The Urgency of Revitalising Spanish Industry: A Pillar for the Future

Andres Muñoz
Javier Llompart

Authors:
– Andrés Muñoz Machado, Secretary
– Javier Llompart, Vice-President
Industrialisation Committee of the Spanish Engineering Institute.

Historical and Current Context

Since the First Industrial Revolution, industry has been a backbone of the world economy. In Spain, the evolution of industry has been crucial for economic and social development. However, in recent decades, the share of the industrial sector in Spanish GDP has declined significantly. According to recent data, the manufacturing sector, which constitutes the core of the industrial sector, represents approximately 13% of GDP, far below the 20% target proposed by the European Union to revitalise the economy and ensure sustainable growth.

The Work of the Spanish Engineering Institute

The Spanish Engineering Institute has been playing a fundamental role in the elaboration and negotiation of a State Pact for Industry, working in close collaboration with political parties, business organisations and trade unions. This effort has culminated in the ‘Sectoral Proposal for an Industrial Strategy’, which establishes strategic lines of action, objectives and specific actions to revitalise Spanish industry. This proposal is aligned with the European Industrial Strategy and the Draft New Industry Law.

Importance of Technological Innovation

Technological innovation is a crucial driver for industrial progress. In the era of Revolution 4.0, digitalisation and new technologies such as artificial intelligence, advanced robotics, additive manufacturing and the Internet of Things (IoT) are redefining the way industry is produced and managed. The adoption of these technologies not only improves efficiency and productivity, but also creates new business and employment opportunities.

Revolution 4.0: Digital Transformation

Digitalisation or Revolution 4.0 involves the widespread implementation of technological advances across the board. These technologies are inducing profound changes in production devices, production organisation, business services and business models. Key technologies include:
– Internet of Things (IoT): Enables the interconnection of devices and systems, improving efficiency and resource management.
– Cloud Computing: Facilitates access to and storage of large volumes of data, driving innovation and operational flexibility.
– Advanced Robotics: Increases precision and speed in manufacturing processes, reducing costs and improving quality.
– Additive Manufacturing (3D Printing): Revolutionises production by enabling the creation of complex parts with less material waste.
– Big Data and Analytics: Provides valuable insights for strategic and operational decision making.

Industry and Quality Employment

Industry is an important driver of the economy, inducing the creation of quality jobs. Jobs in the industrial sector tend to be more stable and better paid than in other sectors, due to the high skills required and the capacity to generate indirect employment. According to various studies, each job in industry can generate between 0.5 and 4 indirect and induced jobs.Training and EducationThe industry requires a highly skilled workforce, which boosts the educational level of the population.Vocational training and higher education become crucial, fostering a culture of continuous learning and adaptability.Dual training, combining education in institutional settings with internships in companies, is one of the best practices to prepare the workers of the future.

Innovation and Competitiveness

Innovation is at the heart of industrial progress. The European Commission recommends that countries spend at least 3% of GDP on Research and Development (R&D).The countries that invest the most in R&D, such as South Korea, Japan, the United States and Germany, are also the most prosperous. Spanish industry must increase its investment in R&D to be globally competitive and to lead in innovation.

Industrial Strategy 2030

The Spanish High Level Industry Forum, in collaboration with the Spanish Engineering Institute, has drawn up an industrial strategy with a 2030 horizon. This strategy has three main objectives:
1. Reindustrialisation of the Economy: Increase the share of the industrial sector in GDP and employment.
2. Digital Transformation of the Industrial Fabric: Adapting small and medium-sized enterprises (SMEs) to the new technological and competitive context.
3. Ecological Transition and Circular Economy: Taking advantage of the opportunities of the circular economy and mitigating the environmental impacts of industry.

Green Transition and Circular Economy

Sustainability has become an imperative for modern industry. Transitioning to a circular economy, where resources are reused and recycled rather than discarded, is crucial to reduce environmental impacts and improve resource efficiency. Key actions include:
– Eco-Design: Create products with an extended life cycle, which are easy to repair, reuse and recycle.
– Waste Management: Implement practices to reduce, reuse and recycle industrial waste.
– Energy Efficiency: Adopt technologies and processes that reduce energy consumption and carbon emissions.
– Renewable Energy: Integrate renewable energy sources into production processes to minimise dependence on fossil fuels.

Key Actions for Reindustrialisation

To achieve these objectives, a set of strategic actions have been identified:
– Fostering Innovation: Increase investment in R&D and promote collaboration between universities, research centres and companies.
– Improving Competitiveness: Simplifying bureaucracy and improving access to finance for SMEs.
– Education and Training: Enhance vocational training and adapt curricula to the needs of industry.
– Supporting the Digital and Green Transition: Implementing digital technologies and promoting sustainable practices in industrial production.

Coordination and Governance

Effective coordination between the different administrations and alignment with EU policies is essential. The Spanish Institute of Engineers proposed and supported the creation of a Secretary of State for Industry with sufficient powers and resources to develop and execute this strategy. Furthermore, it is crucial to support the internationalisation of Spanish industry, inserting it into global value chains.

Conclusions

The revitalisation of Spanish industry is an urgent necessity to ensure economic growth and social stability. The adoption of advanced technologies, innovation and the transition towards a circular economy are key to this process. Collaboration between government, business and educational institutions is essential to create an enabling environment for industrial development. The Industrial Strategy 2030, developed by the Spanish High Level Industry Forum, provides a clear and ambitious roadmap to achieve these goals. Effective implementation of this strategy will be crucial to ensure a prosperous and sustainable future for Spain.