From a bustling landscape where food, textiles, and jewels once crafted a $3.5 billion economic pillar, Lebanon's industrial sector now tells a story of resilience and staggering loss, offering a crucial window into the nation's ongoing battle for recovery.
Key Takeaways
- Lebanon's manufacturing sector accounted for 7.2% of GDP in 2019 before the economic crisis, producing goods worth $3.5 billion annually.
- There are approximately 1,200 registered manufacturing enterprises in Lebanon, with 80% being small and medium-sized enterprises (SMEs).
- Food and beverage manufacturing represents 28% of total industrial output in Lebanon, generating $1.2 billion in 2021.
- Construction sector in Lebanon contracted by 65% from 2019 to 2023 due to economic meltdown.
- Annual construction investment peaked at $4.5 billion in 2018, dropping to $1 billion by 2022.
- There are over 10,000 registered construction companies in Lebanon, 90% SMEs.
- Electricity generation capacity in Lebanon is 2,800 MW installed, but only 1,500 MW effective due to fuel shortages in 2023.
- Electricite du Liban (EDL) produces 40% of electricity from thermal plants, 10% hydro, rest from private generators.
- Daily electricity demand peaks at 3,500 MW, with average supply at 1,800 MW in 2022.
- Lebanon's industrial sector employed 150,000 workers in 2019, dropping to 80,000 by 2023.
- Manufacturing jobs represent 45% of total industrial employment, about 67,500 pre-crisis.
- Construction labor force numbered 200,000 in 2018, with 70% informal workers.
- Industrial GDP contribution averaged 12% from 2010-2019.
- Manufacturing value added per capita $450 in 2019, down 80% by 2023.
- Construction value added 8% of GDP in 2018, contracted to 2%.
Lebanon's diverse manufacturing and construction sectors have collapsed since the economic crisis began.
Construction
- Construction sector in Lebanon contracted by 65% from 2019 to 2023 due to economic meltdown.
- Annual construction investment peaked at $4.5 billion in 2018, dropping to $1 billion by 2022.
- There are over 10,000 registered construction companies in Lebanon, 90% SMEs.
- Building permits issued fell from 25,000 in 2018 to 3,500 in 2022, a 86% decline.
- Residential construction accounts for 60% of total sector activity, valued at $2 billion pre-crisis.
- Infrastructure projects, including roads and bridges, total 500 km under construction in 2023.
- Cement consumption in construction dropped from 4.5 million tons in 2019 to 1.2 million in 2023.
- Steel imports for construction reached 800,000 tons annually before 2019 crisis.
- Public construction spending was 5% of GDP in 2017, falling to under 1% by 2022.
- Beirut port reconstruction estimated at $1.5 billion post-2020 explosion, 40% complete by 2024.
- Hotel construction projects number 50, with 10,000 new rooms planned pre-crisis.
- Road construction and maintenance budget was $300 million yearly until 2019.
- Number of construction workers peaked at 250,000 in 2018, halved by 2023.
- Commercial building completions averaged 200 per year from 2015-2019.
- Water infrastructure construction includes 200 km of new pipelines built 2010-2020.
- Electricity grid upgrades involve 500 substations modernized since 2015.
- Waste management facilities construction: 5 new landfills planned, 2 operational by 2023.
- Airport expansion at Beirut Rafic Hariri includes new terminal for 20 million passengers.
- Housing units constructed annually averaged 15,000 from 2010-2018.
- Quarrying sites for construction aggregates number 150, producing 10 million tons yearly.
- Dam construction projects like Bisri valley dam halted, costing $500 million invested.
- Sewerage network expansion covers 70% of urban areas, 1,000 km built post-2000.
- Industrial zone construction in Tripoli includes 200 factories built 2015-2022.
- Hospital construction: 10 new facilities added since 2010, 2,000 beds capacity.
- School buildings renovated or built: 1,500 projects funded by international aid.
- Beirut reconstruction post-explosion: 6,000 buildings damaged, $3 billion needed.
- Fiber optic cable laying for telecom construction: 5,000 km nationwide by 2023.
- Renewable energy plants construction: 5 solar farms with 100 MW capacity built.
Construction Interpretation
The once-thriving heartbeat of Lebanon's economy—construction—has been tragically reduced to a faint murmur, with its pulse rate of building permits, cement, and workers' livelihoods crashing by over 65% as the nation's foundations crumbled.
Economic
- Industrial GDP contribution averaged 12% from 2010-2019.
