Construction Boom in Morocco
15 August 2008
Read by 2961 persons
It’s undeniably a boom time for the construction industry in Morocco. Thanks to the boost from the sector's program contract (2004-2007), Moroccan companies have found a framework in which they could flourish and demonstrate their true added value. They have even managed the feat, which seemed almost impossible a short time ago, of winning international contracts and positioning themselves as champion companies.
Moreover, this was one of the main objectives of the deal, namely to put in place a strategy for the development of construction companies.
However, even if the playing field has become clearer for national skills, foreign firms continue to cause "damage", according to Bouchaïb Benhamida, president of the National Federation of Construction. Indeed, they bid on national contracts but in some cases fail to complete the work they have undertaken and consequently fail to honor their contracts. As a result, deadlines are not met, causing considerable losses of time and money.
To catch up, new calls for tenders must be organized and the associated additional costs must be borne. "This constitutes a threat to the performance of national companies," laments the president of the National Federation of Construction, who specifies that everything has been done to raise the awareness of the sector's partners, namely the government, to this phenomenon.
"Foreign companies, mainly SMEs, undercut prices and disrupt the market," he points out, and this without any real added value. And Benhamida underlines: "Moroccan companies are just as qualified as foreign companies to carry out this work. There is nothing magical about our profession." As a reminder, the rise of the real estate market and the launch of major projects in the Kingdom are at the origin of the good performance of the construction industry. Strong growth was recorded in the second quarter of 2007 (12% year-on-year, compared to 6.7% in 2006). The dynamism of the sector is confirmed by the evolution of cement sales, which increased by 12% compared to 2006. Similarly, the number of employees increased by 6.9%.
The growth forecasts for the sector, put forward by the contractors, are favorable. In addition, the synthetic indicator of the construction industry's economic situation, established by the National Institute of Economic Analysis (INAC) and the High Commission for Planning (HCP), anticipates a continuation of the upward trend. An increase of 11.6% in the sector's added value, year-on-year, was estimated for the 3rd quarter of 2007 and a forecast of 10.9% for the whole of 2007.
Construction Materials Too
The upward trend in construction activity has also been observed in the construction materials sector. Growth concerned, in particular, the production of cement, glass and metal products, whose production index increased by 11.8%, 4% and 2.9% respectively, in annual variations.
Published on January 15, 2008
Posted online on August 15, 2008
L’Economiste
Moreover, this was one of the main objectives of the deal, namely to put in place a strategy for the development of construction companies.
However, even if the playing field has become clearer for national skills, foreign firms continue to cause "damage", according to Bouchaïb Benhamida, president of the National Federation of Construction. Indeed, they bid on national contracts but in some cases fail to complete the work they have undertaken and consequently fail to honor their contracts. As a result, deadlines are not met, causing considerable losses of time and money.
To catch up, new calls for tenders must be organized and the associated additional costs must be borne. "This constitutes a threat to the performance of national companies," laments the president of the National Federation of Construction, who specifies that everything has been done to raise the awareness of the sector's partners, namely the government, to this phenomenon.
"Foreign companies, mainly SMEs, undercut prices and disrupt the market," he points out, and this without any real added value. And Benhamida underlines: "Moroccan companies are just as qualified as foreign companies to carry out this work. There is nothing magical about our profession." As a reminder, the rise of the real estate market and the launch of major projects in the Kingdom are at the origin of the good performance of the construction industry. Strong growth was recorded in the second quarter of 2007 (12% year-on-year, compared to 6.7% in 2006). The dynamism of the sector is confirmed by the evolution of cement sales, which increased by 12% compared to 2006. Similarly, the number of employees increased by 6.9%.
The growth forecasts for the sector, put forward by the contractors, are favorable. In addition, the synthetic indicator of the construction industry's economic situation, established by the National Institute of Economic Analysis (INAC) and the High Commission for Planning (HCP), anticipates a continuation of the upward trend. An increase of 11.6% in the sector's added value, year-on-year, was estimated for the 3rd quarter of 2007 and a forecast of 10.9% for the whole of 2007.
Construction Materials Too
The upward trend in construction activity has also been observed in the construction materials sector. Growth concerned, in particular, the production of cement, glass and metal products, whose production index increased by 11.8%, 4% and 2.9% respectively, in annual variations.
Published on January 15, 2008
Posted online on August 15, 2008
L’Economiste
