Looking to source and procure products beyond China? Explore the potential of Southeast Asia’s emerging sourcing markets by establishing buying offices in market for a more effective, agile and resilient supply chain.

The winds of change are blowing through global supply chains. The once-dominant position of China as the world’s manufacturing hub is facing increasing scrutiny. Companies are re-evaluating their global sourcing strategies, with a growing emphasis on diversification, risk mitigation, reduced shipping times and environmental impacts.

This blog post delves into the reasons behind this shift and explores how buying offices can navigate the complexities of spreading their sourcing base across different countries.

ET2C International Unique Buying Office Model

ET2C International have over 23 years’ experience as Global Sourcing Experts. Our 200 colleagues are based in 7 offices across developed and emerging Asian sourcing markets to be your feet on the round. Creating your bridge to your Asian supply partners.

Many of our clients have developed their dedicated Asian buying offices with us. Taking advantage of our unique model that mitigates all the risk of establishing a dedicated team whilst releasing all the benefits of a team on the ground and direct supply relationships. Removing the challenges of office space, recruitment, staff isolation, HR, Payroll and Legal in a simple solution. Our teams can rapidly establish dedicated teams in China, India, Vietnam and Turkey to rapidly take your Global Sourcing to the next level. Buying Office Model

To find our more about our unique Asian Buying office model drop us a line at contact@et2cint.com 

Why Diversification is Becoming the New Mantra for Global Sourcing and Procurement teams

Beyond Cost:

While China has historically offered significant cost advantages, factors like rising labour costs, trade tensions including tariff wars and WTO disputes are prompting companies to look beyond the bottom line.

Supply Chain Resilience: The COVID-19 pandemic exposed the vulnerabilities of over-reliance on a single source and Just in time supply chains. Companies are now prioritizing supply chain resilience, seeking to spread their sourcing risk across multiple countries. Reducing shipping times and building closer partnerships between company and supplier.

Geopolitical Instability: Rising geopolitical tensions and potential trade wars are influencing global sourcing strategies. Companies are seeking to mitigate risks associated with dependence on a single region. Post Pandemic disputes lodged with WTO have increased dramatically creating further pressures on the previously smooth-running global trade network

Consumer Preferences: Consumers are increasingly concerned about ethical sourcing practices, environmental sustainability, and product quality. Diversification can help companies address these concerns by sourcing from countries with strong ethical and environmental regulations. Reducing corporate and product risk and measuring and reporting on environmental impacts.

Benefits for Sourcing and Procurement teams of Diversifying Sourcing Locations

Reduced Risk: Spreading your sourcing base minimizes the disruption caused by unforeseen events in a single country. Natural disasters, labour strikes, or political instability can have a lesser impact on your overall supply chain.

Improved Negotiation Power: By sourcing from multiple countries, you gain leverage in negotiations with suppliers. Increased competition among suppliers can translate to better pricing and contract terms.

Access to New Markets: Diversifying can open doors to new markets with specific skillsets or resources. This allows you to tap into a wider range of supplier expertise and potentially source unique products.

Enhanced Innovation: Exposure to diverse manufacturing environments and cultural perspectives can foster innovation. Close collaboration with suppliers in different countries through a dedicated local team can develop new ideas and product development opportunities.

Improved Brand Perception: Demonstrating a commitment to responsible sourcing by diversifying across countries with strong ethical and environmental standards can positively impact your brand image whilst reducing the potential for corporate reputational risk.

 Challenges of rapidly establishing a dedicated sourcing and procurement team in new markets

Increased Complexity: Managing a geographically dispersed supply chain requires more complex logistics, communication, and quality control measures.

Hidden Costs: Setting up operations in new countries may involve initial costs for establishing relationships with suppliers, navigating regulations, and adapting to different business cultures.

 Quality Control Challenges: Maintaining consistent quality across multiple suppliers in different countries requires robust quality control processes and a strong local presence.

