http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.12Change: 0.04
R/$ = 11.75Change: 0.03
Au 1206.65 $/ozChange: 3.00
Pt 1186.00 $/ozChange: -3.50
 
 
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 Letters 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|Mining|PROJECT|Projects|Road|Roads|Rolling Stock|rolling-stock|South African National Roads Agency Limited|Sustainable|Transnet|Africa|South Africa|Building|Flow|Infrastructure|Norman Milne|Power|Rail|South Africa|Soccer World Cup
Construction|Engineering|Africa|CoAL|Eskom|Flow|Mining|PROJECT|Projects|Road|Roads|Rolling Stock|rolling-stock|Sustainable|Transnet|Africa||Building|Flow|Infrastructure|Power|Rail||
construction|engineering|africa-company|coal|eskom|flow-company|mining|project|projects|road|roads|rolling-stock|rolling stock|south-african-national-roads-agency-limited|sustainable|transnet|africa|south-africa|building|flow-industry-term|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 Construction News
The Development Bank of Southern Africa (DBSA), through its Infrastructure Delivery division, has signed memorandums of agreement with the South African Federation of Civil Engineering Contractors (Safcec) and the Black Business Council Built Environment (BBCBE) to...
Finance MEC Barbara Creecy
The Gauteng government has set aside R10-billion of its R95.3-billion 2015/16 budget to fund its five development corridors, which are being pursued across the so-called ‘City Region’. Gauteng, which is South Africa’s smallest province by area, is also the country...
Finance Minister Nhlanhla Nene
Finance Minister Nhlanhla Nene has acknowledged that South Africa requires “much higher levels of economic growth” to address unemployment and poverty. He also stresses that any economic expansion would need to be supported by the accelerated implementation of the...
Article contains comments
Article contains comments
More
 
 
Latest News
Transport equipment manufacturer GE Transportation has appointed Thomas Konditi as the head of its sub-Saharan Africa division. Konditi, who would be based in Johannesburg, was most recently COO of GE Africa, in Nairobi. His responsibilities included the oversight of...
Trade union Solidarity has criticised the Nuclear Energy Corporation of South Africa (Necsa) for continuing with a restructuring process, which the union claims results in employees being demoted, without consulting with Solidarity about the process. Solidarity...
FMCSA president and CEO Jeff Nemeth
South Africa’s Automotive Production and Development Programme (APDP) had boosted Ford Motor Company of Southern Africa’s (FMCSA’s) manufacturing competiveness, the vehicle manufacturer said on Tuesday. The Department of Trade and Industry (DTI) had introduced the...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
 
 
 
 
 
This Week's Magazine
Walter Hill
Eqstra Holdings was going to reduce its exposure to contract mining, but it was not yet ready to sell the troubled business, said CEO Walter Hill on Tuesday. He said Eqstra would not sell its contract mining business in a “depressed market”. He said it would be...
Subscribe to Engineering News and Mining Weekly for two years, but only pay for the first year.  The weekly editions of Engineering News and Mining Weekly will be posted to your preferred postal address and also gain access to:
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96