Demand‐Driven Location of Repair Activities and the Local Distribution of the Circular Economy

ABSTRACT This paper explores the territorial embeddedness of repair at the local and regional level, which is part of the relatively understudied regional circular economy. This study involves the analysis of the dispersion of repair employment compared to other economic sectors as well as the degree of connection of repair activities to other economic sectors in the regional economy. This was showcased using local data from Galicia (NUTS ES11) and for the three distinct repair sectors in the NACE classification (repair of motor vehicles, computers and other household equipment and machinery). The results of this research point toward logics of location that follow proximity to potential demand, but with each repair sector exhibiting a unique pattern. Simultaneously, the assessment of integration with other economic sectors has shown that repair activities are particularly dependent upon imports and that intermediate demand is an important part of the total demand of the sector, which suggests that demand does not simply mean final users but also businesses.