http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.98Change: 0.00
R/$ = 15.89Change: -0.08
Au 1246.04 $/ozChange: -7.71
Pt 961.00 $/ozChange: -1.50
 
 
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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 19, 2012

Engineers see too few signs of SA’s infrastructure promise

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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
THIERRY BERNARD The CEO of Chryso group recently announced the opening of a new research and development centre in Jet Park
Updated 1 hour 17 minutes ago Construction chemicals producer The Chryso Group’s plans to use South Africa as the springboard for increased penetration into the African continent will be boosted by the establishment of a new research and development (R&D) facility at the Chryso Southern Africa...
CIVIL ENGINEERING The International Conference on Sustainable Civil Engineering will be held in Cape Town in June
Updated 1 hour 17 minutes ago Open-access journal publishing group of India OMICS will host the International Conference on Sustainable Civil Engineering in Cape Town from June 20 to 22. The conference will focus on applying a sustainability concept when designing a structure, and when...
THOMAS SURMON Sait is working with the Department of Science and Technology and the South African Bureau of Standards to make sure local lubricant standards match international standards
Updated 1 hour 17 minutes ago The focus in the oils and lubricants industry is constantly being shifted to address regulations that arise, which, in turn, creates a need to establish a better understanding of tribology for the industry, says the South African Institute of Tribology (Sait).
More
 
 
Latest News
President Jacob Zuma
Updated 5 hours ago President Jacob Zuma unveiled the skeletons of what he described as an economic “turnaround plan” in a State of the Nation Address dominated by the current plight of the South African economy, which was unlikely to grow by more than 1% in 2016 and would not nearly...
South Africa’s Competition Commission has recommended the Competition Tribunal conditionally approve the proposed merger between Gupta-owned Tegeta Exploration, Glencore’s Optimum coal mine and six target firms. The commission found that the proposed transaction was...
Incoming joint Sasol CEO Bongani Nqwababa
Incoming joint Sasol CEO Bongani Nqwababa believes “simplistic” correlations of the company’s performance to the oil price will become less relevant in coming years as the revenue and profit contribution of its chemicals business rises in line with its large North...
More
 
 
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
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Updated 1 hour 16 minutes ago 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...
Updated 1 hour 16 minutes ago 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...
Updated 1 hour 16 minutes ago 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.
Updated 1 hour 16 minutes 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...
Updated 1 hour 16 minutes ago 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.
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149