Morocco's manufacturing industry increases by 75% in Q4, HCP

Morocco's manufacturing industry increases by 75% in Q4, HCP
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Friday 25 March 2022 - 16:00

The manufacturing industry rate of capacity utilization (TUC) has increased by 75% in the 4th quarter of 2021, according to the High Commission for planning’s recent survey.

In the same quarter, manufacturing output is expected to have increased as a result of higher production in the “Food industry”, “Metallurgy” and “Manufacture of other non-metallic mineral products” branches.

However, “Manufacture of beverages” and “Manufacture of electrical equipment” branches have witnessed a lower production, said HCP.

Employment is said to have remained stable in the manufacturing industry.

As for production in the extractive industry, it dropped due to the decrease in phosphate production as well as employment.

The production in the energy industry would have experienced a decline due to the decrease in “Production and distribution of electricity, gas, steam and air conditioning.”

Orders are considered to be at a normal level, while employment is said to have increased, said HCP.

The production in the environmental industry recorded stability attributable to a stagnation of the activity of “Collection, treatment, and distribution of water”.Orders remained at a normal level as well as employment.

Expectations for the first quarter of 2022

In the first quarter of 2022, more than half (53%) of manufacturing companies said they faced difficulties in the supply of raw materials, mainly those imported.

Inventories of raw materials during this quarter are at a normal level and cash flow is considered “difficult” by 27% of employers.

By branch, this proportion reaches 40% in the Textiles and leather industry.

Construction sector to remain stable

The expectations put forward by business leaders in the Construction sector for the 1st quarter of 2022 show overall, stability of activity, according to HCP.

This stagnation comes as a result of the increase in activity in the “construction of buildings index,” and the decrease of activity expected in the “Civil engineering index.”

This survey says this stagnation in the construction sector will be accompanied by stability in the number of employees.

In the first quarter of 2022, 40% of Construction companies said they faced difficulties in the supply of raw materials. As for cash flow, 46% of business leaders consider it difficult.

By branch, this proportion reaches half of the companies in the “Specialized Construction Works” branch.

Expectations in all industry sectors for first quarter of 2022

In the first quarter of 2022, companies in the manufacturing industry expect their production to be stable.

These expectations are attributable to an increase in activity in “Metallurgy” and “Electrical equipment manufacturing”indices. On the other hand, a decrease in the “Chemical industry” and “Automotive industry”.

With regard to employment expectations, industrialists generally expect the number of employees to remain stable.

In the mining sector, companies are expecting a drop in production. This decrease is mainly due to the drop in phosphate production. In terms of the number of employees, employers in this sector are expecting a decline.

The energy production expected for the first quarter of 2022, would see a decrease attributable to a decline in the “Production and distribution of electricity, gas, steam and air conditioning. As for employment, it would experience a decrease.

In the same quarter, companies in the environmental industry anticipate stable production, mainly in “Water collection, treatment and distribution index, and stable employment, according to the same source.

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