1. The Entry of American Capital - Insular Lumber Company
Meanwhile, sometime in 1907 the Insular Lumber Company, reputed to be the biggest hardwood mill in the world, was established in what is now called Barangay Fabrica. Though measures to prevent the denudation of Sagay’s rich forest were made, reforestation program failed. Later, the denuded areas were converted mostly into sugarcane fields and some into corn fields. With the exhaustion of the forest resources of Sagay, the ILCO - Philippines was phased out in 1975 and later transferred to Hinoba-an.

2. Lopez Sugar Corporation
Another major industrial development give Sagay another big step forward the establishment of Lopez Sugar Corporation in the 1920’s. Also during these years, sugar, copra, lumber and fishing became the important source of income for the inhabitants. The economic growth of Sagay brought about influx of migrants from Iloilo, Cebu and Bohol. This trend made Sagay a melting pot of ethnically different but equally hardworking Cebuanos and Ilonggos.

With this developments, business and industry flourished. Leading both sectors were big businessmen and industrialists like the Lopezes, the Cuaycongs, the Jizons, the Gamboas, and the Vasquezes. The sugar boom brought the fore old timers in the industry like the Pueys, the Nichols, the Katalbases, and the Tupases, which branched out to the Marañons, the de la Pazes, the Ibrados and the Libo-ons.

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