Sunday, January 18, 2009

The economic crisis

The downturn in the Spanish economy is having a greater effect on some businesses than others.

The hardest hit seems to be the construction industry. Everywhere you see half finished projects and some that have barely been started. For example In Bigastro on Avenida Europa the land was cleared, fencing was put up roadways were set out but then nothing further has happened. It is the same further down where the plot was set out with electricity boxes and then left; the ambitious Sector D6 looks set to be a building site for many years to come; Villas Andrea II at the other end of town is at a stalemate and even work on the building between Avenida Libertad and Subida Palmeras seems to have come to a halt. Every town can tell the same story. San Miguel for example, is surrounded on three sides by a huge plot of land set out with roads, children's parks etc but not a house to be seen. You can't help but feel that it would have been better if these developments had been left as vacant land; at least they would be less unsightly.

It isn't just construction though that is suffering. All the related sectors are suffering too. We called in at Ardy, the large DIY shop near to Carrefour, on Friday. The building that housed the garden furniture is closed and all the furniture that was left has been transferred to the main building. Consequently there is a lot less room for DIY. Most of the furniture that is on sale is damaged or broken and is still at prices that you just would not pay. If that is all the shop has to offer then I can well believe that people will stop going there to even look.

Garden centres are another example of businesses that are suffering. Without new houses, there is a lot less demand for plants. I'm sure the same applies to furniture, lighting, white goods etc etc.

There are other examples which are not related to the slowdown in construction; for example the Unión RadioTaxi reports a 60% decrease in the volume of work for taxi drivers. Even our hairdresser tells us that he is suffering. The drop in trade for taxis I can understand but crisis or not you still need to have your hair cut.

In spite of the crisis, some businesses are still doing well. On Wednesday we went to visit IKEA and Primark just outside Murcia. IKEA was full and still as busy as ever but the Thader commercial centre and the one on the other side of the road where Primark is situated were near empty. I could well believe that some shops in those two centres saw no more than a dozen customers all day; even Eroski looked devoid of clientele.

Whilst the Habeneras near Torrevieja seems to be thriving, Ociopia just outside Orihuela has a lot of units empty now. It must be heartbreaking for some of these businesses that have tried hard to get it right but for whatever reason just haven't made it.

No comments: