http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.74Change: 0.09
R/$ = 10.96Change: 0.07
Au 1190.33 $/ozChange: 9.79
Pt 1205.50 $/ozChange: 16.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 04, 2013

Civil engineering industry on road to recovery, wage talks looming in June

Back
Construction|Engineering|Africa|CoAL|Eskom|Flow|PROJECT|Projects|Road|Roads|South African National Roads Agency Limited|Transnet|Africa|South Africa|Building|Flow|Mining|Infrastructure|Norman Milne|Power|Rail|South Africa|Soccer World Cup
Construction|Engineering|Africa|CoAL|Eskom|Flow|PROJECT|Projects|Road|Roads|Transnet|Africa||Building|Flow|Mining|Infrastructure|Power|Rail||
construction|engineering|africa-company|coal|eskom|flow-company|project|projects|road|roads|south-african-national-roads-agency-limited|transnet|africa|south-africa|building|flow-industry-term|mining|infrastructure|norman-milne|power|rail|south-africa-region|soccer-world-cup
© Reuse this



The South African Federation of Civil Engineering Contractors’ (Safcec’s) latest Economics Report shows that the South African civil engineering industry could achieve a nominal turnover of around R50-billion this year, the biggest since the heady days of 2008 and 2009, says Safcec president Norman Milne.

“The recovery we have seen in the industry from the third quarter of 2009, when the market bottomed out, is continuing.”

Nominal turnover in the civil engineering industry reached R8.6-billion in 2000, climbing steadily to R58-billion in 2008, and then declining sharply to R32-billion in 2010, following the global recession and the completion of the many FIFA Soccer World Cup projects ahead of the 2010 event.

Employment in the industry has not shown the same degree of recovery, however. Peaking at 174 927 people in 2009, it has dropped to 105 522 in the third quarter of 2012. However, this is up on the 98 837 people employed by the sector in the first quarter of last year.

Milne says 2012 was a year that produced “more of the same” for the South African civil engineering industry.

“It was very mixed in terms of our members, with the bigger companies doing reasonably well, as they had managed to secure a significant portion of their order books outside South Africa.”

However, notes Milne, medium and small companies continued their financial struggle, hindered by unsuccessful project implementation at local and provincial government level.

“These companies are especially reliant on these levels of government to provide them with work.”

Milne says much of the recovery seen in the civil engineering industry has come from increased spend by State-owned enterprises such as Eskom, Transnet and, to a lesser extent, the Passenger Rail Agency of South Africa (Prasa).

“Prasa is not only buying rolling stock, but also refurbishing its stations. The South African National Roads Agency Limited is also seeing more and more roads returned to it from provincial governments.”

Milne says he is hopeful the recovery seen to date can be sustained at a steady speed, especially as government fast-tracks the roll-out of its eighteen proposed strategic infrastructure projects, or Sips. The framework provided by the National Development Plan, approved by Cabinet, will also assist.

A stop-start project flow, as often seen in the past in South Africa, has been the culprit in the massive job losses, largely of unskilled staff, seen in the industry, says Milne.

“This feast-famine project situation is not beneficial to the country. Our biggest challenge in this industry is to ensure a steady flow of projects, so that people can migrate from one project to the next, creating sustainable employment and the continual improvement of skills.

“We all need to work together, to understand how we can best roll-out the projects government requires and provide certainty of delivery.”

Labour Negotiations Coming in 2013
One of the other, newer challenges facing the industry in 2013 is the labour unrest seen in the local mining sector, which has already affected civil engineering project flow from this sector of the economy.

“Mines are a significant source of work for our members. We are concerned about the current situation, as mines are cutting back their capital expenditure. Hopefully the Sips can fill the gap now left by the mines, while Eskom also has to start thinking beyond the Kusile and Medupi coal-fired power stations they are currently building," says Milne.

The civil engineering industry will also this year for the first time enter into wage negotiations within a new bargaining council structure.

The Bargaining Council for the Civil Engineering Industry was registered in December last year.

The council comprises of Safcec, as the national registered employer’s organisation for the civil engineering industry, together with the National Union of Mineworkers and the Building Construction and Allied Workers Union.

“We have no doubt that other unions will look to become part of the council. In the light of the current labour situation, negotiations are going to be challenging,” notes Milne. “The precedent created at the mines is quite worrying.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Infrastructure News
Updated 5 hours ago There were signs of progress this week on the long-awaited Tripartite Free Trade Agreement (T-FTA), which has been under discussion between the Common Market of Eastern and Southern Africa, the East African Community and the Southern African Development Community...
Updated 5 hours ago The Competition Commission would refer a case against Isipani Construction to the Competition Tribunal for its alleged involvement in collusive tendering for the building of the 2010 FIFA World Cup stadia. This followed an investigation of the firms that did not...
Professor John Briscoe receiving the 2014 Stockholm Water Prize from King Carl XVI Gustaf
World-renowned South African water engineer and academic Professor John Briscoe, who was the 2014 recipient of the Stockholm Water Prize, also known as the ‘Nobel prize for water’, has died at the age of 66. Following a two-and-a-half-year battle with cancer, he...
More
 
 
Latest News
Updated 5 hours ago There were signs of progress this week on the long-awaited Tripartite Free Trade Agreement (T-FTA), which has been under discussion between the Common Market of Eastern and Southern Africa, the East African Community and the Southern African Development Community...
Majuba power station
Updated 5 hours ago Nearly a month after the catastrophic failure of the 10 000 t central coal-storage silo at its Majuba power plant, State-owned power utility Eskom could face the collapse of another silo if urgent action is not taken, Solidarity claimed on Thursday. The...
Updated 5 hours ago The Competition Commission would refer a case against Isipani Construction to the Competition Tribunal for its alleged involvement in collusive tendering for the building of the 2010 FIFA World Cup stadia. This followed an investigation of the firms that did not...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Renault Trucks Southern Africa (RTSA) has a 2% share of the local truck market, but would like to grow this to 5%, says Renault Trucks Commercial GM Herman Venter. RTSA expects to sell around 300 trucks this year, with Venter hopeful of pushing this to 400 units in...
The future of manufacturing in South Africa lay in the country’s ability to become a stable business destination, globally competitive and beneficiate locally produced products, said Manufacturing Circle executive director Coenraad Bezuidenhoudt at multinational...
Babcock, sole importer and distributor of DAF trucks in Southern Africa, has established Babcock Financial Services (BFS), with the purpose of providing finance solutions to DAF truck buyers. Babcock Africa Transport Solutions CEO Wilna Steyn believes this move will...
Banks are increasingly using biometrics security checks in their branches and as additional verification methods. However, ubiquitous use of smart devices is required to provide the required broad base for biometric verifications to be used during mobile banking...
Major US aerospace group Boeing is continuing to strengthen its cooperation with South African companies and institutions. “We already have strong relationships with Aerosud, with Cobham Aviation (wi-fi antennas) and with 43 Air School,” points out Boeing Commercial...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks