Macael cluster case
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This case study examines the creation of a cluster in Macael, Spain focused on building materials, ceramics, and ornamental products. [1] Originally, the local marble industry was small-scale and informal with low productivity, relying only on the national market. [2] However, research found Macael's white marble was highly durable and of exceptional quality, indicating potential. [3] An action plan was implemented to introduce new infrastructure, institutions like marketing cooperatives, and attract private investment to modernize extraction and finishing processes.
Macael cluster case
- 1. Macael case study The creation of a cluster based on manufacture of building materials, ceramics and ornamental products. Cristina Medina
- 2. Agenda • • • • • • Local context Marble local economy Marble as a natural resource asset Introducing change Outcomes Conclusion
- 4. Marble local economy in the 80s Transformation Extraction • • • Small scale Dynamite Quarries boundaries • • • • Informal institutions -Passive/static -Mistrust/individualistic -Resistance changes Product of low value added No uniform product No capacity to attend large orders Narrow line of artisanal products -Low productivity -High transaction costs -Low competitivenes -Value added goes outside -Low level of technology Comercialisation • • • No commercialisation efforts National market Low integration with global value chains Formal institutions -No services -Short credits
- 5. Marble as a natural resource asset • A research found Macael white marble was the most plentiful in Spain and more durable than Carrara’s and exceptional high quality. • It should strive to become a formidable competitor in the national and European marble industry
- 6. Introducing change Step 1:negotiating and action plan and Envisioning the future Step 3:planning firm investments • • • • • • Institutional commitment Formation subcommitees Reseach and studies Action plan Shares vision of the future, Carrara as a role model Step 2:Building infrastructure /institutions • • • • Building infrastructure (electricity, roads…) Creation of formal institutions: purchasing cooperative, and joint sales cooperative Creation of a brand name Investment plan to attract finance from private institutions • Research about Macael firms industrial processes (product lines, output quality, laes capacity. Skills. Plan to introduce technology based on existing capacities and future role of the firm Step 4:Mobilizing resources • • • • • Public subsidies through GAEIA fund Private loans Institutional marketing among elite and public opinon (Presmios de Mármol) Invitation of decison makers tomake visits Publitize the sucess of the action plan
- 8. Outcomes • • • • • • • Mechanisation, larger marble blocks and high quality finished product Rationalisation of the exploitations Growth of artisanal sector, and intermediate industry and service sector 397 firms and 5.471 workers. (195 in the sector and 202 auxiliary sector). Between 1996-2000 creation of 55 new firms, some of the them high technological firms. Center of Stone Technology: R&D Added value remained in the area Exports from 14,1 millions € in 1998 to 57,2 millions of € in 2003. 67,2% USA and importing marble form Turkey, Italy and Portugal (from 1.250 in 1997 to 31.657 in 2003)
- 9. Outcomes
- 10. Conclusion • Based on quality competition and specialisation • Firms in network with firms/Competition with collaboration • Role of public and private institutions (formal and informal) • Territorial competitiveness based on agglomeration of activities/complement (they cover all value chain) • Strategic government policy • http://www.youtube.com/watch?v=VHWzYaHmiis#t=47
Editor's Notes
- #4: Mapa y grafico de barras Spain is one of the main producer of piedra ornamental; marmol y caliza in the world, in 2009 it was 7th position in the world with 6,7% of total production. It has 466 quarries and 63 varieties of marble Graph 2 Almería which is the province where is Macael, Almeria is a desertic region, it main resources are the agriculture, tourism (at the coast area) and marble. It is an adverse environment for firms because it is far away (periphery position) from the areas of dense economic activity of the country. Yet It produce the 42% of volume of extraction. The graph shows the weight of the provinces. The green is Almería. Mapa de la comarca: La Comarca del marmol in Almeria is a rural area of 800 square meters, with 14 towns and a population of 43. 000 Macael, Olula del Río, Fines, Cantoria, Lijar and Purchena are the main towns.
- #5: It was a factor driven stage: firms were competing on the basis price and selling the basic product, to a regional moderate demand. On the demand side: the lack of local demand greatly inhibited firms growth and was severe growth and performance constraint. On the supply side: -Low productivity -High transaction costs -Low competitivenes -Value added goes outside -Low level of technology Local business enviroment lack the basic infrastructure and Industry-specific institutions (electricity supply, regulatory environment…) and informal institutions (mistrust, static) and lack of associational capacity of the firms As a consequence less and less revenues and area losing population. Little capacity to adapt to economic change, as well as to improve resistance to negative sectorial shock.
- #6: Porter 4 factors of competitiveness (demand, competition among firms and complemetaries industryes or factor endowmen. In this case the key factpr as the 4th factor, “availability of natural resources”. Availability, durable but most important exceptional quality. It was a territorial advantage In 1982 decentralisation process in Spain (administrative and political, still little fiscal): the regional government assumed the leading role on local economic development of the area to pass from a factor driven stage to a efficiency driven stage marked by a production process based on efficiency and product quality. The key issue is how to differenciate their products and how to raise the national and international demand
- #7: Essential for growth is the capacity to develop new competitive advantages. Two factors: •Market access: getting access to production network. Getting access to market implies either participating in existing chains, constructing new ones, or reconfiguring other chains. In all cases it involves the coordination and co-action of various public and private sectors. It can tigger endogenous regional development. •Infrastructure: creating industry-specific infrastructure
- #8: Principal actors: business aso. Local of macale, regional gover (IPIA), Rafael Escribano,the provincial mining official the actors involved in the plan. The regional government as the key actor: 1.Service delivery, source of economic opportunity through local spending 2. Intervened to define local public interest and the broad direction of LED. 3. Enable or facilitate other actors to make a more efficient contribution toward solving LED problems The regional government did not have the resources but had the “capacity”: a combination of internal coherence and external connectedness which can be called embedded autonomy. Also persuation and political ability to mobilise resouces. Innovative arrangements including vertical pacts between local government and national agencies as well as agreements with private sector organisations around the marble sector of macale (multistakeholder initiatives)
- #9: Specialisation among local producers, created internal economies of scale, generate increasing returns and enhances competitive position. They operate as a group in particular production, processing or marketing activities. Tigger related and supporting industries. Import/export port trade