Longer Lead Times: Managing logistics across different countries can potentially lead to longer lead times, requiring careful planning and inventory management.

Cultural Differences: Communication and collaboration can be more challenging due to cultural differences, language barriers, and varying business practices across countries.

How Buying Offices Can Facilitate Diversification: Whilst delivering Commercial Competitive advantage benefits

1. Market Research and Supplier Identification:

Buying offices can conduct in-depth research to identify potential sourcing locations that align with your company’s needs and values. They can leverage their local expertise to source reliable and ethical suppliers in different countries.

2. Supplier Qualification and Negotiation:

Experienced buying offices can evaluate potential suppliers based on factors like quality, capacity, pricing, and adherence to your ethical sourcing standards. They can negotiate competitive contracts and manage supplier relationships in the local language.

3. Quality Control and Compliance:

Maintaining consistent quality is crucial. Buying offices can conduct on-site inspections at your suppliers’ facilities, ensuring adherence to your quality standards and relevant regulations. They can also assist with navigating customs procedures and import/export regulations.

4. Logistics Management:

Efficient logistics are essential for a diversified supply chain. Buying offices can manage freight forwarding, customs clearance, and ensure timely delivery of goods from various countries.

5. Cultural Bridge and Communication:

Cultural sensitivity is key. Buying offices can bridge the cultural gap between your company and your suppliers in different countries, facilitating smooth communication and fostering productive working relationships. …

Asia & Global Sourcing Revolution: Diversify Your Sourcing with Buying Offices in Emerging MarketsRead More »

Introduction

In recent years, the global market for oxygen generators has witnessed remarkable growth, driven by an ever-increasing demand for medical oxygen, industrial applications, and environmental considerations. One of the key players in this expansion is China, where a significant number of oxygen generators are being built to support both domestic and global requirements. In this blog post, we will delve into the fascinating world of oxygen generators, explore the factors fueling their growth, and shed light on China’s pivotal role in meeting the surging global demand.

ET2C International

We are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of 250 colleagues are based in seven offices in key sourcing markets across Asia.  Our expertise covers a range of industrial and machinery applications. From Oxygen generation to Food Mixers. We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities y or to discuss your future supply chain challenges. Please contact@et2cint.com

Understanding Oxygen Generators

Before we delve into the market dynamics and China’s contribution, let’s start by understanding what oxygen generators are and why they are in such high demand.

Oxygen generators are devices that produce high-purity oxygen from ambient air through a process known as pressure swing adsorption (PSA) or membrane separation. These generators have a wide range of applications, including:

1. Medical Oxygen generators play a crucial role in hospitals and healthcare facilities, where they ensure a steady supply of medical-grade oxygen for patients with respiratory disorders, during surgeries, and in emergency situations.
2. Industrial A rnage of industries, such as steel manufacturing, petrochemicals, and aerospace, require oxygen for processes like combustion, oxidation, and wastewater treatment. Oxygen generators provide a cost-effective and reliable source of oxygen for these applications.
3. Environmental In environmental applications, oxygen generators are used for water treatment and in sewage treatment plants, helping to enhance the efficiency of biological processes.
4. Aviation Oxygen generators are also essential in aviation, providing breathable air to passengers and crew in pressurized cabins at high altitudes.
5. Scuba Diving: Divers rely on portable oxygen generators for underwater adventures, ensuring their safety and prolonging their dive times.

Factors Driving the Growth of Oxygen Generators

Several factors have contributed to the remarkable growth of the oxygen generator market on a global scale:

1. Healthcare Needs The COVID-19 pandemic highlighted the critical importance of medical oxygen. Hospitals worldwide faced unprecedented demands for oxygen as they treated severe cases of the virus. As a result, governments and healthcare institutions are now investing in oxygen infrastructure to prepare for future health crises.
2. Industrial Expansion Rapid industrialization and urbanization in emerging economies have increased the demand for oxygen in various industrial processes. Oxygen generators offer a more cost-effective and reliable source of oxygen compared to traditional methods like liquid oxygen tanks or cylinders.
3. Environmental Concerns With growing environmental awareness, industries are adopting cleaner technologies that use oxygen to reduce emissions and enhance environmental compliance.
4. Technological Advancements Advances in PSA and membrane separation technologies have made oxygen generators more energy-efficient, compact, and easy to maintain, further driving their adoption.
5. Accessibility Oxygen generators are becoming more accessible to a wider range of users due to their improved affordability and ease of installation.

