Elgóibar has long been an industrial town, and its economy continues to be driven by the manufacturing sector, particularly the production of machine tools. The town is home to several leading companies in the machine-tool industry, making it a center of innovation and engineering excellence in Spain. This industrial heritage dates back to the Middle Ages, when sword-making and metalworking were prominent, evolving into the high-tech industries of today.
While industry remains a key driver, the town is also seeing growth in tourism, thanks to its natural beauty, cultural festivals, and strategic location within the Basque Country. The town’s proximity to larger cities like San Sebastián and Bilbao makes it an attractive destination for business travelers and tourists alike. The development of small businesses, especially in the hospitality and retail sectors, is contributing to a more diversified local economy.
Local craftsmanship and artisanal products are also important to Elgóibar’s economy. The region is known for producing high-quality Basque products such as cheeses, wines, and cured meats, which are often sold at local markets and shops. These products are a reflection of the town’s deep-rooted agricultural and culinary traditions.