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Justin's Life

Welcome to my new blog. I plan to write about all sorts of things here, my life in Spain, ineresting things and ideas I've come across, places I've visited and so much more. Hope you enjoy it and please leave comments as your input is always appreciated.

Why the property crash has caused such high unemployment
22 May 2012 @ 00:31

 A rare site has appeared in recent days in the village of Manilva. A crane!

Crane in Spain

No, they are not building any new houses, they are working on a new “plaza” in the village, but these famous cranes used to litter the entire coastline. It was very strange to see one again, a few years ago you couldn’t drive one kilometre without seeing one. They became part of the landscape, a sign of a truly booming economy.

Today they are a rare site, apart from the few abandoned ones you see now and then.

But this one in the village today got me thinking about all the people behind the construction boom. We tend to think of developers and labourers as being the ones most affected, but the impact goes so much deeper than this.

A few years ago you would see lorry after lorry pounding the roads taking rubble away from construction sites. You’d see lorries bringing doors, windows, bathroom supplies and everything else that a property needs.

All the different service and manufacturing companies servicing the new developments have all massively suffered from the crash causing the current unprecedented levels of unemployment in the country.

Off the top of my head here are some of the types of companies which have been adversely affected by the crash (and yes, they will have done incredibly well out of the boom in the first place):

1. Cement manufactures

2. Brick manufacturers

3. Doors and windows manufactures

4. Bathroom sinks/baths/bide/taps manufacturers and suppliers

5. Kitchen manufacturers and suppliers

6. White goods manufacturers and suppliers

7. Crane manufacturers and servicing

8. Lorry manufacturers, importers, servicing companies, parts
suppliers, lorry drivers

9. Air conditioning manufacturers and importers

10. General construction equipment suppliers

11. Sign makers and advertising billboard suppliers

12. Brochure printers and graphic designers

13. Garden plant/ trees growers and suppliers

14. Plumbing equipment suppliers

15. Electrical equipment suppliers

16. Tile manufacturers and suppliers

17. Furniture manufacturers and suppliers

18. Garage doors manufacturers and suppliers

19. Lights manufacturers and suppliers

20. Post box manufacturers and suppliers

OK, I’ll stop now but when you start to think about all the different types of businesses that were growing in line with the construction boom, and employing more and more people, it does make you start to realise just how many different related industries have suffered with the collapse of the property market.

And where on Earth are all those hundreds of thousands of now unemployed people working in these different sectors going to find jobs now?

It’s a scary thought.



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5 Comments


foxilady said:
25 May 2012 @ 10:50




foxilady said:
25 May 2012 @ 10:59

another great article Justin. It was only yesterday i was having a chat with hubby about exactly the same knock on effect here in UK. I am so tired of politicians saying ours is a european problem, it isn't its a UK problem in that the building industry and all associated industries have ground to a halt here and this is a major contributor to our problems. Our new government have down played the problems and over predicted growth - it's now clear that this is a recession made in Downing Street by this government's failed policies. New stats show we are digging deeper into another recession, and they want to get us spending again and someone at the IMF had a bright idea which they suggested to Mr King lower the interest rate to savers to 0% - now that's a brilliant idea isn't it? It will force people to spend any savings they have on property and thus we start the whole merry go around again, and property prices rise! The fact is i believe they haven't a clue what to do next, they tried QE and that didn't work, perhaps they should consult a psychic?


pauline said:
25 May 2012 @ 16:46

Yes, the knock on effect of the property crash is what has fundamentally caused most of the problems with unemployment in Spain and it is certainly going to take a long time before we see any sort of improvement in those horrific unemployment figures.


David said:
27 May 2012 @ 11:05

Cranes in Spain (written in 1978)

Winter’s come with a chill breeze
Britons no longer bare their knees
Or lounge in bars among palm trees
It’s not the Spain that they recall
Before old sterling went freefall
The Euro’s too dear by miles
A UK pension brings no smiles
So none will invest in flats and casas
Builders get no credit from the Cajas
So, we’ll not see a single crane
‘til fiscal summer comes again.



marlowjen said:
28 May 2012 @ 20:04

Sorry foxilady, but what utter tosh. Maybe you should look a bit further back as the blame lies with Tony Blair and Gordon Brown for just hoping the problems would go away and they spent, spent as if no tomorrow. Just check our what they spent on schools and hospitals and see the mess they are in, with so many children sadly leaving school who are barely literate. Just ask the teachers and GP's what they think!!!

I actually feel very sorry for this government inheriting such a mess!!!

And yes, I agree with Justin!


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