There needs to be "re-specialisation" of Balearic industry. | MDB

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Since the start of the century, Balearic industry has grown by only 4.7% while the economy as a whole has grown by more than eighteen per cent.

Antoni Riera, director of the Fundació Impulsa Balear public-private initiative to boost competitiveness, has presented a report on industry's contribution to Balearic competitiveness. He concludes that there has been an erosion of industrial activity over the past twenty years and that the "intense tertiarisation" of the economy is the cause. In other words, services - most obviously tourism - dominate the economic fabric of the islands.

There has also been a 27% decline in manufacturing since 2000. This contrasts with a 6.4% increase in Spain as a whole and a 22% increase in the European Union.

In view of this situation, Riera says that there is an urgent need for industrial "re-specialisation". Measures are required that foster efficiency and innovation, as it is not enough to simply have more industry; it needs to be a "different industry". To achieve this he has set out ten approaches. These include an expansion of the islands' export base, ensuring reinvestment capacity and support for industry business development.