The slow deindustrialization process, now being accelerated by the crisis, the strong weight of metallurgy, iron and steel oriented to automotive and machine tool sectors (both sectors in crisis), lack of diversification processes and scarce or no existence of new entrepreneurial activities make the economic situation difficult to overcome.
The city has to deal also with the demographic changes and aging population. So far, it is a challenge to look for new solutions or rethink the existing social services and social-health care strategies.
Over the last decade Legazpi has made a great effort to recover its heritage and industrial culture as the identity of the municipality by being recognized as the Valley of Iron. Nevertheless, this strong root to industrial heritage and activity affects negatively to the identity of the town, especially regarding youth’s people perception of the town.