Jul 12, 2012
Civil engineering showing signs of life, but Safcec warns on response rateBack
© Reuse this
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
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Economy News
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.