7.4 Million for the Island Industry: Kickstart or Drop in the Ocean?

More money, more modernization — but is it enough?

Late in the morning, under bright sunshine over the Plaça de Cort and the soft ringing of church bells, City Hall confirmed: €7.4 Million for the Island Industry: Kick-start or a Drop in the Ocean? to support the domestic industry. In the cafeteria, between espressos and conversations, one heard the dry comment: "Nice, but let's see whether the drill reaches the inland towns."

What exactly is it about?

The Balearic Islands are investing €7.4 million in 221 local businesses, mainly small and medium-sized enterprises from the wood and furniture industry, metalworking and food production. Many are located in industrial areas around Inca and Manacor, others in Sa Pobla or along the island's old artisan streets, such as Carrer de Sant Miquel. In the yard of a joinery the air still smells of sawdust while an old plane is carried out of the building — a symbolic sight for the planned renewal.

What is meant to be financed — and what is not?

The funds are intended for modernization, digitalization and substantial investments: new machines, digital control systems, energy-efficient equipment and conversions for more sustainable production processes. The region expects around 113 new jobs. For small communities this means tangible effects: one additional job can relieve a family, one more school bus can take another child.

The central question: who really benefits?

The grants look good on paper. But who decides about the distribution? The public debate often lacks the perspective of distributional fairness: will the funds be spread evenly across islands and regions, or will larger, better-networked companies get priority? There is a real danger that administrative hurdles will deter smaller workshops. A joiner on Carrer de Sant Miquel puts it bluntly: "Paperwork is my second job."

Underexposed aspects

Some points deserve more attention: first, the speed of disbursement. A business can order a machine — but if the funding takes months to arrive, production stands still. Second, qualifications: modern machines need skilled personnel to operate and maintain them. Third, supply chains: if spare parts or software are only available from abroad, the island remains dependent.

Opportunities that should be shaped now

The package is not a cure-all, but it offers starting points. Concretely we would keep an eye on:

1) Simplified application procedures: Mobile advisory teams in Inca, Manacor and Sa Pobla could check documents on site — less bureaucracy, faster payments. The sound of workshop gates would then more quickly be drowned out by new machines.

2) Bundling smaller projects: Small businesses could carry out joint digitalization projects — for example a shared CNC machine or a regional maintenance network.

3) Training and maintenance: Part of the funds should go into apprenticeships and maintenance centers so that investments do not fall silent after two years due to a lack of skilled workers.

4) Transparency and follow-up: A public register showing which companies receive which funding and what effects are measured could strengthen trust.

Why industry remains important

Anyone who watches Mallorca at breakfast — the bakers, the artisan stalls, the trucks in the early hours — quickly notices: industry and crafts are more than just numbers. They deliver goods, secure jobs outside tourism and keep traditional skills alive. When an old plane disappears in Sa Pobla and an energy-efficient machine is installed, it changes not only production but also the daily lives of the workers.

Conclusion: A good start — but risky without planning

The €7.4 million is a bold impulse. But without targeted measures for simplification, training and coordination, much of the funding could evaporate. The Balearic Islands must now watch closely: how quickly does the money flow? Who is held accountable? And will the kickstart become a sustainable modernization push that is truly felt in every village?

In the shade of the cypresses, when the afternoon sun warms the roofs of the workshops and the sound of trucks rolls along the country roads, the hope remains: that the investment will not just replace equipment but strengthen businesses — and thus make the island somewhat less dependent on seasonal tourism.