The Construction Sector 2016
Price
R 1 900.00(ZAR) estimated $ 120.93 (USD)*
Report Coverage
The report on the South African construction industry and related activities, which includes scaffolding solutions and structurally insulated panel systems (SIPs), describes current conditions and recent developments. Profiled in the report are 51 companies, including the country’s largest construction and engineering companies based on market capitalisation, Wilson Bayly Holmes-Ovcon Ltd (WBHO), Murray & Roberts Holdings Ltd, Raubex Group Ltd, Calgro M3 Holdings Ltd, Group Five Ltd, Aveng Ltd, Stefanutti Stocks Holdings Ltd, Basil Read Holdings Ltd and Esor Ltd.
The South African Construction Sector
With total annual income in excess of R392bn and supporting over 500,000 direct jobs in the formal sector, building and construction activities play a vital role in the South African economy. The country’s nine largest construction companies are involved in major infrastructure development projects, while medium-sized companies are generally active in construction activity relating to road works, bulk water infrastructure and water and sanitation projects. Approximately 95% of companies operating in the local construction sector are classified as small and micro enterprises, and focus mainly on the residential building market.
A sector Under Pressure
The beleaguered sector remains stifled by the prevailing economic slowdown, and government’s failure to implement the roll-out of mega-infrastructure projects has prompted larger construction companies to concentrate on foreign markets. Role players across the various grades of works cite the following challenges as constraining factors: an increasingly competitive market; delayed payments; labour disruptions; poor productivity; the shortage of skills and the resulting lack of adequate quality control; the rising cost of construction materials; and low profit margins. For the major players further issues include the spectre of collusive conduct, damage claims for anti-competitive behaviour, and the impending exit from the sector of construction titan, Murray & Roberts, a company that has been an integral part of the South African building and construction landscape since 1902.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 4 |
| 2.2. | Geographic Position | 5 |
| 3. | SIZE OF THE INDUSTRY | 6 |
| 4. | STATE OF THE INDUSTRY | 19 |
| 4.1. | Local | 19 |
| 4.1.1. | Corporate Actions | 23 |
| 4.1.2. | Regulations | 26 |
| 4.1.3. | Enterprise Development and Social Economic Development | 30 |
| 4.2. | Continental | 33 |
| 4.3. | International | 36 |
| 5. | INFLUENCING FACTORS | 38 |
| 5.1. | Government Initiatives | 38 |
| 5.2. | Economic Environment | 39 |
| 5.3. | Rising Input Costs | 40 |
| 5.4. | Labour | 40 |
| 5.5. | Supply and Quality of Building Materials | 44 |
| 5.6. | Health and Safety Concerns | 45 |
| 5.7. | Technology, Research and Development (R&D) and Innovation | 45 |
| 5.8. | Environmental Concerns | 48 |
| 5.9. | Cyclicality | 50 |
| 5.10. | Corruption | 50 |
| 6. | COMPETITION | 51 |
| 6.1. | Barriers to Entry | 53 |
| 7. | SWOT ANALYSIS | 53 |
| 8. | OUTLOOK | 54 |
| 9. | INDUSTRY ASSOCIATIONS | 55 |
| 10. | REFERENCES | 56 |
| 10.1. | Publications | 56 |
| 10.2. | Websites | 57 |
| APPENDIX 1 | 59 | |
| The Construction Industry Development Board (CIDB) Grading Designation | 59 | |
| APPENDIX 2 | 60 | |
| Green Building Practices | 60 | |
| COMPANY PROFILES | 61 | |
| AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD | 61 | |
| ARNOTT PANELS (PTY) LTD | 63 | |
| AVENG LTD | 66 | |
| B AND E INTERNATIONAL (PTY) LTD | 70 | |
| BASIL READ HOLDINGS LTD | 72 | |
| BILFINGER INTERVALVE AFRICA (PTY) LTD | 76 | |
| BLUHM BURTON ENGINEERING (PTY) LTD | 78 | |
| BOSCH STEMELE (PTY) LTD | 80 | |
| CALGRO M3 HOLDINGS LTD | 82 | |
| CAPE FORMWORK CONTRACTORS (PTY) LTD | 85 | |
| CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD | 87 | |
| COLAS AFRICA HOLDINGS (PTY) LTD | 89 | |
| CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD | 91 | |
| DIABOR (PTY) LTD | 93 | |
| DURA SOLETANCHE-BACHY (PTY) LTD | 95 | |
| ESOR LTD | 97 | |
| EXR CONSTRUCTION (PTY) LTD | 100 | |
| FAIRBROTHER GEOTECHNICAL ENGINEERING CC | 102 | |
| FLUOR SOUTH AFRICA (PTY) LTD | 104 | |
| GAUTENG PILING (PTY) LTD | 106 | |
| GEOMECHANICS (PTY) LTD | 108 | |
| GIURICICH BROS CONSTRUCTION (PTY) LTD | 110 | |
| GLENKEY CONSTRUCTION (PTY) LTD | 112 | |
| GROUP FIVE CONSTRUCTION LTD | 114 | |
| HATCH AFRICA (PTY) LTD | 122 | |
| HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD | 125 | |
| INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD | 128 | |
| ISCMATLA (PTY) LTD | 132 | |
| ISOWALL SOUTHERN AFRICA (PTY) LTD | 134 | |
| KAEFER ENERGY PROJECTS (PTY) LTD | 136 | |
| LIVIERO BUILDING (PTY) LTD | 138 | |
| MAZOR GROUP LTD | 141 | |
| MOTHEO CONSTRUCTION GROUP (PTY) LTD | 144 | |
| MURRAY AND ROBERTS HOLDINGS LTD | 147 | |
| NMC (PTY) LTD | 151 | |
| PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD | 154 | |
| POWER CONSTRUCTION (PTY) LTD | 157 | |
| RAUBEX GROUP LTD | 160 | |
| RO-AL CONSTRUCTION (PTY) LTD | 164 | |
| ROBOR (PTY) LTD | 166 | |
| SA SCAFFOLDING CC | 169 | |
| SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) | 171 | |
| STEFANUTTI STOCKS HOLDINGS LTD | 174 | |
| TIBER CONSTRUCTION (PTY) LTD | 179 | |
| TOP FIX (PTY) LTD | 182 | |
| UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD | 185 | |
| VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD | 187 | |
| VNA PILING CC | 189 | |
| WACO AFRICA (PTY) LTD | 191 | |
| WILSON BAYLY HOLMES-OVCON LTD | 195 | |
| WK CONSTRUCTION (PTY) LTD | 200 |
