Spain's Industrial Evolution and the 1973 Economic Crisis

The Secondary Sector and Industrial Spaces in Spain

The secondary sector in Spain, including construction, occupies 29% of the workforce and contributes 28% to the total GDP.

The 1973 Energy Crisis and Economic Impact

The energy crisis of 1973, which triggered a global economic crisis, was met in Spain with a delay for political reasons: the Francoist regime masked the economic crisis in a desperate attempt to avoid a political crisis for the regime. Rising energy prices and raw material costs joined the onset of competition from Newly Industrialized Countries (NICs). To try to recover competitiveness, discussions began regarding the wage question in Spain.

Consequences of the 1973 Industrial Crisis

The consequences of the crisis that began in 1973 were:

• A relative decline of the industry: The contribution of industrial activities to GDP was 40% in 1975.
• Soaring unemployment: In 1970, with millions of Spanish emigrants in Europe, unemployment was 1.1%. By 1985, including returning emigrants, it amounted to 22%.

In this state of affairs, industrial restructuring was necessary. However, given the coincidence of the 1973 economic crisis with the political change in Spain, it was not easy to simultaneously address both fronts.

Industrial Restructuring and Sector Reconversion

Domestic iron intake was reduced for three reasons: the fall of demand, competition from new materials, and steel from other low-cost countries. Low demand also resulted from the crisis in shipbuilding, automotive, property, and consumption.

Specific Sector Challenges

• Equipment and Copper: Conversion was not due to overproduction, as Spain continued and remains deficient in this area.
• Textiles and Leather: There was a need to replant the textile and leather sectors. In the case of textiles, the crisis was due to lower private consumption and very strong international competition in both the textile subsector and garment manufacturing (confección). Something similar happened in the leather subsector.
• Energy and Chemicals: Reconversion was also due to energy problems. The most affected sectors were the automotive and chemical sectors. In the chemical industry, oil serves as both a feedstock and an energy source.

Impact of Industrial Decentralization

The attempt to save energy led to significant reconversion, the loss of industrial jobs, and new industrial decentralization. The impact on traditional areas was uneven, affecting both the converted sectors and the regions where they were located.