http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.02Change: -0.01
R/$ = 10.67Change: -0.05
Au 1287.80 $/ozChange: 0.30
Pt 1424.00 $/ozChange: -2.00
 
 
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  
 
 
Jul 12, 2012

Civil engineering showing signs of life, but Safcec warns on response rate

Back
Engineering|Africa|Projects|Africa|South Africa|Product
Engineering|Africa|Projects|Africa||
engineering|africa-company|projects|africa|south-africa|product
© Reuse this



South Africa’s civil engineering sector, which has been experiencing difficult conditions since 2010, is showing signs of recovery, with turnover having increase 28% in real terms during the first quarter of 2012 when compared with the corresponding period last year.

The latest South African Federation of Civil Engineering Contractors (Safcec) industry update for the first quarter of 2012, shows that turnover also increased by about 12% quarter-on-quarter, which, in nominal terms, translated to R11.3-billion from R10.1-billion in the last quarter of 2011.

Order books benefited from improved contract-award activity in 2011, fewer civil projects have been postponed, the outlook for input costs is favourable for the next two quarters and companies are increasingly satisfied with the rate at which contracts were being awarded.

But the ‘State of the Industry: Second quarter 2012’ report also warns that confidence, which improved marginally in the first quarter, remains fragile, while tenders during the quarter disappointed, following several quarters of positive growth.

Nevertheless, most respondents are satisfied with the current tempo of activity, and an increasing number of Safcec-affiliated firms are also forecasting a “busy” third quarter.

For this reason, Safcec believes the worst may “finally be over” for the industry, which has endured a protracted period of contraction, resulting in major job losses.

Employment (excluding subcontractors) is still lower, at 98 837, than it was during the first quarter of 2011 and is well off the 2008 high of nearly 200 000 – a time when investment in South Africa as a percentage of gross domestic product peaked at 22.7%, having fallen to 12.3% in 1992.

The report says 44% of firms are indicating that they are considering hiring in the next quarter.

Safcec is concerned, however, about what it describes as a poor response rate from the industry to market studies and surveys, which it says will undermine informed decision-making by industry stakeholders and policymakers.

“Without support from individual players, industry representatives are not able to form a ‘unified’ opinion and the ‘outlook’ for the sector will become fragmented rendering stakeholders paralysed in their attempts to act for the better of the future of the industry,” the national employers’ organization, formed in 1939, cautions.

Resistance to sharing market-related information (within the boundaries of what is allowed by the Competition Commission) seems to have “become and industry-wide cancer”, Safcec laments.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Science and Technology Minister Naledi Pandor
Updated 56 minutes ago South Africa did not produce enough graduate engineers, which was worrying, as good engineering made a significant contribution to social welfare, Science and Technology Minister Naledi Pandor said on Monday. Speaking at the official opening the United Nations...
Telecommunications and Postal Services Minister Dr Siyabonga Cwele
Updated 2 hours 8 minutes ago As South Africa entered the “spring” of its ambitious South Africa (SA) Connect broadband strategy, Telecommunications and Postal Services Minister Dr Siyabonga Cwele on Monday assured stakeholders that South Africa’s information and communication technology...
Updated 2 hours 21 minutes ago South African utility Eskom said on Monday that a report in a business newspaper that power supply would be "highly constrained" for the next five years was a "worst-case scenario." "It would not be correct to say categorically that it would take five years. That is...
More
 
 
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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