Govt commits to rebuilding TDM sector

12th November 2014 By: Creamer Media Reporter

Govt commits to rebuilding TDM sector

Trade and Industry Minister Dr Rob Davies and Necsa CEO Phumzile Tshelane

The shortage of toolmakers in South Africa posed a serious challenge to the country’s ability to achieve the goals set out in its Industrial Policy Action Plan, Trade and Industry Minister Dr Rob Davies said this week.

Speaking at the launch of the Tooling Centre of Excellence at the South African Nuclear Energy Corporation (Necsa), in Pretoria, he noted that toolmakers in the country were ageing and that the number of properly trained toolmakers produced a year remained very low, resulting in a continuing shortage of toolmakers in a variety of manufacturing sectors.

He added that the demise of the tool, die and mould-making (TDM) sector over the past 30 years had resulted in the loss of more than 80% of TDM manufacturing capacity.

He estimated that the South African economy used, on average, more than R15-billion a year of TDM equipment and maintenance services, of which only 20% was provided by the local industry.

Davies attested that this had not only had an adverse effect on the balance of payments, but resulted in significant loss of technical and engineering skills and maintenance support.  Given the centrality of the TDM sector, the broader manufacturing sector’s competitiveness had also been negatively impacted.

“The decline of the TDM sector led to the establishment of a partnership between the Department of Trade and Industry (DTI) and the Toolmaking Association of South Africa, which gave rise to a multistakeholder intervention known as the National Tooling Initiative (NTI) programme.

“The NTI, as a rehabilitation strategy, aims to address production and technology challenges, [the] skills deficit and transformation in the sector,” he said.

He added that the DTI understood the importance of the TDM sector in the economy and had, to date, supported the NTI with over R260-million, of which R9-million had been invested to equip the Tooling Centre of Excellence at Necsa.

Further, supplementary funds would be earmarked for future funding in an effort to develop a state-of-the-art facility.

Davies emphasised “this investment is necessary and will assist South Africa in reversing the skills deficit, close the age gap and contribute to regaining the manufacturing competitiveness.”