Casablanca – Morocco’s construction sector is set for growth in the third quarter of 2025, according to the latest data from the High Commission for Planning (HCP). Business leaders in the sector anticipate an overall increase in activity, driven by gains in civil engineering and specialized construction projects, even as building construction is expected to decline. The sector’s expansion, however, is likely to be accompanied by a slight drop in employment.

Looking back, the second quarter of 2025 already saw a relative recovery in the construction sector. Civil engineering and specialized construction activities recorded gains, compensating for the decline in building construction. Order books were considered to be at normal levels, while employment remained largely stable. The sector’s capacity utilization rate reached approximately 72%, indicating that a significant portion of production resources were being used efficiently.

Despite the positive trends, operational and financial challenges persist. Around 11% of construction companies faced difficulties in sourcing raw materials, while 30% reported cash-flow pressures during the second quarter. These issues, particularly the supply challenges, reflect broader trends seen across Morocco’s industrial sectors, where raw material shortages have affected a range of industries from manufacturing to extractive operations.

The HCP’s broader quarterly survey highlights mixed results across other sectors. Manufacturing production increased, with employment remaining stable and a capacity utilization rate of 74%. The extractive sector, however, experienced a decline in production, even as product prices rose, leading to decreased employment. In the energy sector, production increased alongside rising prices, but employment contracted. The environmental industry remained stable in both production and employment.

Looking forward, the HCP projects continued growth for the third quarter of 2025. Manufacturing and extractive industries anticipate higher production with stable employment, while the energy sector expects increased output accompanied by a reduction in workforce. The environmental industry is forecast to maintain stable production and employment levels. For construction, the outlook remains positive overall, with rising activity tempered by an expected decline in employed personnel.

Cement sales continue strong growth through August 2025

Supporting this optimism, Morocco’s cement market has maintained significant momentum. By the end of August 2025, cement shipments delivered by members of the Professional Association of Cement Companies (APC) reached 9.6 million tons, up from 8.7 million tons during the same period in 2024, representing a 10.38% increase, according to the Ministry of Urban Planning, Housing, and City Policy.

Sales in August alone totaled 1.3 million tons, compared with 1.2 million tons in August 2024, marking a 6.54% rise. Breaking down sales by category: cement for distribution accounted for 5.27 million tons, ready-mix concrete totaled 2.4 million tons, precast concrete reached 984,097 tons, infrastructure projects used 627,815 tons, construction accounted for 280,154 tons, and cement-based plaster sales reached 43,561 tons.

The ministry noted that this growth reflects “unprecedented momentum” in cement sales, a key indicator of construction and public works activity in Morocco. The increase is linked to ongoing or recently completed projects across the country, particularly in public investment sectors such as dams, water facilities, roads, ports, airports, and sports infrastructure. July 2025 alone saw a notable 17.57% increase in sales compared with July 2024.

The growth figures are based on internal data from APC member companies, including Ciment de Tamara, Ciment Atlas, Ciment du Maroc, LafargeHolcim Maroc, and Novacem (the latter joining in January 2024), highlighting strong performance across Morocco’s major cement producers.

Analysts note that while the construction sector shows resilience and growth potential, challenges such as raw material sourcing and cash-flow pressures could temper expansion if not addressed. Nevertheless, the combination of increased activity in civil engineering, specialized construction, and robust cement sales points to a sector that is rebounding and adapting to evolving market conditions.

As Morocco continues to develop its urban and infrastructure projects, the construction sector and its associated industries, including cement production, will remain key drivers of economic activity. With careful management of operational challenges, the sector is well positioned to sustain growth into the second half of 2025 and beyond.