23008_Nearshoring Report



• Machinery and electrical & electronic manufacturing has also evolved rapidly in Morocco, particularly as part of the wider network of suppliers to the automotive production sector. European, US, Far Eastern and other foreign investors have continued to invest in production facilities in Morocco as business and opportunities grow. • In terms of key locations , many production facilities making products for export are located in the north of the country, particularly around Casablanca, Tangier and Rabat. The majority of goods being moved from Morocco to Europe are transport by ship and key transport hubs are the ports of Casablanca and Tanger-Med (the largest port in Africa) with gateway

• These countries will also benefit where there is political support for

• Low costs and close proximity, coupled with government initiatives to support foreign direct investment in manufacturing specifically, have seen European and international companies set up operations or contract with suppliers in Morocco. • Automotive manufacturers, particularly from France, have established significant operations over the past 10-15 years and a strong automotive production and engineering ecosystem continues to grow • Apparel production has also attracted engagement by foreign businesses, especially major fashion retailers in Spain, and Moroccan suppliers now form a key part of the strategic sourcing of garments for Western European consumer markets.

• Countries in Western, Southern & Northern Europe continue to attract investment in nearshoring manufacturing where proximity is important – including

encouraging manufacturing investment, particularly in key sectors which help to preserve and enhance technological sovereignty (such as semiconductors) and advance opportunities to meet key strategic goals (such as EV and battery production and renewal energy technologies). Spain appears to be attempting to establish itself as a key location for EV battery production and is allocating funds to create incentives for investment. Other countries seeking to attract automotive manufacturing investment particularly in EV battery and other vehicle technology including the major vehicle producing nations of France, Germany, Italy, the UK and Sweden alongside CEE countries such as Slovakia, Czech Republic and Hungary.

where shorter journey times means shorter order lead times and lower transport costs.

• Portugal and Spain may offer attractive opportunities for businesses, particularly where cost, flexibility and shorter lead and journey times are important, such as in fast fashion, not least because the cost differential to CEE countries and even Asian locations is no longer as large as it has been in the recent past. • Nearshoring will also be attractive where production processes rely on degrees of automation (and are less dependent on (lower cost) labour). Particularly where the cost of investing in automation and technology is high, it may be preferable to locate these investments close by to mitigate other costs (such as transport) and also to maintain closer control and oversight of these facilities.

ports in Spain and France along the Mediterranean and Atlantic coasts.





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