http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.87Change: 0.05
R/$ = 12.65Change: 0.04
Au 1090.80 $/ozChange: -0.65
Pt 957.00 $/ozChange: -9.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 29, 2012

Despite good indicators, Manufacturing Circle still concerned about 2012 prospects

Back
Manufacturing Circle chairperson Stewart Jennings outlines his concerns for the outlook for manufacturing in 2012. Camera Work: Nicholas Boyd. Editing: Shane Williams.
 
 
 
Export|Industrial|Manufacturing|Products|Services|Steel
Export|Industrial|Manufacturing|Products|Services|Steel
export|industrial|manufacturing|products|services|steel
© Reuse this



Notwithstanding a solid rise in manufacturing output and sales in the last quarter of 2011, as well as an improvement in business conditions and confidence levels, the Manufacturing Circle remained concerned about prospects for the sector for the balance of 2012.

Chairperson Stewart Jennings said the prospect for disruptive industrial action was lower than it was in 2011, owing to multiyear wage settlements. But export demand had come under pressure as a result of the recessionary conditions in key European markets, while the resurgent rand would increase the threat of import competition. The South African unit has recovered strongly and was trading at better than R7.50 to the US dollar on Wednesday.

Domestic manufacturers had, thus, become heavily reliant on a continued recovery in domestic demand, which improved markedly in the last quarter of 2011 when compared with the prior quarter of the same year.

The recovery was reflected in the Manufacturing Circle’s latest bulletin, which was compiled by Pan-African Research and Investment Services, based on survey responses from 48 CEOs heading enterprises covering a range of industrial sectors from steel and glass to pharmaceuticals and with revenues of between R300-million and R10-billion.

The proportion of respondents reporting growth in the value of domestic sales increased from about 75% in the third quarter to nearly 92% in the final quarter of 2011. Similarly, about 87% of the respondents realised positive growth in the volume of domestic manufacturing sales in the final quarter of the year.

Most CEOs were also more bullish about the outlook, with the proportion of respondents who felt that business confidence was ‘modest to good’ more than doubling, from 14.6% to 31.3%, in the fourth quarter of 2011.

But Jennings pointed out the sector had slumped materially from a buoyant first quarter and he was worried that a similar pattern could be repeated in 2012, unless action was taken to buoy domestic demand.

The Manufacturing Circle had appointed Stavros Nicolaou, a senior executive at Aspen Pharmacare, to work with government to help ensure that the localisation benefits promised in the revised regulations associated with the Preferential Procurement Policy Framework Act were actually delivered.

“We had a meeting with Trade and Industry [on Tuesday] where we made an appeal for South African and the retail sector to buy South Africans goods,” Jennings said, indicating that the organisation would also be seeking to liaise with the retail sector in a bid to gain its support for South African-made products.

“I’m concerned about this year . . . I don’t think we are out of the woods at all in terms of manufacturing. I think it’s going to be a tough, tough 12 months ahead.”
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Karsten Wellner
Health and care brands group Ascendis Health on Monday announced its first international acquisition – an initial 49% stake in Spanish pharmaceutical group Farmalider for R210-million.
Thuli Madonsela
There have been "defiant trends" against the Public Protector and this is eroding the office's ability to do its job, Thuli Madonsela said on Monday. She told National Assembly Speaker Baleka Mbete, through the media at a briefing in Pretoria, that there was...
Perched on the muddy bank of a river meandering through rolling green hills, the Lemurs' Park near Madagascar's capital is rated one of the city's top attractions, but you would not know it from the number of visitors. On a Saturday in what is meant to be high...
More
 
 
Latest News
Us President Barack Obama
Updated 1 hour 1 minute ago Alpha Natural Resources Inc, one of the largest US coal companies, became the latest in the hard-hit industry to seek bankruptcy on Monday. The move comes as President Barack Obama is expected to unveil tough new measures to cut greenhouse gas emissions from...
Coal mine into business rescue
Updated 1 hour 11 minutes ago Business rescue proceedings are to begin at both Optimum Coal Holdings and Optimum Coal Mine after attempts to renegotiate a 22-year-old lossmaking supply agreement with Eskom ended in the State electricity utility asserting its rights to past and future penalty...
Updated 1 hour 44 minutes ago The ailing Free State dairy industry received a breather from a milk broker who agreed to buy from regional farmers, following the closure of the 27-year-old Montic Clocolan milk depot. Martin Swanepoel, CEO of Montic holding company Sontic, told Fin24 that the...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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