Supply chain bottlenecks continue to weigh on Morocco’s construction sector, with 16% of firms reporting significant difficulties in sourcing raw materials during the third quarter of 2024, according to data from the country’s statistics office (HCP).
The disruptions coincide with the construction industry’s gain in momentum, fueled by growth in housing construction, civil engineering, and specialized construction work.
Yet, the strain on material supplies risks undermining this progress, particularly as global supply chains remain under pressure from geopolitical tensions and fluctuating commodity prices.
Compounding the issue, 35% of Moroccan-based construction firms described their financial situation as “difficult” in the same period, suggesting that rising material costs and delayed deliveries are further squeezing cash flow.
Industry leaders warn that these two challenges could limit the sector’s ability to meet rising demand and maintain employment gains.
Despite these headwinds, the sector’s capacity utilization rate (TUC) – the percentage of a sector’s production capacity that is actively being used – stood at 66%, reflecting a moderate rebound in production. However, maintaining this momentum will depend on resolving supply chain inefficiencies and improving access to raw materials in the coming months.
As construction firms look to close the year on a strong note, addressing these supply chain and cash flow challenges will be critical to ensuring the sector’s stability and continued growth.