http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.15Change: -0.05
R/$ = 11.65Change: -0.10
Au 1283.66 $/ozChange: 10.51
Pt 1240.50 $/ozChange: 12.30
 
 
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 Labour and Skills Development News
Labour union Solidarity and carrier Comair will again meet at the Commission for Conciliation, Mediation and Arbitration (CCMA) on Monday, after wage negotiations between the parties deadlocked earlier this month. Wage talks between the parties started in September...
Article contains comments
Article contains comments
Western Cape entrepreneurs have just four days before applications close to secure cash injections of at least R10-million by pitching their business ideas to major funding bodies at the Western Cape Funding Fair – the province’s own “Dragon’s Den”. A statement on...
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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