Kingdom
Industry: Companies Anticipate a Production Increase
In the fourth quarter of 2025, order books in the sector are considered to be at a normal level by business leaders. Employment, meanwhile, is reported to have remained stable. Overall, the capacity utilization rate (TUC) in the manufacturing industry is estimated to have reached 75%.
Manufacturing companies anticipate an increase in their production level in the fourth quarter of 2025, according to the High Commission for Planning (HCP).
This development would be primarily attributable, on the one hand, to an increase in activity in the “Automotive Industry,” “Chemical Industry,” and “Food Industry” sectors and, on the other hand, to a decrease in that of the “Manufacture of Electrical Equipment” and “Paper and Cardboard Industry,” explains the HCP in an information note related to the quarterly business surveys of the manufacturing, extractive, energy, and environmental industries, as well as construction.
Regarding employment expectations, industrialists generally foresee stability in the number of employees employed, according to the same source. As for the extractive industry, companies in this sector anticipate a decrease in their production for Q4-2025.
This development would be mainly due to a decrease in phosphate production. In terms of the number of employees, business leaders in this sector expect an increase.
The expected energy production for the fourth quarter of 2025 would see a decrease attributable to the decline in “Production and Distribution of Electricity, Gas, Steam, and Air Conditioning.” As for employment, it would experience a reduction in the number of employees during the same quarter.
For the same quarter, companies in the environmental industry anticipate stable production, particularly in “Water Capture, Treatment, and Distribution” activities, and stability in the number of employees employed.
In the third quarter of 2025, manufacturing production is reported to have increased, resulting from a rise in production in the “Chemical Industry,” “Food Industry,” and “Manufacture of Other Non-Metallic Mineral Products” sectors, and a decrease in production in the “Automotive Industry” and “Manufacture of Electrical Equipment” sectors.
Order books in the sector are considered to be at a normal level by business leaders. Employment, meanwhile, is reported to have remained stable.
Overall, the capacity utilization rate (TUC) in the manufacturing industry is estimated to have reached 75%.
The HCP also reports that 29% of manufacturing companies encountered difficulties in sourcing raw materials in Q3-2025, primarily those of foreign origin.
Raw material stocks during this quarter are reported to have been at a normal level, and cash flow was considered “difficult” by 20% of business leaders. By sector, this proportion reaches nearly 45% in “Textile Manufacturing.” As for production in the extractive industry, it is reported to have increased due to a rise in phosphate production. Selling prices for products in this sector are reported to have increased, and employment is reported to have decreased.
Energy industry production, for its part, is reported to have recorded growth, primarily attributable to increased activity in the “Production and Distribution of Electricity, Gas, Steam, and Air Conditioning” sector.
Selling prices for energy sector products are also reported to have increased. Employment, meanwhile, is reported to have decreased.
Production in the environmental industry is reported to have remained stable, attributable to stagnant activity in “Water Capture, Treatment, and Distribution.” Regarding order books in this sector, they are reported to have been at a normal level, and employment is reported to have remained stable.
