http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.47Change: -0.03
R/$ = 13.85Change: -0.01
Au 1121.72 $/ozChange: 0.95
Pt 991.50 $/ozChange: 0.50
 
 
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  
 
 
Aug 01, 2008

Engineering, construction industry grows despite global market volatility

Back
Graham Pirie South African Association of Consulting Engineers CEO discusses the role that Government can play in the engineering industry (08/07/2008)
 
 
 
Construction|Engineering|Africa|Building|Civils|Consulting|Education|Road|Roads|Training|Africa|Angola|Steel|Consulting Engineers|Infrastructure
Construction|Engineering|Africa|Building|Civils|Consulting|Education|Road|Roads|Training|Africa|Angola|Steel|Consulting Engineers|Infrastructure
construction|engineering|africa-company|building|civils|consulting-company|education-company|road|roads|training|africa|angola|steel|consulting-engineers|infrastructure
© Reuse this



The current growth in the local and international engineering, civils and construction markets is expected to continue despite the current volatility experi- enced in world economic markets, reports the South African Association of Consulting Engineers (Saace).

Saace CEO Graham Pirie says that even though the local infrastructure roll-out programme and the infrastructure investments from emerging markets such as China were initiated before the period of global market volatility, infrastructure builds cannot be halted as they are vital to the economic growth of countries.

“Government’s commitment of R500-bil-lion, in addition to the money invested in the 2010 FIFA World Cup stadiums, to be spent over three years, means that 2010 is a small component of a larger investment that government is encouraging,” says Pirie.

He comments that the infrastructure roll-out programme is necessary, given the 20-year infrastructure investment backlog that South Africa needs to resolve.

Pirie says that events hosted in the country since 1994 have encouraged infrastructure reinvestment. “Prior to 1994, South Africa didn’t host sporting or political events that would draw an influx of tourists into the country, so the need for infrastructure reinvestment was minimal. “From 1994, with the 1995 rugby World Cup looming, government got serious about resolving this. Certain sporting events, such as the 1995 rugby World Cup, the 2003 cricket World Cup and the 2010 soccer World Cup, focus the right amount of attention on infras- tructure reinvestment at the right time,” says Pirie.

Industry Challenges
Although there is considerable focus on reinvestment in infrastructure, Pirie notes that there are significant industry challenges that must be overcome.

The foremost challenge is the skills crisis. “Because of the 20-year backlog of noninvestment, there was very little focus on building the country’s skills base. “South Africa started to feel the effects in 2005, but the real effects of the crisis are being felt now. Companies are realising that they have to work smarter in order to survive,” says Pirie.

There are a number of initiatives being rolled out to decrease the effects of the skills crisis. Pirie reports that one such initiative is the promotion of engineering as a lucrative career to pursue. “This is predominantly being promoted through the Young Engineers Forum, which is a forum made up of engineers between the ages of 20 and 35. “The Young Engineers Forum visits schools, promoting the selection of engineering as a career path,” says Pirie. He adds that, in the interim, South Africa is importing skills and enticing engineers out of retirement.

In addition, Pirie reports that the 470 Saace member companies currently contribute about R100-million a year towards education and training. Pirie further adds that, should government reinstate bursaries for study towards a career in the public sector, the skills crisis will improve considerably.

International sustainability
In spite of the volatility in the US market and the price of crude oil, the infrastructure expansion in emerging markets is moving ahead at a rapid pace.

Estimations show that China’s consumption of steel, a key component in international infrastructure expansion programmes, will grow by 11,5% in 2008 and a further 10% in 2009, accounting for 35% of the world total in 2008. This is expected to reach 36,7% of world total by 2009. Indian steel forecasts show that apparent steel use will increase by 8,9% this year and a further 12,1% in 2009.

China and India are following the lead of the United Arab Emirates, a country that has seen a plethora of infrastructure expansion initiatives since 2000.

Pirie says that the quality of South African training and education in the past has placed South African consulting engineers and construction firms in high demand oversees.

