Transformation of Industrial Production: Trends and Challenges
Transformation of Industrial Production
Major Changes
Today’s industry has undergone significant changes in production. These include:
- Telematics: Processing and presenting vast amounts of information quickly and precisely.
- Automation and precision instruments.
- New materials, biotechnology, lasers, and renewable energy.
These advancements have led to changes in firm size, industrial employment, and an increased demand for qualified technical professionals.
Classical vs. Current Industrial Location Factors
Classical Factors
- Proximity to raw materials and energy sources.
- Broad consumer markets ensuring profitability.
- Abundant and cheap labor.
- Efficient transport systems.
- Strong support sectors (services, infrastructure).
- Favorable industrial policies.
Current Trends
- Reduced importance of proximity to natural resources due to cheaper transport of raw materials and electricity.
- Continued relevance of proximity to markets, efficient transportation, and skilled labor.
- Growing importance of territorial factors like convertible resources, skilled workforce, and innovative business environments.
These shifts have led to a distribution of industries to peripheral areas while maintaining the appeal of developed urban-industrial centers.
Distribution and Concentration Trends
Distribution to Peripheral Areas
Driven by factors such as:
- Challenges of large industrial concentrations (labor unrest, high labor costs, environmental degradation).
- Technological advancements enabling location flexibility.
- Endogenous development based on regional competitive advantages.
This trend primarily affects mature industries.
Concentration in Central Areas
Concentrated in sectors like new technologies, services, and infrastructure requiring advanced resources and high-level markets. Central locations also attract corporate headquarters and business management.
The expansion of ICT across society further fuels this concentration.
Internationalization
Facilitated by measures like promoting Spanish products, enhancing Spain’s image and quality, supporting SME exports, and establishing Spanish firms abroad.
Problems in Spanish Industry
- Inadequate Company Size: Predominance of small and medium-sized enterprises (SMEs), hindering competitiveness.
- Scarce Research: Low investment in R&D.
- Backward and Dependent Technology: Reliance on external technologies.
Current Industrial Areas in Spain
Spain exhibits territorial imbalances between industrialized and less-industrialized areas.
Developed Areas
Madrid and Barcelona metropolitan areas are major industrial centers.
Growing Hubs
- Metropolitan areas.
- Peripheral strips.
- Industrial development axes (e.g., Ebro Valley, Mediterranean coast).
- Rural areas.
Declining Areas
Characterized by declining mature industries and difficulties in re-industrialization due to an unskilled labor market. Consequences include de-industrialization, migration, and population decline. However, some areas, like the Basque Country, have shown successful revitalization.
Less-Industrialized Areas
Marked by isolated large industrial complexes and a predominance of small, traditional, dispersed industries.
Sectoral Policy
Current policy focuses on enhancing the competitiveness and internationalization of SMEs by addressing their size limitations, research investment, and technological capacity.
Key Measures
- Completing industrial conversion.
- Establishing industrial observatories.
- Supporting sectors exposed to foreign competition.
- Supporting SMEs and large companies.
- Promoting research, innovation, and technology to achieve EU convergence.
- Increasing R&D spending.
- Improving research through qualified staff, fostering university-industry research transfer, and supporting Technology Development Centers (CDTTs).