http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.82Change: 0.02
R/$ = 11.02Change: -0.07
Au 1171.73 $/ozChange: -28.49
Pt 1231.00 $/ozChange: -15.00
 
 
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 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.
Aspen Pharmacare|Industrial|South Africans|Manufacturing|Manufacturing Output|Manufacturing Sales|Pharmaceuticals|Products|Services|Steel|Stavros Nicolaou|Stewart Jennings
Industrial||Manufacturing|Products|Services|Steel|
aspen-pharmacare|industrial|south-africans|manufacturing|manufacturing-output|manufacturing-sales|pharmaceuticals|products|services|steel|stavros-nicolaou|stewart-jennings
© 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
Updated 3 hours ago While South Africa may have the strongest reputation in Africa, the nation needed to enhance harmony with the continent’s other inhabitants to further spread the benefits of the “Africa rising” trend through boosting regional trade. Brand South Africa (SA) had been...
Rosatom VP: sub-Saharan Africa Viktor Polikarpov
Updated 5 hours ago Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
More
 
 
Latest News
Updated 2 hours 32 minutes ago The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Updated 2 hours 47 minutes ago Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
Updated 3 hours ago The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
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
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
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