Rabat – Since the beginning of the pandemic, the Moroccan industrial sector mobilized the totality of its capacities, facilities, and factories towards the production of necessary and scarce medical equipment and sanitary products.
This provisional reorientation allowed the sector to avoid a full stagnation of the sector, and helped maintain momentum in time for the relaunch of the economy in the second half of 2020.
Today, the national industrial sector is fully operational as the second annual quarter commences.
The High Commission for Planning (HCP) issued a study of the first quarter, and published its forecast for the various industrial sub-sectors in Morocco.
For the first quarter of 2021, production in the manufacturing industry experienced a slight decline in the automotive industry and “Manufacture of other transport equipment” branches.
The decrease is credited to low demand, says the report.
However, employment is reportedly stable. “Overall, the rate of capacity utilization in the manufacturing industry is established at 75%.”
Morocco’s automotive industry has thrived in the past decade and is one of the key pillars in the country’s economy. The returns of the sector are expected to increase, as Morocco prioritizes improving competitiveness through deep local integration and manages to maintain its export market shares.
The industrial sector did witness an increase in production from the food industry and the manufacturing of fabricated metal products, with an exception of machinery and equipment manufacturing branches.
Manufacturing companies do expect an increase in production, notes the HCP study. This forecast is the result of a noticeable increase in activity for both the food manufacturing industry and the chemical manufacturing industry.
Employment within the manufacturing industry is expected to remain stable for the next quarter.
Returns in the extractive industry rose in the first quarter of this year, due to “higher than normal” demand, says the HCP.
Mining and quarrying companies expect their production to remain stable for the rest of the year due to a stagnation in phosphate production. No major changes are expected to occur in employment.
The energy industry experienced a slight decrease, reports the HCP.
Production in the sector also recorded a decrease in its employment rate despite maintaining “normal” demand.
Demand decreased by 5 % in 2020 due to the pandemic. This decrease was noticed throughout different sub-sectors: 9 % for oil, 8 % for coal, 3% to 5 % for gas, and 2 % for electricity. The fluctuating demand for energy can also be traced to a decrease in investments in the field, mounting up to an 18% decrease in 2020.
The HCP also expects an increase attributable to the surge in the national production and distribution of electricity, gas, steam, and air conditioning reports the same source. Employment is expected to follow the first quarter’s trend and record an additional decrease.
The Moroccan government was counting on its investments in the renewable energy sector, to counter this change in global demand. But the professionals’ forecast did not come to life, due to the weak competitiveness of prices on the global market. The government also emphasized that its renewable energy sector is mainly oriented towards Morocco’s own energy consumption, as the country tries to transition to fully sustainable electricity sourcing.
Companies in the environmental industry also anticipate an increase in production for the upcoming quarter, particularly in water collection, treatment, and distribution activities. In addition, stability is expected regarding the number of employees.
Thanks to a rate of capacity utilization of 83%, the environmental industry recorded high sector returns for this first quarter. The HCP also credited the turnover to a growth of activity in the water collection, treatment, and distribution sector.
The Moroccan construction sector reported a slight decrease in activity in the past quarter due to the low demand and multiple halted construction plans in light of the COVID-19 pandemic. Employment rates from the sector also recorded a substantial decrease and the general capacity utilization rate stands at 62%.
“The expectations put forward by business leaders in the Construction sector, for the 2nd quarter of 2021, point to an overall stability of activity,” concludes the HCP report.
