Going the Extra Kilometer

While most people picture bull fights and flamenco dancers when they think of Spain, the country is making waves in the world marketplace. Advancements have been made in a wide array of industrial sectors.

Thanks to ICEX (the Spanish Institute for Foreign Trade), OEM Off-Highway was able to participate in a week long trade mission to Spain to experience and witness first-hand this dynamic Mediterranean country.

ICEX is an agency that works with Spanish companies to promote their exports and facilitate international expansion. The event, America in Spain 2007, played host to over 90 different companies from the United States, encompassing 16 different industrial and technology sectors. ANMOPYC, the Spanish Manufacturers Association of Construction and Mining Equipment, made sure that each Spanish company we were introduced to was specifically geared towards the off-highway industry.

During the event, participants were given the opportunity to delve into the country's developing modern economy, as well as experience its exquisitely maintained and faithfully cherished cultural heritage. The trade mission had only three objectives during our stay in Spain: Introduce us to Spain's state-of-the-art industry and technology, explore prospects for new business relationships in Spain, and experience the warmth and hospitality of the people of Spain.

A keystone to international business

Spain has some special qualities that make it singularly qualified as an ideal international business community of the 21st century. Linguistically, historically and culturally, Spain can affiliate with over 560 million consumers in Central and South America as well as in most of the Caribbean. Geographically, Spain's close proximity to North Africa and the Middle Eastern markets create an impressive 264 million more consumers. A member of the European Union (EU), Spain has direct access and connections to the entire union, equaling around 406 million people. Of course, Spain itself contains an additional 44 million people creating a total potential market size of 1.2 billion consumers. Spain's ample coastline allows it to harbor some of the best sea communications available, with 53 international ports on the Atlantic and Mediterranean coasts allowing networking between the Americas, Europe and Africa with ease.

However, Spain's international presence is an infant at best when compared to the time other countries have spent exchanging goods. After World War II Spain was politically and economically isolated while under the dictatorship of Francisco Franco. Upon his death in 1975, his heir, Prince Juan Carlos, assumed the position of king and head of state, approving the Spanish Constitution of 1978 and establishing democracy. In 1986, Spain joined the EU, thus only giving Spain, at most, 30 years of international presence in the modern global marketplace.

Regardless, the economy has been growing at an alarming rate (more than twice as fast as the European average for ten years; 3.4% in 2005). Currently the eighth largest economy and the fourth largest investor in the world, Spain continues to swell as a full grown economic powerhouse. In the last 10 years alone, over 7 million new jobs have been created making Spain the OECD (Organization for Economic Co-operation and Development) country with the fastest rate of job creations. Close to two out of every three jobs created in the EU during 2005 were in Spain, according to Interés Invest in Spain, the leading government organization that supports foreign enterprises seeking to set up or expand their business in Spain and foreign investment.

Spain is a leader in innovation and industrial technology, providing solutions in industries such as biotechnology, machinery and industrial technology, renewable energy and water treatment. According to Interés and Ernst & Young, "Spain's geography and climate make it the perfect place for the development of some of the most important sustainable, renewable energy sources in the market. For example, Spain is the most attractive country in the world for the wind-generated electrical power industry." A study conducted by Ernst & Young in 2006 ranked Spain second among the top 10 countries investing in renewable energy.