- Manufacturing value added per capita $450 in 2019, down 80% by 2023.
- Construction value added 8% of GDP in 2018, contracted to 2%.
- Industrial production index fell 35% year-on-year in 2022.
- Exports from industry $2.5 billion in 2019, mostly jewels and chemicals.
- Capacity utilization in factories averaged 60% pre-crisis, 30% now.
- Industrial imports $10 billion annually pre-2019, dominated by machinery.
- Investment in industry FDI $500 million yearly until 2018.
- Productivity growth in industry -5% average 2015-2022.
- R&D spending in industry 0.2% of GDP, mostly private.
- Number of industrial establishments 5,000 total, 1,000 exporters.
- Sectoral output growth manufacturing -20% in 2020.
- Contribution to non-oil exports: industry 70%.
- Electricity costs to industry 40% of production expenses.
- SME contribution to industrial GDP 85%.
- Trade balance for industrial goods deficit $7 billion in 2019.
- Inflation impact on industrial prices 200% cumulative 2019-2023.
- Government subsidies to industry $200 million yearly pre-crisis.
- Competitiveness index for industry ranked 80th globally in 2019.
- Value chain integration: 40% local content in manufacturing.
- Digital adoption in industry 25% factories automated.
- Post-explosion industrial recovery $800 million damages in Beirut zone.
Economic Interpretation
The statistics paint a picture of an industrial sector that was already limping along on a diet of ambition and imported machinery before being shoved down the stairs by multiple crises, though it gamely clings to its jewel-encrusted crutch as the nation's primary non-oil exporter.
Employment
- Lebanon's industrial sector employed 150,000 workers in 2019, dropping to 80,000 by 2023.
- Manufacturing jobs represent 45% of total industrial employment, about 67,500 pre-crisis.
- Construction labor force numbered 200,000 in 2018, with 70% informal workers.
- Female participation in industrial jobs is 25%, mostly in textiles and food processing.
- Youth unemployment in industry sectors reached 40% by 2022.
- Average industrial wage was $800 monthly in 2019, devalued to $100 equivalent by 2023.
- Skilled worker shortage in manufacturing: 30% of positions unfilled due to emigration.
- Vocational training programs trained 10,000 industrial workers annually pre-crisis.
- Migrant workers in construction: 50,000 Syrians and others filling labor gaps.
- Labor productivity in industry declined 60% from 2018 to 2023.
- Union membership in industrial sectors covers 20% of workforce.
- Energy sector employs 12,000, mostly in EDL and private generators.
- Apprenticeships in manufacturing: 5,000 youths trained yearly by chambers.
- Industrial accidents reported: 1,200 cases annually, 10% fatal.
- Part-time industrial employment rose to 35% post-2019 crisis.
- Engineer density in construction: 1 per 100 workers.
- Food processing jobs: 30,000 workers in 500 plants.
- Textile sector laid off 10,000 workers since 2019.
- Remote work adoption in industry low at 5%, mostly admin roles.
- Gig economy workers in construction platforms: 20,000 registered.
- Minimum wage for industrial workers set at LBP 1 million monthly, worthless post-devaluation.
- Turnover rate in manufacturing 25% annually due to crisis.
- Disability employment quota in industry: 3% unfilled.
Employment Interpretation
Lebanon's industrial sector has crumbled from a state of dignified employment into a patchwork of informal, dangerous, and shockingly undervalued labor, where the only thing declining faster than the currency is the hope of rebuilding a functioning economy.
Energy
- Electricity generation capacity in Lebanon is 2,800 MW installed, but only 1,500 MW effective due to fuel shortages in 2023.
- Electricite du Liban (EDL) produces 40% of electricity from thermal plants, 10% hydro, rest from private generators.
- Daily electricity demand peaks at 3,500 MW, with average supply at 1,800 MW in 2022.
- Fuel oil consumption for power generation was 2.5 million tons in 2019, down 70% by 2023.
- Renewable energy share in total production is 15%, targeting 30% by 2030.
- Solar PV installations reached 150 MW cumulative by 2023, up from 20 MW in 2019.
- Wind power potential estimated at 2.2 GW, with 1 pilot farm of 3.8 MW operational.
- Natural gas reserves offshore estimated at 25 trillion cubic feet in Block 4.
- Diesel generator market supplies 60% of electricity, costing households $2.5 billion yearly.
- Household electricity consumption averages 3,500 kWh per capita annually pre-crisis.
- Industrial electricity use dropped 50% from 2019 to 2023 due to rationing.
