Moroccan Textile Industry Faces Order Slump as Global Demand Weakens

"We must recognize that the sector is indeed recovering from the health crisis and also from the impact of the war in Ukraine, but the orders, especially foreign ones, are not at their usual level for this time of year," says Mohamed Dairi, president of the Amith Fès, to La Vie éco. Yassine Aarrou, president of Amith de Tanger, agrees: "the order books are 30 to 40% full, whereas usually at the beginning of the year, we were at a rate of 70%." The drop in orders is also explained by the reduction in household spending on clothing (less than 200 euros).

The "misfortune" of the Fès and North units is to have specialized in subcontracting. The North area has nearly 300 units, 95% of which are involved in subcontracting for clients and 80% of these companies work for a single client, the Spanish group Inditex. "When Inditex is doing well, the Tangier factories are running and they sometimes even call on units in the Fès region. But, in the opposite case, it is the crisis," explains Mohamed Dairi.

Faced with this harsh reality, it is necessary to diversify the clients and opt for a reorientation towards the finished product. The second option is not, however, the best. "We have major obstacles: first of all the size of the 200 companies in the region. They are small and employ an average of 60 people. Then, the supply of raw materials is also a problem," says the president of the Amith Fès, suggesting to invest first in the development of the upstream sector. "Local sourcing of inputs will certainly open up important opportunities for the sector," he is convinced.