Clearly, locals would produce their own goods if they could. Tradesmen such as blacksmiths and tailors were common in every community. The heavy hand of the Spanish government still found ways to regulate these activities including dictating the quality of goods produced and the prices the individuals could charge for their services.
Trade guilds known as Gremios became the governing entities over such activities and a means to control price and production.
The only way craftsmen could bypass such restrictive oversight was through the liberal and judicious use of bribes, kickbacks, and other corruptions of the system.