Logistical problems, payment delays, rising energy prices. Very lucky are the industrialists in the sectors that manage to hold their own in the current context where whole sections of the economy are hard hit by the succession of crises.
9.9% jump achieved at the end of March 2022 by the pharmaceutical industry, in terms of production volume. 6.6% increase in the volume of production in the printing industry and reproduction of recordings, or a 5% increase in the volumes produced in the furniture manufacturing industry.
Very lucky are the manufacturers of the sectors which manage to hold their own in the current context where whole sections of the economy are hard hit by the succession of crises and their corollary (logistical problems, payment deadlines, rise in the price of energy…).
To the first sectors mentioned, we can add those of the production and distribution of electricity, whose production volume rose by 4.2% in the first quarter, the industries of Manufacture of other transport equipment and Manufacture of machinery and equipment whose production volumes both jumped by 2.7%.
The performance of all these sectors is obvious, especially when analyzing the latest information note published by the High Commission for Planning relating to the production index of manufacturing industries excluding oil refining.
Contacted by Les Inspirations ECO, Mohamed El Bouhmadi, President of the Moroccan Federation of Pharmaceutical Industry and Innovation (FMIIP), a sector that culminates at the top of the most resilient, explains this performance: “With the Covid-19 pandemic 19, there was a big breath of fresh air in the market in terms of drugs linked to the Covid treatment protocol, but also drugs treating winter pathologies, in particular the flu. Added to this is a small panic of the population, who sought to buy drugs to build up their stock, thinking that there was going to be a shortage. Faced with this, producers were required to meet this demand, but also to build up stocks. This explains, in my opinion, this peak in production volumes in the first quarter of 2022”.
Will this race for drugs and the stockpiling trend continue and for how long? “Normally, once stocks are built up and the market is regulated, we return to a normal rhythm,” explains El Bouhmadi.
Furthermore, “with the introduction of universal social security coverage, which Her Majesty is in the process of putting in place, the sector will also see a positive impact on its production volumes, as there will be demand from all the drugs that will be part of the care basket, ”explains our source.
Lower production volumes in several sectors
All sectors are not housed in the same boat, the effects of successive crises continue to leave their mark on the performance, even the productivity of some. This is reflected in particular by the drop in production volumes in several manufacturing industries.
One of the industries that perfectly reflects what is happening in the field is that of the repair and installation of machinery and equipment. This industry is among the most affected with -16.7% in production volume. Which is quite revealing of the significant drop in production capacity in the industrial fabric.
While purchasing power is falling, due to inflation, households are limiting spending on certain expense items, orders are falling, and factories are idling. Several machines are therefore at a standstill. The production index of manufacturing industries excluding oil refining recorded a drop of 2.3% during the first quarter of 2022 compared to the same period of 2021.
This development results in particular from the drop in the production index of the chemical industry (-8.6%), the food industries (-1.3%), the manufacture of electrical equipment (-3.4% ), the manufacture of rubber and plastic products (-3.2%), the automotive industry (-2.6%), the clothing industry (-1.6%) and the textile industry (-2.3%). With regard to the fall in production volumes in the chemical industry, this is partly explained by the effects of the crisis affecting the real estate sector, an important outlet for industrialists such as those in the paint industry.
“In the first quarter, professionals in the sector kept almost the same level of volume produced as in the first quarter of last year”, explains a source within the Federation of Chemistry Parachemistry.
This statement is confirmed by data released by Colorado at the end of the first quarter. “The tonnage produced during the first quarter remained stable compared to 2021 to stand at 10,000 t”. In addition, the paint manufacturer raises another issue related to production volumes: the financing of input imports.
Colorado recorded an increase in its net indebtedness, which is mainly explained by the use of refinancing of input imports. Even if it adds that the level of medium-term debt remains very low compared to equity (7.6%).
During the first quarter, Colorado improved its revenue by just 2.1%. This confirms that there are not many sales, hence certainly a slowdown in production volumes. In terms of volumes sold, the tonnage sold for Q1-2022 increased by 3% compared to the same period last year.
Modeste Kouamé / ECO Inspirations