China’s Pivotal Role in Meeting Global Oxygen Demand

China, often referred to as the “world’s factory,” has played a significant role in meeting the surging global demand for oxygen generators. The country’s commitment to industrial growth and technological innovation has made it a hub for oxygen generator production and export.

1. Manufacturing Powerhouse China boasts a vast manufacturing infrastructure, with numerous companies specializing in the production of oxygen generators. This has allowed for economies of scale, leading to competitive pricing and ample supply for the global market.
2. Technological Advancements Chinese companies have been at the forefront of developing cutting-edge oxygen generator technologies. Their innovations have led to more efficient and reliable devices that meet the stringent requirements of various industries.
3. Export-Oriented Approach China has embraced an export-oriented strategy for oxygen generators, catering to global demand. This approach has been pivotal in ensuring a steady supply of oxygen generators to countries worldwide.
4. Supporting Healthcare Recognizing the importance of medical oxygen, China has ramped up production to support global healthcare needs. This has been especially crucial during the COVID-19 pandemic when countries relied on Chinese-made oxygen generators to supplement their healthcare infrastructure.
5. Investment in Research and Development China’s commitment to research and development in the field of oxygen generators has led to the creation of innovative products that are not only efficient but also environmentally friendly.

The Impact of China’s Growth on the Oxygen Generator Market

China’s rapid growth in the oxygen generator industry has had a profound impact on the global market:

1. Increased Supply The influx of oxygen generators from China has helped meet the growing global demand. This increased supply has been vital in ensuring that industries have access to a reliable source of oxygen for their processes.
2. Competitive Pricing Chinese manufacturers’ ability to produce oxygen generators at competitive prices has lowered the entry barrier for many businesses, making oxygen generator technology more accessible worldwide.
3. Technological Advancements China’s investments in research and development have not only improved the quality of oxygen generators but have also driven innovation in the field. As a result, customers benefit from more advanced and efficient equipment.
4. Diverse Product Range Chinese companies offer a wide range of oxygen generators tailored to different applications, ensuring that industries can find solutions that suit their specific needs.
5. Global Distribution Network China’s global reach has enabled the distribution of oxygen generators to virtually every corner of the world, ensuring that even remote regions have access to this critical technology.

Future Trends and Challenges

As the global demand for oxygen generators continues to grow, several trends and challenges are likely to shape the industry’s future:

1. Technological Innovation Continued investment in research and development will drive further innovation, resulting in more energy-efficient and environmentally friendly oxygen generators.
2. Sustainability The industry will face increasing pressure to reduce its environmental footprint, pushing for the development of greener technologies and more sustainable manufacturing processes.
3. Healthcare Preparedness Governments and healthcare institutions will continue to invest in oxygen infrastructure to be better prepared for health emergencies like pandemics.
4. Supply Chain Resilience Ensuring a resilient supply chain for critical medical and industrial equipment, including oxygen generators, will be a top priority for countries worldwide.

Conclusion

The growth of the oxygen generator market is a testament to the critical role these devices play in various sectors, from healthcare to industry and the environment. China’s emergence as a key player in this industry has been instrumental in meeting the growing global demand, thanks to its manufacturing prowess, technological innovation, and export-oriented strategy. As we look to the future, oxygen generators will continue to evolve, becoming more efficient and environmentally friendly, ensuring a steady supply of oxygen for diverse applications across the globe.

