INTERES Invest in Spain

Aerospace

The Spanish aerospace industry is Europe’s fifth most important, with turnover of 4.2 million euros and employing close to 30,000 people. Madrid is the Spanish leader, with over 60% of the sector’s turnover concentrated here. This represents 3.3% of Europe’s aerospace business, with 2006 a growth rate of 15%, 3% higher than Spain, and 7% greater than the European.

Madrid is the most competitive location in Europe for companies in the sector. It is noteworthy for the following:

• Spain’s aerospace industry will experience the greatest growth in Western Europe, tripling production in the next nine years. Madrid will be one of the European regions with the greatest business opportunities in the sector for the next decade.
• Madrid is one of Europe’s most important and competitive aerospace clusters, internationally recognized and a leader in the production of composite aerostructures, integration of military transport aircraft and development of software and electronic equipment.
• Madrid has one of the largest pools of qualified labor in Europe, with 279,500 people in work in the high-tech sector and 40,000 people working in R&D. Madrid is Spain’s most important training center for aeronautical engineers, with over 400 engineers graduating each year.- Madrid has one of the largest pools of qualified labor in Europe, with 279,500 people in work in the high-tech sector and 40,000 people working in R&D. Madrid is Spain’s most important training center for aeronautical engineers, with over 400 engineers graduating each year.

Madrid houses some of the most important international companies in the sector, including EADS, Airbus SP, Eurcopter, EADS Astrium CRISA, Thales, Alcatel-Alenia Space, Indra, Aernnova, ITP and Iberia Mantenimiento, and has a significant representation of recognized R&D centers such as Boeing R&T Europe, INTA, ESA, NASA and FIDAMC.

Clean Energies

The Community of Madrid has prioritized a focus on the renewable energies sector, committing to double annual production by 2012 to 406 Kteps. Of the various renewable energies, the following stand out in Madrid for their growth potential: solar energy, natural and residual biomass, and industrial waste treatment.

The main advantages of our community are institutional support through the development of incentive plans and subsidies which promote investment in implementing these new energies, their consumption and R&D. In addition, the significant potential consumption in Madrid and in the national market drive many foreign companies to establish themselves in Madrid. Consumption of electrical power in the Community of Madrid is the highest in Spain, 24% above that of Catalonia, the number two autonomous community. Also noteworthy is the existence of internationally recognized research centers in the sector, including CIEMAT and the Institute of Solar Energy Solar at Madrid Polytechnic University.

Among other companies in the sector, firms such as ABB Power Technology, Acciona Solar, BP Solar, Enertron, Foster Wheeler, Gamesa, Isofotón, Made Tecnologías Renovables, Rahmen and Soluciones Energéticas are already in Madrid.

Distribution and Logistics Centers

In Spain, logistics and transportation activity represents 10% of the gross domestic product (GDP). Madrid is the leader in high value-added logistics, concentrating more than 80% of the country’s turnover, with 11 of the 14 biggest companies in warehousing and distribution, and 30% of courier and parcel delivery companies.

The main reasons for which Madrid attracts distribution centers for Southern Europe and Northern Africa and logistics companies are:

• Its exceptional strategic geographic location at the center of the Iberian Peninsula and access to providers/customers.
• Excellent intermodal infrastructure. More than 24.3 million m² of available infrastructure and logistics services. Madrid-Barajas is Spain’s number one airport in goods volume.
• National production and consumption center. Madrid represents 17.4% of GDP, absorbing 60% of the international flow of merchandise.

The main logistics operators with headquarters in Madrid are UPS, DHL, Schenker, Kühne Nagel, TNT, Nippon Express, Salvesen and Geodis. In addition, the following companies, among many others, have their distribution center for the Iberian Peninsula in Madrid: Sanofis-Aventis, Abbot Laboratorios, Toys ”R” Us, Decathlon, FNAC and Siemens.

Headquarters and shared services centers

The Community of Madrid has the highest concentration of business in Spain. One in five companies created in Spain has its headquarters in the city of Madrid. Of the 2,000 largest Spanish companies, 72% have their headquarters in Madrid.

In the Community of Madrid there are more than 25 shared services centers (SSC). These centers are primarily responsible for finance and HR for Southern Europe and Europe. There are also SSCs for ITC, whose focus in at the international level.

The main reasons for which Madrid attracts corporate headquarters and distribution centers for Southern Europe and Latin America are:

• The availability of qualified labor with multiple languages. In Madrid there are 14 universities with some 300,000 students. Madrid has the largest concentration of students studying languages, with 86.75% studying English, 17.5% French and 1.3% German.
• Spain has a radial highway and railroad system whose center lies in Madrid. In addition, Madrid-Barajas Airport is number one in Spain and number four in Europe in passenger traffic, as well as being the European hub for Latin America. (30% of routes to LaAm pass through Madrid.)
• National center of production and consumption. Madrid represents 17.4% of GDP, absorbing 60% of the international flow of goods.

Among others, the following companies have multi-lingual SSCs in Madrid: Cigna, Deloitte & Touche, DaimlerCrysler, Ericsson, Kraft, IBM and Roche. In addition, the following multinationals have corporate headquarters for a supra-national geographical area: Alcatel, BT, BP Solar, CEMEX, GE, IBM, Qualcomm, Repsol-YPF, Thyssen-Krupp, Software AG and Telefónica, among others.