower, and emerging renewables.
- A) Crude Oil: A mineral composed of a mixture of hydrocarbons, formed in sedimentary layers by the decomposition of marine plants and animals. Oil currently holds first place in energy consumption.
- B) Natural Gas: A mixture of gaseous hydrocarbons, associated or not with oil in underground reservoirs. Its advantages include high calorific value, lower prices, lower levels of contamination, and greater diversification in location, leading to less instability and cyclical price fluctuations. Consumption is expected to continue growing.
- C) Nuclear Energy: Obtained by the fission of uranium atoms. It is the most controversial energy source, with many supporters and detractors. It is used to generate electricity in power stations.
- D) Coal: The main energy source in the first and second industrial revolutions, replaced by oil in 1960. Coal is used as a fuel in general applications, such as coke for industry, domestic gas, and the extraction of chemical products. Most of the coal used in Spain is imported, as Spanish coal is less profitable and of lower quality.
- E) Electricity: Can be generated from hydropower, thermal sources, or renewable energy sources. The current trend is to build microelectronic plants. Electricity produced by thermal power plants is more regular and cheaper but has the disadvantages of contamination and reliance on non-renewable resources like gas, coal, and oil, or the issues associated with nuclear power plants. All power plants face storage problems, leading to surpluses at certain times and shortages at others.
- F) Renewable Energy Sources: Since 1975, renewable energy has been an option in Spain and worldwide. However, it has not fully taken hold, either due to a lack of technical progress to make it profitable and competitive or due to the interests of multinational oil companies hindering technological advancement. Notable renewable sources include biomass, tidal, solar, and wind energy.
2. The Industrialization Process in Spain
Until the Mid-Twentieth Century: The Failure of the Industrial Revolution
The industrial revolution began in Spain concurrently with the rest of Europe but progressed more slowly and irregularly. Only Catalonia, the Basque Country, and Madrid industrialized, while the rest of Spain remained agrarian. This delay placed Spain within the Mediterranean model, where agriculture is more backward due to climate and industrial property structure. Both exogenous and endogenous factors hindered industrial development in Spain. From 1855 to 1870, the first industrial revolution occurred. From 1870 to 1959, the second industrial revolution took place, during which the INI (National Institute of Industry) was created in an attempt to achieve self-sufficiency, and the economy was largely controlled. The result was widespread poverty. In the early 1950s, changing international circumstances and the Stabilization Plan marked the beginning of a new stage.
1959-1975: Consolidation Phase of the Industrial System
From the mid-twentieth century, with the Stabilization Plan (1959), the Spanish economic system opened to the outside world. Economic growth was driven by foreign capital inflow, tourism and emigrant income, and abundant cheap labor. In the 1960s and 1970s, development plans promoted economic growth and industrialization. Three plans were established:
- The first industrial development plan (1964-67) established industrial development zones in A Coruña, Seville, Valencia, Vigo, and Zaragoza, industrial promotion poles in Burgos and Huelva, and special plans for the Canary Islands and Campo de Gibraltar. Industrial production grew by nearly 6.5% annually.
- The second development plan (1968-71) created five new development areas, with annual production growing at 5.5%.
- The third development plan (1972-75) focused on industrial, agricultural, and tourism areas, achieving 7% annual growth.
1975-85: Crisis and Renewal in Spanish Industry
The energy crisis became an economic and industrial crisis, particularly affecting mature sectors. Inflation exceeded 20%. The crisis was addressed from 1983 through industrial restructuring plans, creating Urgent Reindustrialization Zones (ZUR). The 1973 crisis severely impacted Spain, whose development relied on exogenous factors. Migration was cut, tourism slowed, and many capitals were repatriated. The crisis affected the entire Spanish economy, especially industries like steel, textiles, and shipbuilding, which initially relied on state aid. The economic crisis was exacerbated by the political crisis of the Franco regime. In 1982, the PSOE won a sufficient majority.
1986-Present: Stage of Integration and Internationalization
In this stage, new international circumstances, such as globalization and integration into the EU, imposed a different kind of industry. The EU eliminated internal tariffs, provided massive aid to enterprises, and broke up monopolies. Globalization led to new foreign investment by multinationals, but also to industries migrating to countries with cheaper labor, a phenomenon known as offshoring.
3. Industries
Mature Industrial Sectors Undergoing Restructuring
These sectors have experienced recent changes that have placed them in a crisis situation, and they are in the process of conversion.
- A) Metallurgy and Metal Processing: The steel industry has undergone restructuring with mostly positive results.
- B) White Goods Manufacturing: Undergoing conversion, leading to the closure of many companies and relocation processes.
- C) Shipbuilding: Located in Galicia, Cantabria, the Basque Country, and Andalusia. Undergoing a difficult adjustment process to reduce capacity and specialize in other activities, such as repairs.
- D) Textiles, Leather, and Footwear: The textile industry has successfully restructured, relocating tasks with little added value and focusing on quality, design, and new technologies in domestic factories. It is concentrated mainly in Catalonia and Valencia.
Dynamic Industrial Sectors
These sectors have excellent future prospects due to secure, flexible, and sound structures, high productivity, and specialization. They are characterized by the presence of foreign capital.
- The automotive sector is in an excellent position after restructuring with official support. Capital is foreign, and even routine tasks are being relocated. It has bright prospects and is an export sector, ranking third in the EU after Germany and France.
- The chemical sector is a cornerstone of Spanish industry, divided into petrochemicals and chemical processing.
- The food industry has a dual business structure, with small, scattered companies and large multinationals.
- Construction, along with tourism, drives much of the current growth. It is sensitive to short-term conditions, with a lot of informal economy, job insecurity, and many accidents.
Cutting-Edge Industrial Sectors
In Spain, these sectors (microelectronics, telematics, automation, biotechnology) have been implemented with delay due to dependence on foreign technology and research, diseconomies of scale due to the small size of enterprises, and limited labor adaptation.
4. Industrial Regions
Developed Industrial Areas
These are the central areas of metropolitan regions that have consolidated as the main sites of Spanish industry. These areas have encouraged the trend towards outsourcing, reflected in the importance of industrial, business, or technology parks, sometimes merging with the quaternary sector.
Industrial Axes and Expansion Areas
- A) Metropolitan Crowns
- B) Incumbent Areas: Small, low-capitalization companies with expertise and technology.
- C) Peri-urban Fringes
- D) Industrial Development Axes: Small companies with low investment and technology, exploiting local potential.
Axes and Industrial Areas in Decline
These are areas specialized in mature industrial sectors in crisis, dominated by large enterprises and factories. The workforce is poorly qualified, the environment has deteriorated, and the EU has exacerbated the situation.
Industrial Enclaves
These are areas where industry is located but surrounded by industrial deserts, such as Valladolid, Burgos, Seville, Cádiz, and Huelva.
Areas with Limited Industrialization
These include Castilla-La Mancha, Extremadura, the Balearic Islands, the Canary Islands, and eastern Andalusia. Castilla-La Mancha is beginning to emerge from this group due to the dissemination of industry from Madrid.