Tenerife Boosts Industry with €20M Investment to Diversify Economy

Tenerife's local government, the Cabildo, is focusing on industry as a way to boost the economy and reduce reliance on tourism. They're investing €20 million in the sector over two years, tripling their previous contribution.

To further support this plan, the Cabildo is increasing a subsidy, initially launched in early 2025, by €200,000. This aims to strengthen the industrial sector, which directly employs 17,400 people and supports another 50,000 jobs indirectly. The total funding for this aid program is now €1.1 million, up from €900,000. The goal is to make local industries more competitive, modernize their facilities, and promote sustainable practices.

The industry is growing rapidly, with more workers and companies joining the sector. There are now over 1,300 industrial businesses on the island. In the last three months of last year, the sector grew by almost 6% compared to the same period in 2023. This growth coincides with the current government's term (2023-2027), during which they created a dedicated Department of Industry, led by Manuel Fernández. The maximum amount each company can receive from the subsidy remains at €30,000. This represents a continued effort to encourage investment in sustainability, digital technology, and modernizing industrial processes.

Manuel Fernández believes that supporting the industry is crucial for diversifying the economy. He emphasizes the need to move beyond just talking about diversification and make it a reality. That's why, upon taking office, they established the Department of Industry.

Fernández points out that industry in Tenerife has been neglected compared to other islands. Therefore, they're launching projects and initiatives to support industrial businesses. He also highlights the sector's role in creating stable, well-paying jobs and attracting investment.

One key plan is the Island Program for Improving Industrial Estates. This aims to create suitable environments for companies, workers, and customers. The Cabildo has invested around €20 million in this effort in recent years. They're also working to help create organizations that can properly maintain these industrial areas.

Additionally, various subsidy programs have been created to encourage companies to update their image, innovate, adopt digital technologies, modernize their operations, embrace the circular economy, and attract talented young people.

The Santa Cruz de Tenerife Chamber of Commerce reports that the number of people employed in the industry increased by 1.8% in the second quarter of the year compared to the same period last year. At the end of June, there were a total of 41,505 industrial workers in the Canary Islands, 542 more than the previous year.

However, a challenge remains: around 33% of industrial companies struggle to find qualified workers. Experts attribute this to a disconnect between the skills taught in schools and the needs of the job market. The Chamber of Commerce notes that some educational institutions are training young people for jobs that are either non-existent or already overcrowded, instead of focusing on emerging fields like artificial intelligence or ship repair. A new program called Dual Vocational Training aims to address this issue.

An island-wide plan is underway to revitalize the twelve industrial estates in Tenerife. The goal is to promote industrial activity as a key step towards diversifying the island's economy. The plan focuses on improving access and infrastructure in these areas, including Güímar, Granadilla de Abona, and others.

The Güímar Valley Industrial Estate, the second largest in the Canary Islands, is home to around 5,000 workers from over 250 companies. This complex, like others on the island, is undergoing a process of modernization.

Manuel Fernández believes that progress is being made in strengthening the industrial sector. Current figures show a slight growth, with over 17,400 direct jobs and 1,320 companies. He emphasizes that each direct job in the industry generates three indirect jobs, highlighting the importance of investing in this sector for economic growth, especially during times of international instability.

Fernández concludes that the goal is to continue implementing policies that will help the industrial sector thrive and become a key driver of Tenerife's economy.

Recently, the Cabildo de Tenerife held an awards ceremony to recognize excellence in the industrial sector. Lope Afonso, the island's vice president, reaffirmed the importance of industry to the island's economy and praised the hard work of local industrial businesses. Eight winners were recognized in various categories, including social and labor integration, environmental sustainability, international projection, industrial development, training and research, talent and innovation, and special recognition.