The guitarras hecho de mano (hand-made) guitars are made of madera macizo (solid wood). Most of the guitar makers work on their own or with family members in a small workshop. It is amazing to see that, even today, these high-quality instruments are still built with very simple tools. The guitarrero himself often applies the varnish (barniz), mostly goma laca (shellac), by hand. Others, mostly big manufacturers, have the shellac, or sometimes synthetic lacquer, applied by a varnisher with a ”pistola” (spray-gun).
Apart from the guitarras hecho de mano there are the so-called guitarras de fábrica (factory guitars) or the guitarras de Valencia. In the area around Valencia there are many guitar factories or bigger workshops producing guitars in the lower price range and also so-called Flamenco guitars which are, however, mostly made of madera contrachapeada (plywood). Without a doubt, these instruments are guitars. But to find a Flamenco guitar among them which also sounds “flamenco” seems unlikely to me. However, many of these manufacurers also build guitars in the middle price range. Some of them are not bad, considering the price to product relationship. Some big names have their cheaper models built in Valencia according to their own designs and then sell them in the maestro’s taller or in shops. However, these guitars are easily distinguishable from a guitarra de primera clase, because although they bear the famous maestro’s label, it is not signed; or the cabeza, a guitar maker’s trademark, has nothing in common with the original. Still, you may find an instrument among these guitars which sounds better than many a primera clase.
Source: Flamenco Guitar Method Graf-Martinez