Although the embattled manufacturing industry’s income grew by 9.4% a year from 2011 to 2014, employment in the sector decreased significantly over the same period, Statistics South Africa’s (Stats SA’s) data shows.

Its Manufacturing Industry 2014 report notes that the industry’s income increased from R1.68-trillion in 2011 to R2.2-trillion in 2014.

Significant increases in income were recorded by the coke, petroleum, rubber and plastic sectors, as well as the food and beverage and transport equipment sectors.

The profit margin for the manufacturing industry was 4.4% in 2014. Furniture, other manufacturing and recycling had the highest profit margin, followed by wood, wood products, paper, publishing and printing at 6.1% and glass and other nonmetallic mineral products at 5.5%.

Transport equipment and metals, metal products, machinery and equipment had the lowest profit margin at 2.9%.

“Employment in the manufacturing sector has declined from 1.44-million in 2005 to 1.19-million in 2014; a loss of 246 000 jobs,” Statistician-General Pali Lehohla said at the report’s launch, in Pretoria, on Monday.

The biggest loss in employment was in the textiles industry, while jobs were only gained in the petrochemicals industry.

“Large enterprises only contributed 46.4% to employment, whereas small, medium-sized and microenterprises (SMMEs) contributed 53.6% to employment,” he noted.

CONSTRUCTION
Stats SA also released its 2014 Construction Report on Monday, which indicated that the total income for the industry had increased by 13.4% a year from R269-billion in 2011 to R392-billion in 2014.

The report pointed out that the profit margin for the construction industry was 2.9% in 2014. Construction of other structures had the highest profit margin at 10%, followed by shopfitting at 8.7% and site preparation at 8%.

Construction by specialist trade contractors' had the lowest profit margin of 0.4%.

“Large increases were seen in the construction and civil engineering sectors and the construction of building sectors,” said Lehohla.

The report highlighted that employment in the sector had decreased from 541 000 in 2007 to 485 000 in 2011 before a clawback to 502 000 in 2014.

The highest growth in employment was in the construction and civil engineering sector.

Large enterprises contributed 37.7% to employment in the sector, while SMMEs contributed 62.7% towards employment.

“Gauteng was the largest contributor towards employment, with 180 000 people employed in the sector, followed by KwaZulu-Natal with 80 000 people and the Western Cape with 64 000 people,” he noted.