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Industrial parks survey outlines industry strengths, weaknesses

12th October 2016

By: Anine Kilian

Contributing Editor Online

  

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A survey of State-owned industrial parks has revealed that their use of a property management approach, as opposed to the cluster-based approach adopted by private industrial parks, will prevent the exponential growth envisaged, Department of Trade and Industry (DTI) regional industrial cluster director Gavin Adams said on Wednesday.

Addressing an audience at the Industrial Parks Symposium hosted by the DTI and the Development Bank of Southern Africa, in Midrand, he stated that industrial parks were aimed at improving manufacturing processes and achieving the best finished product in the best possible way using the least amount of materials and energy and the at lowest cost.

He noted that Trade and Industry Minister Dr Rob Davies earlier this year said that industrial parks would help the economy diversify away from an over-reliance on primary, unprocessed products and move up the value chain.

Adams highlighted that the DTI had two incentives targeted towards industrial parks, namely the Comprehensive Capacity Development Programme, a cluster-based incentive, and the Critical Infrastructure Programme, an infrastructure incentive.

The survey results also showed that, amid pockets of sustainability, there was a poor selection of tenant companies in State-owned industrial parks, resulting in a mismatch between tenant needs and leased property.

“Key issues that were evident from the survey included security concerns, outdated infrastructure and equipment, the lack of maintenance to buildings, skills scarcity and limited access to markets,” he said.

ENTERPRISE CLUSTERS
Adams pointed out that enterprise clusters played a crucial role in raising the industrial competitiveness of regions, noting that the unique characteristics of a cluster-based approach resulted in reduced production costs, a propensity towards innovation and continuous improvement, as well as a propensity towards a sustainable and competitive advantage.

He added that it was important to retrofit existing industrial parks to improve their economic and environmental performance.

Also speaking at the event, DTI deputy director-general for special economic zones and economic transformation Sipho Zikode urged all spheres of government to create and provide business opportunities for companies operating from industrial parks to help them grow and be more efficient.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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