http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.53Change: 0.03
R/$ = 12.21Change: -0.05
Au 1169.20 $/ozChange: -5.31
Pt 1079.50 $/ozChange: 0.00
 
 
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  
 
 
Sep 19, 2012

Engineers see too few signs of SA’s infrastructure promise

Back
Construction|Engineering|Africa|Consulting|Environment|PROJECT|transport|Water|Africa|South Africa|Contracting|Water Infrastructure|Consulting Engineers|Graham Pirie|Infrastructure|Power|Water|South Africa
Construction|Engineering|Africa|Consulting|Environment|PROJECT|transport|Water|Africa||Contracting||Consulting Engineers|Infrastructure|Power|Water|
construction|engineering|africa-company|consulting-company|environment|project|transport|water-company|africa|south-africa|contracting|water-infrastructure|consulting-engineers|graham-pirie|infrastructure|power|water|south-africa-region
© Reuse this



Capacity utilisation levels in South Africa’s consulting engineering industry dipped to 89.1% in the first six months of 2012, from an average utilisation rate of 90.9% in December 2011, Consulting Engineers South Africa’s (Cesa’s) bi-annual economic and capacity survey shows.

It also indicated that 63% of its 480 member firms expect capacity utilisation rates to remain unchanged for the coming six months, owing partly to a slower-than-expected pick up in public-sector workflow.

The South African government has indicated that it and its State-owned companies (SoCs) plan to invest about R860-billion on power, transport and water infrastructure over the three years from April 1, 2012 to March 31, 2015.

But while the South African Reserve Bank’s September Quarterly Bulletin showed a pick up in gross fixed expenditure to 5.7% as compared with 5.3% in the first quarter and 4.8% for 2011, the domestic construction sector continued to describe the environment as being weak.

As with the construction majors, Cesa members were, therefore, “looking north for work across our borders”, CEO Graham Pirie said.

The latest survey confirmed that the “industry is not firing on all cylinders”, that “government is not spending” and that “although there appears to be a lot of planning taking place the physical manifestation is just not happening”.

Conditions in the first six months of 2012 had been more difficult than expected, despite the fact that most of the larger firms had been busy during the period.

Fee income increased by 12% to an estimated R20-billion in the first six months of 2012, which was in line with expectations.

About 9.4% of fee earnings were outstanding for longer than 90 days, compared to 24% in December 2011 and 18% in the June 2011 survey. “This is the lowest rate since the December 2002 survey,” Pirie said, but still translated to an estimated R1.9-billion in outstanding fee earnings.

Overall confidence in the industry fell by 6.4% to 81.8 as at June 2012, from 87.4 in the last six months of 2011, but Pirie said firms were bullish that conditions would improve in the next 6 to 12 months.

Project postponements and delays in project implementation affected confidence in the contracting fraternity. Civil contracting confidence improved marginally to 34 and 38 in the first two quarters of 2012, but is still well below levels experienced between 2005 and 2008.

Cesa members indicated that unlocking greater private sector participation could be a critical element to fast-track and improve delivery.

The contribution by the private sector fell to 34.3% in the June 2012 survey, down from an average of 44.8% in 2011. Pirie said it was the lowest contribution by the private sector since 2005.

The contribution of SoCs improved to 20.5%, from an average of 13% in 2011, while the provincial government contribution rose to 14.3%, from an average of 9.7% in 2011.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Expelled Cosatu general secretary Zwelinzima Vavi
Updated 2 hours 53 minutes ago Nine trade unions loyal to expelled Cosatu general secretary Zwelinzima Vavi have decided they will attend the trade union federation's special national congress later this month, although they are not happy with the agenda. "We shall attend and participate in the...
Gauteng Premier David Makhura recommitted the provincial government’s support to the revival of Gauteng’s manufacturing base, telling the second yearly Manufacturing Indaba on Tuesday that policymakers would drive legislation that created an environment in which the...
Home Affairs Minister Malusi Gigaba
The Department of Home Affairs on Tuesday kicked off a two-day colloquium in Pretoria to deliberate on South Africa’s international migration policy. The colloquium is a culmination of the work started by the department last year to undertake a total review of the...
More
 
 
Latest News
Updated 13 minutes ago Property management company Citiq on Wednesday launched its R30-million mall-meets-market shopping centre, 27Boxes. The centre, located in Third avenue, in Melville, was built using 102 shipping containers. It hosted about 80 stores selling clothing, décor and art,...
Updated 15 minutes ago South Africa's new vehicle sales fell by 4.8% year-on-year to 50 251 units in June, data from the trade department showed on Wednesday. Exports however grew 33.8% year-on-year to 31 422 units, the department said.
Updated 1 hour 47 minutes ago The seasonally adjusted manufacturing Purchasing Managers’ Index, compiled by the Bureau for Economic Research (BER), ticked up by 0.6 index points to 51.4 in June. This brought the average for the second quarter to 49.2 index points, slightly below the average of...
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
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
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