African Expansion
Pirie says that although there is a large focus on developing emerging markets, such as China and India, it does not mean that there no companies interested in developing African markets.

Pirie reports that there has been a significant amount of capital investment in Africa, which is helping to drive infrastructure reinvestment on the continent. “One has to look at Mozambique and Angola and the transformation in those countries after the attainment of relative political stability,” says Pirie.

“Political stability plays an important role in infrastructure investment. “There is a feeling in the industry that if Zimbabwe can attain political stability, there will be a significant amount of post conflict reconstruction, which will present many opportunities to companies in that market,” says Pirie.

He adds that, in the past, companies found it easy to go into Africa and set up businesses, but found it difficult to move around Africa owing to inadequate road infrastructure.

Pirie says that one has to commend the efforts of the New Partnership for Africa’s Development (Nepad) for promoting interconnectivity within Africa.

“Nepad has done a significant amount of work in improving the state of the roads and related infrastructure so that companies operating in Africa are able to do so without any constraints,” concludes Pirie.

 

Edited by: Laura Tyrer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Consulting Engineers News
GARY THEODOSIOU It is important for consulting engineers to fully grasp concrete and how it works
Qualified and experienced consulting engineers are one of the primary target audiences for the Advanced Concrete Technology (ACT) course offered by the School of Concrete Technology, as the knowledge gained from the course could help an engineer at the design stage...
ANDRE VAN DER WALT SMEC South Africa is confident that the market in Africa will continue to grow, with many projects ready to get under way
There are abundant project opportunities for consulting engineers in Africa, as many countries on the continent are embarking on power generation infrastructure development projects, says multinational consulting engineering firm SMEC South Africa (SMEC SA), which...
Consulting engineering firms are providing inferior, lower-quality services and completing projects over longer timeframes than necessary, owing to broad-based black economic-empowerment (BBBEE) compliance requirements, states midtier consulting engineering firm...
More
 
 
Latest News
Driving the Gauteng Department of Economic Development’s (DED’s) mandate of township revitalisation, MEC for Economic Development, Environment, Agriculture and Rural Development Lebogang Maile reported on Friday that the department had provided financial support to...
Terence Goodlace
Platinum mining and refining company Impala Platinum (Implats) is providing technical support to the South African Mint on the development of a platinum coin and, in a separate initiative, on the feasibility of platinum being held as a reserve asset by the South...
MEC Sakhumzi Somyo
The R2-billion Kouga wind farm, located at Oyster Bay in the Eastern Cape, was officially opened on Friday by Economic Development, Environmental Affairs and Tourism MEC Sakhumzi Somyo. The power plant, which entered commercial operations earlier this year,...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
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.
 
 
 
 
 
This Week's Magazine
The Health and Welfare Sector Education and Training Authority (HWSETA) has joined forces with Tshwane North Technical, Vocational and Education and Training College (TNC) to train 100 young unemployed learners as artisans, and marked this with an event that took...
JAMES TEMPLETON The increase in distribution is as a result of Emira’s acquisitive growth
JSE-listed Emira Property Fund reported distributions per participatory interest (PI) of 134.27 c – a distribution growth of 9% – for the 12 months to June 20, 2015.
Earlier this month ground broke on South Africa’s latest four star green building – the first of its kind in the Eastern Cape. The modern three-storey office block is located within the Baywest City precinct in Port Elizabeth’s western suburbs, along the N2, and...
South African armoured and mine protected vehicles company Denel Vehicle Systems (DVS) has won its first order since becoming part of the Denel group at the end of April. "It's a sizeable contract," reports DVS CEO Johan Steyn. "We won the contract in July. It's a...
South African guided weapons, unmanned air vehicles (UAVs) and space company Denel Dynamics plans to increase its revenues to more than R2-billion within five years. This was reported by company CEO Tsepo Monaheng at its annual "Show and Tell" briefing in Centurion,...
 
 
 
 
 
 
 
 
 
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