How did the factory’s operation help diversify the economic base of Palma in the early 20th century?

The factory’s operation in Palma during the early 20th century played a significant role in diversifying the city's economic base beyond its traditional reliance on agriculture and maritime trade. Prior to industrial development, Palma’s economy was largely centered around farming, fishing, and commerce tied to its strategic coastal location. The establishment of the factory introduced a new industrial sector that provided alternative employment opportunities for the local population, attracting workers from rural areas and contributing to urban growth.

This industrial presence stimulated ancillary businesses, including transportation, logistics, and supply chains needed to support factory production. As a result, the economic landscape of Palma became more varied, reducing vulnerability to fluctuations in the agricultural market or maritime trade disruptions. The factory also fostered skill development among workers, promoting a shift from manual labor in farming and fishing to specialized roles connected with manufacturing and mechanized processes.

Moreover, the factory’s operation encouraged investment in infrastructure such as roads and utilities, further modernizing Palma and making it an appealing destination for other industrial ventures. This period marked a gradual transformation of Palma into a more complex economy that balanced traditional activities with emerging industrial output. Ultimately, the factory helped lay the groundwork for Palma’s evolution into a diverse economic hub, blending heritage industries with new sectors that would support the city's growth throughout the 20th century and beyond.