Spanish Industrial History and Regional Development

Early Spanish Industrialization

The exploitation and trade of iron and coal from Biscay and Asturias eventually led to the development of the steel and mechanical industries. Concurrently, the cotton textile industry developed in Barcelona, alongside the wool industry in Sabadell, Terrassa, and Béjar.

Autarky and INI (1939-1959)

This period saw the imposition of a policy of autarky, which emphasized self-sufficiency and minimizing trade with foreign countries. The Instituto Nacional de Industria (INI) was created during this time.

Key Export Sectors During Autarky:

• Consumer Goods: Footwear, leather, cork, furniture, paper, and publishing.
• Basic Industries: Rubber, machinery, mining, and shipbuilding.

Regional Industry in 1975

Different regions developed distinct industrial strengths:

Catalonia's Textile and Machinery Sector

Characterized by an entrepreneurial middle class that had accumulated capital through trade, agriculture, and manufacturing. Production focused on yarn, wool, and cotton to supply the Spanish market. Later additions included the manufacturing of textile machinery, chemicals, automobiles, and railway equipment.

Basque Country's Iron and Steel Industry

Focused on the extraction of iron ore, exported primarily to England. English ships returned transporting coke coal. This facilitated the development of a strong steel industry.

Asturias: Mining and Steel Production

Activity centered on mining due to mineral deposits and proximity to ports allowing export. A steel industry developed in Asturias, partly funded by French capital.

Madrid: Capital Influence and Urban Market

Industrial location was linked to its status as the state capital, proximity to decision-making centers, and the existence of a major urban market.

Economic Crisis and Tech Revolution (1975-1985)

Causes of the 1970s-80s Crisis

• Workers demanded better salaries, working hours, and decent permanent contracts. Increased wages led to decreased profits.
• Energy Crisis: OPEC agreed to reduce production and increase the price of oil.
• Competition from Newly Industrialized Countries (NICs).

Technological Revolution in Production

New systems allowed businesses to:

• Automate production processes.
• Control company evolution from anywhere globally.
• Instantly detect the evolution of demand.
• Facilitate the fragmentation of production processes and their geographic dispersion.
• Facilitate real-time communication between stores and company headquarters.

Spain's Contemporary Industrial Axes

The industrial sector is geographically concentrated:

Mediterranean Axis

Joins industrial activities in Catalonia, Valencia, and Murcia. Connects through France to northern Italy.

Ebro Valley Axis

Connects the Basque area with Catalonia through industrial centers like Logroño and Zaragoza. Tends to link with the Madrid industrial area.

Madrid Industrial Area

Highly developed, attracting high-tech sectors (e.g., aeronautics), capital, and foreign investors.

Andalusian Industrial Zones

Companies tend to concentrate in Western Andalusia (Seville, Cádiz, Huelva).

Cantabrian and Galician Axis

Accounts for around 10% of industrial activity, based primarily on the steel industry.

Central Zone Industrialization

Includes recently industrialized areas like Valladolid and Burgos.

Island Industries

Limited industrialization, with notable activity in extractive industries, petroleum refining, energy, and water management.