For more information or to explore the opportunity for Oxygen generators or Air Separators drop us a line at contact@et2cint.com

Introduction 

In a remarkable demographic shift, India has achieved a momentous milestone by surpassing China in population, making it the world’s most populous nation in 2023, with over 1.4 billion people. This pivotal turning point carries far-reaching implications, particularly for India’s manufacturing sector. As the nation garners global attention, the substantial population surge offers a plethora of opportunities and challenges that could reshape manufacturing dynamics, with direct implications for product sourcing, factory investment, and the labour pool.

ET2C International, a leading Global Sourcing company, stands at the forefront of leveraging India’s sourcing potential to fuel manufacturing growth. Our 250 colleagues are based in offices across major sourcing markets. To become your bridge to your global sourcing partners, giving you feet on the ground to remove issue of time zones, language, auditing or business communication expectations.

In this blog, we delve into the significance of India’s demographic ascendancy and explore the profound effects on the manufacturing sector, with a spotlight on ET2C’s role in accessing Indian sourcing.

A Demographic Milestone and the Manufacturing Landscape

For decades, China’s demographic dominance propelled it to the forefront of global manufacturing, playing a pivotal role in international trade. However, India’s rise to become the world’s most populous nation signifies a monumental shift in population dynamics, influencing various sectors, including manufacturing. This demographic transformation offers India a unique window of opportunity, known as the demographic dividend, where the working-age population outnumbers dependents. A catalyst to drive significant economic growth.

 

Unleashing India’s Market Potential

India’s burgeoning population comes with a built-in advantage – a burgeoning domestic market that manufacturers can tap into. With over 1.4 billion potential consumers, India presents an expansive and diverse marketplace for products. This presents an enticing proposition for businesses to prioritize local product sourcing, potentially reducing dependence on international imports and fortifying domestic production.

ET2C International has for over twenty years played a crucial role by connecting global manufacturers with Indian suppliers. The company’s expertise in global sourcing facilitates efficient and cost-effective procurement strategies, harnessing the benefits of India’s vast and varied industrial landscape. Through collaborations with local partners, ET2C enables businesses to tap into India’s burgeoning consumer base while optimizing supply chains for enhanced efficiency and reduced costs.

Make in India

“Make in India” initiative is a campaign launched by the Government of India with the aim of promoting manufacturing and encouraging domestic and foreign investment in various sectors. Launched by Prime Minister Narendra Modi as part of his broader vision to transform India into a global manufacturing hub and boost economic growth. The initiative encompasses a wide range of sectors and policy measures designed to accelerate Indias growth and challenge Chinese supremacy as the workshop of the world. Key aspects of the strategy include::

1. Manufacturing Growth: The primary goal of the Make in India initiative is to stimulate manufacturing growth and increase the contribution of the manufacturing sector to India’s GDP.
2. Ease of Doing Business: The initiative focuses on improving the ease of doing business in India by simplifying regulations, reducing bureaucratic hurdles, and creating a more investor-friendly environment.
3. Investment Promotion: Make in India aims to attract both domestic and foreign investment in various sectors by showcasing India’s potential as a manufacturing destination.
4. Infrastructure Development: The initiative recognizes the importance of infrastructure in supporting manufacturing growth. Improving transportation networks, energy supply, logistics, and digital connectivity are key components.
5. Sectors: Make in India covers a wide array of sectors, including but not limited to automobiles, textiles, electronics, defense, aerospace, chemicals, pharmaceuticals, biotechnology, renewable energy, construction, and food processing.
6. Intellectual Property Rights (IPR) Protection: The initiative emphasizes the importance of intellectual property rights protection to encourage innovation and technology transfer.
7. Skilled Workforce: The Make in India initiative acknowledges the need for a skilled workforce to support manufacturing activities. Skill development programs and initiatives are promoted to enhance the employability of the labour force.
8. FDI Promotion:Foreign Direct Investment (FDI) is a key focus of Make in India. The initiative aims to liberalize FDI policies and attract foreign investors to establish manufacturing units in India.
9. Single Window Clearance: The initiative promotes the concept of a single-window clearance mechanism to streamline approvals and reduce bureaucratic red tape for setting up businesses.
10. Global Manufacturing Hub: Make in India seeks to position India as a global manufacturing hub by offering competitive advantages, including cost-effectiveness, a large consumer market, and a skilled workforce.
11. Local Sourcing: While promoting global investment, the initiative also encourages companies to source materials locally, contributing to domestic supply chains and the growth of small and medium-sized enterprises (SMEs).
12. Government Initiatives: Various government policies and initiatives have been launched under the Make in India umbrella, such as “Skill India,” “Digital India,” and “Startup India,” which complement the overall manufacturing growth objectives.

