Casablanca – Morocco’s manufacturing sector is poised for a period of growth, with optimistic projections for increased production and sales across most industries, according to recent reports from the High Commission for Planning (HCP) and Bank Al-Maghrib. While several sectors anticipate upward trends, others face uncertainties and stagnation.
Anticipated growth in key sectors
In the fourth quarter of 2024, industries such as automotive manufacturing, chemicals, and non-metallic mineral products are expected to see significant production gains. The mechanical and metallurgical industries also forecast robust growth in production and sales over the next three months.
October data reflected these positive trends, with mechanical and metallurgical production achieving a capacity utilization rate (TUC) of 89%. Sales growth in these sectors was driven primarily by increased exports. Similarly, the chemical industry reported an October TUC of 79%, bolstered by higher local sales and growing orders.
The agro-food industry is also experiencing momentum, with operators expecting continued growth in production and sales, both locally and internationally. October saw a 70% TUC in this sector, with order books surpassing normal levels.
Challenges in textiles and electronics
Not all sectors are experiencing a growth trajectory. The textile and leather industries anticipate stagnant production in the coming months, despite a projected rise in sales. October’s performance showed mixed results, with growth in leather and footwear offset by stagnation in clothing and a decline in textiles. Order books in these industries remain below normal, and 24% of operators expressed uncertainty about production trends.
Meanwhile, the electrical and electronic sectors project stagnation in both production and sales. October’s TUC of 82% was marked by stable exports but increased local sales.
Investment boost in textiles
A significant development in the textile industry is the planned $422 million investment by Chinese group Sunrise. This initiative will establish integrated industrial complexes, aiming to create 11,000 direct jobs over three years in various regions across Morocco.
Mixed performance in energy and extractive industries
The energy sector faces a contrasting outlook, with production expected to decline due to reduced electricity and gas output. Employment levels are also projected to drop. In contrast, the extractive industry forecasts growth in production, primarily driven by increased phosphate output.
Outlook and uncertainties
Despite the overall optimism, some challenges persist. A reported 34% of manufacturing companies struggled with sourcing imported raw materials in the third quarter of 2024. Financial constraints remain a concern, with 15% of operators describing their liquidity as “difficult,” rising to 35% in the pharmaceutical industry.
The manufacturing sector’s capacity utilization rate averaged 77% in Q3 2024, reflecting a steady but cautious growth environment.
Morocco’s manufacturing industry is navigating a complex landscape of growth opportunities and sectoral challenges. With strong performances in automotive, chemicals, and mechanical industries, coupled with significant investments in textiles, the sector is set to play a pivotal role in Morocco’s economic development. However, persistent uncertainties and resource constraints underscore the need for strategic measures to sustain momentum and address vulnerabilities.