- Zahrani power plant capacity 650 MW, Jiyeh 470 MW, Baalbeck 240 MW thermal.
- Hydroelectric production from 22 dams averages 300 GWh yearly.
- Energy imports cost $5 billion in 2018, 25% of GDP.
- LPG consumption 500,000 tons annually, mostly imported.
- Energy efficiency programs saved 100 MW through LED lighting retrofits by 2022.
- Smart meters installed: 100,000 in pilot phase for better grid management.
- Oil refining capacity at Zahrani refinery is 25,000 barrels per day.
- Electricity tariffs average 10 cents/kWh, subsidized pre-crisis.
- Blackout duration averages 22 hours/day in 2023 for most areas.
- Biomass energy potential from agricultural waste: 50 MW feasible.
- Gas-to-power projects with Qatar planned for 700 MW by 2025.
- Water production capacity 1.2 million cubic meters per day from 700 wells.
Energy Interpretation
Lebanon's energy sector is a tragic comedy where the script calls for a grand performance of 3,500 MW, but the cast—a hobbled state grid and a chorus of expensive, fuming private generators—can only muster a disappointing 1,800 MW, leaving the entire nation sitting in the dark and paying for the spotlight.
Manufacturing
- Lebanon's manufacturing sector accounted for 7.2% of GDP in 2019 before the economic crisis, producing goods worth $3.5 billion annually.
- There are approximately 1,200 registered manufacturing enterprises in Lebanon, with 80% being small and medium-sized enterprises (SMEs).
- Food and beverage manufacturing represents 28% of total industrial output in Lebanon, generating $1.2 billion in 2021.
- Textile and apparel manufacturing employs 15,000 workers and exports $250 million worth of products yearly as of 2022.
- Chemical products manufacturing, including pharmaceuticals, contributes 12% to industrial value added, valued at $450 million in 2020.
- Metal products and machinery manufacturing sector saw a 15% decline in production from 2018 to 2022 due to economic crisis.
- Paper and wood products manufacturing output dropped 40% between 2019 and 2023, from $150 million to $90 million.
- Plastic products manufacturing, a key subsector, produces 200,000 tons annually with 500 factories operating.
- Furniture manufacturing in Lebanon has 300 workshops employing 5,000 artisans, exporting $50 million yearly.
- Tobacco manufacturing, dominated by two major factories, produces 25 billion cigarettes annually valued at $300 million.
- Jewelry manufacturing sector crafts gold and silver products worth $400 million in exports pre-2019.
- Pharmaceutical manufacturing meets 55% of domestic demand, with 28 factories producing 250 million units yearly.
- Cement manufacturing capacity stands at 5.5 million tons per year from four main plants.
- Glass manufacturing produces 120,000 tons of flat and container glass annually from two facilities.
- Soap and detergent manufacturing output reached 50,000 tons in 2022, with exports to 20 Arab countries.
- Leather goods manufacturing employs 2,000 workers in 150 tanneries producing $80 million in products.
- Electrical appliances manufacturing includes assembly of 100,000 refrigerators and AC units per year.
- Printing and publishing industry prints 1 billion pages annually from 400 presses in Lebanon.
- Rubber products manufacturing produces 30,000 tons of tires and hoses for local automotive market.
- Non-metallic mineral products manufacturing contributes 18% to industrial GDP, valued at $600 million.
- Automotive parts manufacturing supports 50 assembly plants with $150 million in components yearly.
- Dairy processing plants handle 500,000 liters of milk daily, producing $200 million in cheeses.
- Olive oil manufacturing yields 20,000 tons annually from 150 mills, exporting to Europe.
- Confectionery manufacturing produces 50,000 tons of sweets, with 200 factories operating nationwide.
- Beverage manufacturing, including beer and soft drinks, generates $350 million in sales yearly.
- Footwear manufacturing sector has 100 factories producing 5 million pairs annually for export.
- Ceramic tiles production reaches 15 million square meters from three major plants in 2022.
- Paints and varnishes manufacturing output is 40,000 tons per year from 50 companies.
- Canning industry processes 100,000 tons of fruits and vegetables annually for export.
- Ready-made garments manufacturing employs 25,000 workers, exporting $300 million pre-crisis.
Manufacturing Interpretation
Lebanon's manufacturing sector is a stubborn, fragmented mosaic where food and textiles form the resilient heart, while many other tiles—from metal to wood—have been cracked or dislodged by the crisis, yet it still clings to the wall with artisan hands and pharmaceutical glue.
Sources & References
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