Overall, the Make in India initiative is designed to create an environment conducive to manufacturing growth, attract investment, boost job creation, enhance innovation, and propel India’s industrial development. It serves as a comprehensive platform for policy reforms and sector-specific initiatives aimed at transforming India into a global manufacturing powerhouse.

ET2C International: Elevating Global Sourcing in the Indian Context

As a Global Sourcing company, ET2C International plays a pivotal role in capitalizing on India’s sourcing potential. Its expansive network of suppliers and partners in India positions the company at the forefront of harnessing the nation’s manufacturing capabilities. By facilitating efficient product sourcing, streamlining factory investment, and contributing to workforce development, ET2C enhances India’s prospects of becoming a manufacturing powerhouse.

Conclusion

India’s ascent to become the world’s most populous nation in 2023 is a monumental event that holds profound implications for the manufacturing sector. The burgeoning population provides a foundation for enhanced product sourcing, increased factory investment, and the harnessing of a productive labour pool. In this transformative landscape, ET2C International emerges as a key player, bridging the gap between global businesses and India’s burgeoning manufacturing ecosystem.

As India embraces its demographic advantage and positions itself as a manufacturing juggernaut, the collaborative efforts of Global Sourcing companies like ET2C are pivotal in realizing this vision and shaping the future of global manufacturing.

Why should I get a sourcing company like ET2C International?

• Language barrier:  It can be difficult to communicate with suppliers. A sourcing company with teams on the ground can help you communicate with suppliers and ensure that you are getting the best possible deal.
• Cultural differences:  It can be difficult to understand the nuances of Indian culture without the help of a local. Helping you navigate Indian culture and avoid making any cultural faux pas.
• Lack of experience: If you are new to global sourcing, it can be helpful to have the assistance of a global sourcing company. Who can help build and deliver your sourcing strategy.

If you would like to know more or explore potential opportunities further drop us a line at contact@et2cint.com

Turkey’s machinery export growth is making waves in the global sourcing arena. Learn about Turkey’s unique advantages as a sourcing destination, from its strategic location to its strong infrastructure and favourable trade agreements. Discover why Turkey is a rising star for sourcing.

Turkish Machinery exports passed a new milestone in trade, exceeding $10 Billion in the first 5 Months of 2022. The growth has made them a destination country for global sourcing and procurement. As Sourcing teams look to diversify their supply chain, near shore some elements and mitigate risks (Environmental and Geo-Political)

Turkish Export Growth

Growth in Turkish exports has come from over 200 countries who increasingly recognise what Turkey can bring to the table as a sourcing destination.

Turkey background

The Republic of turkey is a country of 80m people, a transcontinental state spanning Asia and Europe. Turkey has land borders with eight countries. From Bulgaria and Greece to Iran and Syria.  Putting Turkey at the crossroads of Asia and Europe.

 Turkey Industrial Machinery Exports

Industrial Machinery is the second largest export market for Turkey.

