Macael case study

The creation of a cluster based on manufacture of building materials,

ceramics and ornamental products.

Cristina Medina

Agenda

• Local context

• Marble local economy

• Marble as a natural resource asset

• Introducing change

• Outcomes

• Conclusion

Local context

Marble local economyin the 80s

• Small scale • Dynamite• Quarries

boundaries

Extraction Transformation Comercialisation

• Product of low value added

• No uniform product• No capacity to attend

large orders• Narrow line of

artisanal products

• No commercialisation efforts

• National market

• Low integration with global value chains

Formal institutions-No services-Short credits

Informal institutions-Passive/static-Mistrust/individualistic-Resistance changes

-Low productivity-High transaction costs-Low competitivenes-Value added goes outside-Low level of technology

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

Introducing change

• Institutional commitment • Formation subcommitees

• Reseach and studies• Action plan • Shares vision of the future, Carrara

as a role model

Step 1:negotiating and action plan and Envisioning the future

Step 2:Building infrastructure/institutions

Step 3:planning firm investments

Step 4:Mobilizing resources

• 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

• 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

Introducing change

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)

Outcomes

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