1-Outsourcing seeking synergies:

1-1-Morocco has managed to attract a host of subcontractors and suppliers:

The Automotive Equipment sector has been experiencing rapid acceleration in recent years. In 2016, it realized close to 60 billion DH in terms of turnover and by 2017 the sector expects to reach 70 billion.
"We have discovered several opportunities for mutualisation and synergies between the two sectors," says Tajeddine Bennis, President of the Amica Industry College. Subcontracting is experiencing a phenomenal explosion.

1-2-Operators are confident and hope to reach 110 billion DH by 2020:

By 2020 this potential will exceed 10 billion. If we add the needs of the aeronautics industry, the purpose is easy, according to Bennis, ‘’to increase the competitiveness of manufacturers settled in Morocco and attracting others’’. Especially today, the country has many assets that facilitate implantation: an administration with a very dynamic team responsive to the Ministry of Industry with a vis-à-vis team dedicated to The Amica, confesses Bennis.

On the financing side, the state puts its hand with an industrial development fund, this is the case of several companies that first came as exhibitors at the Subcontracting Exhibition, which the 4th edition was held in Tangier a few weeks ago and then came to realize their implantation. A scheme that has enabled the country to have subcontractors in practically all the areas expected by the automotive sector. On the other hand, one of the limitations of the sector is the poverty of Morocco in raw materials.

"It is true that it is a handicap, but we are working to reduce its scope," reassures Bennis. For the batteries, lead, which is the raw material, is starting to be produced in Morocco with very efficient recovery systems.

Suardiaz connects Tangier to Saint-Nazaire

The Spanish ship owner Suardiaz reinforces its project of motorway of the sea with two weekly departures that will be put in place between Saint-Nazaire and the port of TangerMed. Suardiaz also increases the frequency of the connection to Vigo, with a fourth weekly departure...

The showcase of this sector makes progress

In less than 4 editions, the Subcontracting Exhibition has succeeded in gaining its acclaim and becoming a showcase of Moroccan excellence in this field, with a number of exhibitors that almost quadrupled. The number of visitors is also growing according to the Amica. The objective is to help the development of equipment manufacturers by giving them competitiveness. The aim is to give subcontractors the opportunity to visit the region and show them the business potential.

 

2-What alternatives to Detroit?

In terms of logistics, Morocco has come a long way. Ten years ago, before the entry into the TangerMed port, prices for the crossing of the Strait of Gibraltar reached indecent levels with an average of 600 Euros, or nearly 7,000 DH per trailer.
Since then, things have evolved well and prices have fallen to 300 to 350 Euros. But it is too expensive. "For manufacturers, logistics today remains an obstacle to Morocco's competitiveness, but it is not insurmountable," insists El Azzouzi.

As a proof, the multitude of companies and SMEs specializing in wiring and caps for seats that have multiplied in recent years. Despite that the logistical costs, margins remain acceptable, said El Azzouzi. Logistics costs vary in a range of 5 to 20% depending on the type of product and its volume. But those in the wiring sector, Morocco's largest employer sector represent between 3 and 6% (between import and export), which is manageable.

Can we do better? Yes but we must find other lines. "Instead of delivering the truck to Algésiras to take the road to Vigo (one of the nerve centers of the automotive industry in Spain) why not have a direct line to this city?

A first work was done on lines that already exist. This is the case of the company Neptune which has three departures a month from Tangier to Vigo. The latter carries vehicles built in Tangier to Europe and there is a room for usable space.

Otherwise, another way is to work with other companies such as Suardiaz to make Moroccan equipment suppliers and Renault boats twice a week connecting Tangier and Vigo on the way back and forth. "This line was requested by PSA to connect the two factories of the group in Vigo with the future unit of PSA in Kenitra.

As expensive as the Channel crossing

Morocco is separated from Europe by an inlet of 15 kilometers and the logistical cost of crossing is about the same level of the Channel between France and England, which does not make sense. It is true that the frequencies and capacity on the Channel are more important, but the prices remain high, by the lack of dynamism of the shipping companies.

Ily Es

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