The average growth delivered by this sector has been over 15%. Exporting to over 200 countries with over half going to the EU or USA. The biggest product category strengths are:

1. Air conditioning and Cooing equipment
2. Engines
3. Washing and drying machines
4. Construction machines
5. Pumps and Compressors

ET2C International

We are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of 250 colleagues are based in seven offices in key sourcing markets across Asia Including our new offices in Izmir (Turkey’s third largest city)

We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities within Turkey or to discuss your future supply chain challenges. Please contact@et2cint.com

Reasons for Sourcing from Turkey

Turkey in addition to a highly skilled workforce and long history of exporting Machinery and Components can point to a range of additional strong positive factors for choosing Turkey as your sourcing destination.

1. Strategic location: Turkey occupies a strategic location between Europe and Asia. This makes it an ideal hub for businesses that want to export their products to both markets.
2. Good infrastructure: Turkey has a good infrastructure, including roads, airports, and ports. This makes it easy to transport goods in and out of the country.
3. Favourable trade agreements: Turkey has free trade agreements with over 20 countries, including the European Union. This means that businesses that source products from Turkey can avoid paying import duties in many markets.

Morocco is a great sourcing destination for several reasons, including its strategic location, its skilled workforce, and its free trade agreements with Europe and the United States. The country also offers several other advantages, such as its low-cost labour and its business-friendly environment.

Background

The Kingdom of Morocco is in the Maghreb region of North Africa bordered by both the Mediterranean Sea and Atlantic Ocean, directly facing Spain across the straits of Gibraltar. A population of over 37million it is the only Monarchy in North Africa.

Morocco’s economy has grown steadily over the past 5 years, averaging 4% annual growth. This growth has been driven by several main export products and services:

1. Tourism: Morocco is a popular tourist destination, and tourism has been a major driver of economic growth. In 2021, Morocco received over 13 million tourists, generating $8.6 billion in revenue. 
2. Foreign direct investment: Morocco has attracted significant foreign direct investment (FDI) in recent years. In 2021, FDI inflows to Morocco totalled $2.3 billion. This FDI has helped to finance new projects in a variety of sectors, including manufacturing, tourism, and infrastructure. 
3. Exports: Morocco’s exports have also grown steadily in recent years. In 2021, Morocco’s exports totalled $27.5 billion. This growth has been driven by strong demand for Moroccan goods in Europe and the United States. 
4. Domestic demand: Moroccan consumers have had more disposable income, which has led to increased spending on goods and services.

ET2C International

We are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of 250 colleagues are based in seven offices in key sourcing markets across Asia.

We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities within Morroco or to discuss your future supply chain challenges. Please contact@et2cint.com

 Government support for business

The Moroccan government has implemented several reforms to improve the business environment and invested in infrastructure projects and educational reform. Morocco export products are vitally important to economic growth. The reforms and investments made so far to support major exports are proving successful. As a result, Morocco’s economy is expected to continue to grow in the coming years. The IMF projects that Morocco’s economy will grow by 3.5% in 2023 and 4.5% in 2024. Morocco’s economic growth strategy is focused on four main pillars:

1. Investment in infrastructure: Morocco has invested heavily in infrastructure in recent years, including roads, railways, ports, and airports. This has helped to improve the country’s connectivity and make it more attractive to foreign investors.
2. Diversification of the economy: Morocco is diversifying its economy away from traditional sectors such as agriculture and tourism. The government is promoting the development of new sectors such as manufacturing, IT, and renewable energy.
3. Human capital development: Morocco is investing in human capital development by improving the quality of education and training. This is helping to create a more skilled workforce, which is essential for attracting foreign investment and promoting economic growth.
4. Regional integration: Morocco is a member of the African Union and the Arab Maghreb Union. The government is promoting regional integration to create a larger market for Moroccan goods and services.

These four pillars are essential for Morocco’s economic growth strategy. By investing in infrastructure, diversifying the economy, developing human capital, and promoting regional integration, Morocco is well-positioned to achieve sustainable economic growth in the years to come.

