Spain’s manufacturing sector has proved more resilient than those of several major European economies, with production now 4% above pre-Ukraine war levels, according to a new analysis.
The analysis, by trade credit insurance company Coface, found that Spain’s manufacturing performance has been supported by growth across a range of industries, including energy-intensive sectors such as paper, rubber and plastics.
Spain’s manufacturing exports have also maintained their share of the EU market since 2015, while Germany and France have seen their shares fall.
Coface said Spain’s relatively low labour costs may have helped manufacturers withstand recent economic and geopolitical shocks, with hourly manufacturing labour costs in 2025 remaining 43% below Germany, 40% below France and 14% below Italy.
However, the report highlights a productivity gap that could limit the sector’s competitiveness. Spanish productivity remains below the European average, with Coface pointing to the country’s greater reliance on small and medium-sized businesses, a less favourable human capital profile and lower innovation capacity as contributing factors.
Spanish manufacturing labour costs have also risen 15% since 2022, roughly 3% more than other countries.
Copyright © 2026 Energy Live News LtdELN