20th Century Industrial Progress in Spain

The Progress of Industry in Spain

Energy Changes and Technological Advances: In the first third of the 20th century, new sources of energy emerged, primarily oil and electricity. The advancement of electricity occurred in two phases: from 1880-1914, its use was restricted to public lighting, and between 1914-1930, it saw widespread use across industries. This period also witnessed a new revolution in transportation, particularly with the rise of the automobile.

Advancements in information transmission were also significant. The expansion of the telegraph began around 1860, followed by the telephone and radio broadcasts.

Industrial Growth and Transformation

Major transformations occurred with the appearance of new industries and the consolidation of existing ones. Traditional sectors, such as the Catalan textile industry, continued to expand but began to lose prominence. The food industries also declined, despite the consolidation of the fish canning industry. The chemical industry grew through the manufacture of products such as fertilizers. The steel industry expanded, leading to the creation of Altos Hornos de Vizcaya in 1902, a major steel firm alongside Nueva Montaña SA.

New industries excelled, particularly in electricity. The first electric company was Compañía Sevillana de Electricidad, followed by hydroelectric companies. Growth in the metallurgical industry was reflected in the production of cars and electrical appliances. The Hispano-Suiza company pioneered the automobile industry. The construction industry experienced a significant boost, especially in the consolidation of the cement industry.

Industrialization in Madrid and Other Regions

Industrialization spread primarily through Madrid, making it the third most important industrial region due to demographic growth that boosted demand for consumer goods and incentivized industrial growth. Other important areas of industrial progress included Galicia, where the canning industry stood out, as well as Zaragoza and Seville. In the Cantabrian region, the steel industry and metallurgical sectors were prominent. The furniture and toy industries in Alicante and Valencia also experienced industrial diffusion. However, this industrial spread across Spanish territory did not eliminate the imbalance in income distribution.

State Interventionism in the Economy

During the first third of the 20th century, the Spanish economy was characterized by restricted competition between firms and constant state intervention. Companies established agreements to fix prices and share markets through quotas. Consequently, selling prices in Spain were higher than in other countries. State interventionism manifested in two ways: aid and rising protectionist measures. Protectionism had negative effects on the Spanish economy, leading to low productivity and uncompetitiveness. However, it also had positive effects, such as fostering technological advancement.

Promotion of Infrastructure

Improving roads absorbed most of the state's investments, as did telegraph and railway networks. The telephony network grew and improved. State investments were made to increase public spending.