http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
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  
 
 
Feb 25, 2013

New survey confirms SA’s waning manufacturing competitiveness

Back
Africa|Education|Industrial|Sustainable|Systems|Africa|China|Egypt|Germany|Greece|Ireland|South Africa|United States|Energy|Manufacturing|Manufacturing Competitiveness|Product|Solutions|Systems|Coenraad Bezuidenhout|Infrastructure|Mike Vincent|Stewart Jennings
Africa|Education|Industrial|Sustainable|Systems|Africa||Energy|Manufacturing|Solutions|Systems|Infrastructure|
africa-company|education-company|industrial|sustainable|systems-company|africa|china|egypt|germany|greece|ireland|south-africa|united-states|energy|manufacturing|manufacturing-competitiveness|product|solutions|systems|coenraad-bezuidenhout|infrastructure|mike-vincent|stewart-jennings
© Reuse this



Decisive action is required to arrest the decline in South Africa’s manufacturing competitiveness and the contribution of the sector to growth and job creation, the inaugural domestic derivative of the 2013 Global Manufacturing Competitiveness Index asserts.

The country slipped two places from 22 to 24 between 2010 and 2013 in the 38-country global index, compiled by Deloitte Touche Tohmatsu and the US Council on Competitiveness. China, Germany and the US top the index, which was propped up by Greece, Ireland and Egypt.

The South African survey, which was released on Monday, also forecast that the country was poised to fall further in the coming five years, owing to a range of constraints, ranging from chronic skills shortages, through to low labour productivity and rising input costs.

The local survey, which was compiled separately by Deloitte, in collaboration with the Manufacturing Circle, indicated that the 76 domestic manufacturers surveyed were losing ground on a range of indicators.

The enterprises were involved in a diverse cross section of activities and varied in size from firms turning over less than R100-million a year and employing about 100 people, through to large companies with revenues exceeding R10-billion and employing up to 5 000 people.

The leading concern for local manufacturers emerged as the ‘cost and availability of labour and materials’ – a result that represented a marked deviation from the global survey, where ‘talent-driven innovation’ was perceived as the most pressing challenge.

Outgoing Manufacturing Circle chairperson Stewart Jennings said the nominal cost of labour was not the chief concern, but rather low levels of productivity and the lack of technical skills.

He added that there was also still union resistance to linking wage agreements to productivity indicators, which, coupled with a lack of industrial peace, was a key concern for industrial investors.

Deloitte’s South Africa manufacturing industry leader Karthi Pillay said there was an urgent need for government, business and labour to deliberate on ways to reverse the current deindustrialisation trend, as well as to deal with the underlying causes of the country’s declining manufacturing competitiveness.

The sector’s contribution to gross domestic product had fallen from a peak of 22% in the 1980s to below 12% currently.

Pillay reported that Deloitte planned to follow up the release of the ‘Enhancing Manufacturing Competitiveness in South Africa’ report with an effort to facilitate a stakeholder colloquium, where possible remedies could be discussed.

Besides industry’s labour-market concerns, the survey found that domestic manufacturers were also anxious over local market attractiveness; energy costs and policies; economic, trade and tax systems; and the adequacy of physical infrastructure.

By contrast, respondents to the global survey ranked energy costs and policies only seventh in the factors affecting their competitiveness, while placing emphasis on talent-driven innovation and economic, trade and tax systems, which ranked first and second respectively.

Deloitte’s strategy and innovation director Mike Vincent argued that, besides a proactive engagement between the social partners on the key productivity constraint, other important considerations related to education, incentives, industry collaboration and supportive incentives.

Manufacturing Circle executive director Coenraad Bezuidenhout concurred, arguing that incentives could offer critical short-term relief, while sustainable solutions were found to the issues currently undermining South Africa’s manufacturing competitiveness.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
The mass exit of thousands of Telkom employees came as no surprise, trade union Solidarity said this week. Nearly 2 400 employees had opted for Telkom’s voluntary severance packages (VSPs) and officially parted ways with the embattled company on Friday.
Africa’s universities and scholars need to take centre stage in the ‘Africa Rising’ narrative, embracing an important role in the development of the African Agenda. This was the message Gauteng Premier David Makhura imparted to delegates at the inaugural two-day...
More
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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