Export diversification building on Agricultural heritage

The diversification of the economy is supporting Morocco’s main export products. Morocco’s focus on expanding its export business has seen the development of manufacturing industry alongside Agriculture as part of Plan Maroc Vert. Morocco’s  economic growth strategy has several core elements :

1. The Plan Maroc Vert(Green Morocco Plan): This plan is aimed at modernizing Morocco’s agricultural sector and making it more competitive.
2. The Tanger Med Special Economic Zone: This zone is designed to attract foreign investment and promote the development of manufacturing and logistics industries.
3. The Mohammed VI Polytechnic University: This university is being built to train the skilled workforce that Morocco needs to achieve its economic growth goals.
4. Investment in transport infrastructure: As a key enabler to economic growth Morocco has invested in a wide range of infrastructure projects.

• The construction of a new high-speed rail line between Tangier and Casablanca. This line is scheduled to be completed in 2023 and will cut the travel time between the two cities from four hours to two hours.
• The expansion of the port of Tanger Med. Tanger Med is Morocco’s largest port and is one of the busiest ports in Africa. The expansion project will increase the port’s capacity by 70%.
• The construction of a new highway between Casablanca and Rabat. This highway is scheduled to be completed in 2022 and will reduce the travel time between the two cities from two hours to one hour.

These investments are expected to boost trade between Morocco and Europe and make Morocco a more attractive destination for foreign investment.

Major Investors in Moroccan Infrastructure

China has become a major investor in Morocco due to its strategic position and free trade agreements with both Europe and United States. Chinese investment has encompassed a range of strategic initiatives.

• Tangier-Med II port:This is a new deep-water port located in Tangier. It is the largest port in Morocco and one of the largest in Africa. The port was built by a Chinese company, China Harbor Engineering Company (CHEC), and was financed by the China Development Bank.
• Noor Ouarzazate solar power plant: This is a large solar power plant located in Ouarzazate. It is the largest solar power plant in Africa and one of the largest in the world. The plant was built by a consortium of Chinese and Moroccan companies and was financed by the Export-Import Bank of China.
• Casablanca-Rabat high-speed rail line: This is a new high-speed rail line that connects Casablanca and Rabat. The line is 186 kilometers long and was built by a consortium of Chinese and Moroccan companies. The line was financed by the China Development Bank.
• Kenitra Atlantic port:This is a new port located in Kenitra. The port is being built by a Chinese company, China Communications Construction Company (CCCC), and is financed by the China Development Bank.

Moroccon Main Export Markets

Morocco benefits from a strong strategic location for Global Sourcing. It has access to a skilled and cost effective labour force. Free trade agreements with USA and Europe make it an ideal country to use as a sourcing destination. Key export product categories are

Agriculture

Morocco is known for exporting products such as citrus fruits, vegetables, olives, and fish. This diversity of produce allows them to fulfil internal consumption and have enough left over for export. It enjoys a Mediterranean climate, characterized by mild, wet winters and hot, dry summers. This climate, along with a network of rivers and groundwater reserves, facilitates irrigation and agricultural production. Additionally, the country has made substantial investments in water management and irrigation systems, enhancing agricultural productivity.

Textiles

The textile industry in Morocco has a long history which has developed a highly skilled and low labour cost. Close proximity to Europe and Free Trade agreements make Morocco a major exporter of textiles to the world.

Machinery

The Moroccan government has focused on diversifying its major exports to include engineering and machinery. It has established several industrial parks that specialize in the production of machinery. These parks offer businesses several advantages, such as access to infrastructure, skilled labour, and tax breaks.

The Moroccan government has also provided financial assistance to machinery businesses, such as loans and grants.

Doing business in Morocco

The government is business friendly making it easy to operate a business in Morroco. The significant infrastructure investment is also a crucial enabler to making business simpler.

However, it’s important to note that sourcing from Morocco can also come with challenges. Language barriers, cultural differences, intellectual property protection, and ensuring supply chain transparency are factors that require careful consideration and management.