Canary Islands Metal Sector Forecasts Strong Employment Amid Economic Headwinds

Even with a tough economy, the metal industry in the Canary Islands expects to keep employment strong into early 2026. This is good news, especially considering the weak international market and the soaring costs of energy, transport, and raw materials. These findings come from the 15th Economic Sentiment Survey for the Metal Sector, put together by Confemetal, and they are particularly important for businesses in the Canary Islands.

The survey shows a positive outlook for jobs, with the employment indicator at 56.3 points at the end of 2025 and 54.5 points for the first three months of 2026. Since anything above 50 points suggests growth, these figures clearly show that metal companies are still focused on keeping and creating jobs. This commitment is vital for the economic and social stability of the Canary Islands.

Sales in the sector are also looking strong, with a turnover indicator of 65.9 points in late 2025 and an expected 61.4 points for early 2026. This healthy growth helps to offset some of the problems caused by international trade issues and rising running costs, which are particularly challenging for a remote region like the Canary Islands.

However, exports from the metal sector are still struggling due to the difficult global situation. The export index was 43.1 points at the end of 2025 and is predicted to be 46.1 points for the first quarter of 2026. These numbers are below 50, meaning exports are shrinking. This problem hits Canary Islands companies that trade internationally especially hard, as they also deal with extra costs and challenges because they are islands.

The Confemetal survey also confirms that rising costs are still the biggest worry for metal companies. Energy prices remain high, transport costs have jumped significantly, and raw material prices are at their highest point ever. This situation is squeezing profit margins and making it harder for the sector to invest.

Juan Antonio Jiménez Arranz, president of Femete, commented on the findings: "The data from this 15th Confemetal Survey shows a reality that metal companies in the Canary Islands know well. We are managing to keep jobs and business going in a very tough environment, with extra costs that are even worse for us because we are islands."

Jiménez Arranz added that "the strong job market in the industry is excellent news for the province of Santa Cruz de Tenerife. However, it also shows we need specific actions to make up for the costs of being an island and to boost our companies' competitiveness." He stressed that "training, professional skills, and support for investment are crucial for the metal sector to keep providing stable, quality jobs in the Canary Islands."

In summary, the 15th Confemetal Economic Sentiment Survey for the Metal Sector shows a delicate balance, but with clear signs that employment is holding strong. This is particularly important for the Canary Islands' economy as we head into 2026, he concluded.