R/€ = 14.04
R/$ = 11.04
Au 1247.89 $/oz
Pt 1281.00 $/oz
Jan 20, 2006
Study pinpoints weak spots in local industryBack
Engineering|Africa|Coffey|Africa|South Africa|Automotive|Equipment|Manufacturing|AlliednManu-facturers|National Association Of Automotive Component|South African Automotive Benchmarking Club|Allied Manu-facturers|AlliednManu-facturers|Dave Coffey|Justin Barnes|Asia Pacific|Central Europe
© Reuse this South African component manufacturers have some ground to gain before they can claim a podium position in the highly- competitive developing-world eco-nomies.
Bel-Essex Engineering MD Dave Coffey, also past president of the National Association of Automotive Component and Allied Manu-facturers (Naacam) and former Shatterprufe MD, says the industry has made “significant progress” in an environment dominated by a now “much stronger rand”.
He adds that there has been a “huge improvement in quality”.
However, Coffey notes that South Africa’s main competitor is no longer the developed world, and that the country is now forced to up its game against Central Europe and the Asia Pacific region – which is proving to be a tough task.
He refers to a South African Automotive Benchmarking Club programme which compares 71 South African component manufacturers with 35 manufacturers in Central Europe and 21 in Asia Pacific.
The results of this study (by Justin Barnes) show that South Africa’s equipment is 13,6 years old, on aver- age, compared to ten years internationally.
Also, delivery reliability in South Africa was 93,21% in 2004, compared to 91,96% in Central Europe, and 97,92% in Asia Pacific.
The average lead time from production to international customers was 45,1 days for South African firms, 14,2 days for Central Euro-pean firms and 40,6 days for Asian Pacific firms.
Numeracy and literacy levels were at 80,17% in South Africa in 2004, and 99,24% in Central Europe and Asia Pacific.
Capital expenditure in South Africa as a proportion of total sales was 4,08%, compared with 7,47% in Central Europe and 10,79% in Asia Pacific.
The average automotive customer return rate in parts per million was 613 for South Africa (this was 8 064 in 2001), 1 261 for Central Europe, and 293 for Asia Pacific.
Investment in training as a percentage of the total remuneration bill was 1,95% in South Africa, compared with 2,78% in Central Europe and 7,76% in Asia Pacific.
Coffey says Asia Pacific and Central Europe are advancing in terms of technology, manufacturing excellence and cost, with the latter including raw materials, labour rates and economies of scale.
He notes that South Africa is not spending enough on the training of personnel, and that com- ponent manufacturers need to instil a culture of ‘doing it right the first time’.
“We need to lift our game again. We must react to what our competitors are doing and change our behaviour.” Coffey also believes there is a need for increasing investment incentives in order to lure investors to South Africa.
Edited by: Irma Venter© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...