National Association of Automotive Component and Allied Manufacturers commercial director Shivani Singh believes South Africa’s automotive manufacturing growth opportunities lie in deeper localisation involving Tier 1, 2 and 3 manufacturers, as most components are currently imported.

In this respect, Singh argues that there should be a focus on using equity and accounts, when available, for manufacturers to locally produce raw materials and components for the automotive sector.

Meanwhile, South African Capital Equipment Export Council CEO Eric Bruggeman points out that South Africa imported goods worth R178-billion in the last financial year, amounting to about 6% of its gross domestic product.

However, considering that there is a lack of suppliers in the manufacturing sector, Singh suggests that allied industries need to become involved, especially if they have the capacity and competence.

This could assist in transforming South Africa from a consumer-driven society into a world-class producer and manufacturer, with increasing local and export opportunities, Madala & Associates CEO Diley Naidoo notes.

He adds that manufacturing offers the greatest potential to create jobs at respectable pay levels for unskilled and semiskilled workers, with an estimated 90% of jobs expected to come from small, medium-sized and microenterprises (SMMEs) by 2030.

However, partnerships and training will be key before a company can look at local content, Bruggeman notes.

SMMEs will also need to stop “leaning on government and do it themselves”, he avers.

Additionally, Rifle-Shot Performance Holdings CEO and cofounder Ian Huntly says that, while there is a lot of excitement surrounding the Fourth Industrial Revolution, SMMEs need to be mindful of “where they really are right now”.

He suggests that businesses identify their problem areas and address these, while also getting process reliability under control, and improving quality and dependability, speed, flexibility and cost.