The Construction Sector 2017
Price
R 1 900.00(ZAR) estimated $ 119.89 (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 54 companies, including Group Five which recently announced that the group would be disposing of its manufacturing cluster. This forms part of a turnaround strategy to return the company to profitability after the group's core operating profit contracted from R736.5m in 2016 to a year-on-year loss of R659.3m for the financial year ended 30 June 2017. The disposal of Murray & Roberts’ Infrastructure and Buildings businesses was unconditionally concluded and transferred to a consortium led by the Southern Palace Group. The company has since been renamed and re-branded as Concor Construction, which is also profiled in this detailed and informative report.
The South African Construction Sector
The South African construction industry is a strategic sector that supports the government’s National Development Plan (NDP). During 2016 total nominal expenditure on construction works and related activities totalled approximately R420bn and the sector generated an estimated 1,483,000 employment opportunities across the formal and informal sectors. Infrastructure investment, or Gross Fixed Capital Formation (GFCF), was approximately 19.6% of GDP for 2016, with public sector infrastructure investment contributing 6% to GDP. Government has reiterated its commitment to infrastructure development by earmarking R948bn over the next three years.
Difficult Economic Conditions
Despite this commitment, stakeholders have expressed concern about the sector, especially as 140,000 construction jobs were shed between the first and third quarters of 2017. According to figures released by Statistics South Africa, the construction industry growth rate contracted by 0.8% quarter-on-quarter in Q1 2017 and by 0.5% quarter-on-quarter in Q2 2017. Private sector infrastructure spend, which totalled almost R185.5bn in 2016, is expected to remain muted over the medium-term. As profitability continues to deteriorate, role players report that competition for projects is steadily intensifying.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | 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 | 25 |
| 4.1.2. | Regulations | 27 |
| 4.1.3. | Enterprise Development and Socio-Economic Development Initiatives | 32 |
| 4.2. | Continental | 35 |
| 4.3. | International | 39 |
| 5. | INFLUENCING FACTORS | 41 |
| 5.1. | Government Interventions | 41 |
| 5.2. | Economic Environment | 42 |
| 5.3. | Rising Input Costs | 43 |
| 5.4. | Labour | 44 |
| 5.5. | Supply and Quality of Building Materials | 48 |
| 5.6. | Health and Safety Concerns | 49 |
| 5.7. | Technology, Research and Development (R&D) and Innovation | 50 |
| 5.8. | Environmental Concerns | 54 |
| 5.9. | Cyclicality | 57 |
| 5.10. | Corruption | 57 |
| 6. | COMPETITION | 58 |
| 6.1. | Barriers to Entry | 60 |
| 7. | SWOT ANALYSIS | 61 |
| 8. | OUTLOOK | 62 |
| 9. | INDUSTRY ASSOCIATIONS | 62 |
| 10. | REFERENCES | 63 |
| 10.1. | Publications | 63 |
| 10.2. | Websites | 65 |
| APPENDIX 1 | 67 | |
| The Construction Industry Development Board (CIDB) Grading Designations | 67 | |
| APPENDIX 2 | 68 | |
| The Global Competitiveness Index 2017-2018: South Africa | 68 | |
| COMPANY PROFILES | 69 | |
| AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD | 69 | |
| ARNOTT PANELS (PTY) LTD | 71 | |
| AVENG LTD | 73 | |
| B AND E INTERNATIONAL (PTY) LTD | 77 | |
| BASIL READ HOLDINGS LTD | 80 | |
| BILFINGER INTERVALVE AFRICA (PTY) LTD | 84 | |
| BLUHM BURTON ENGINEERING (PTY) LTD | 86 | |
| BOSCH PROJECTS (PTY) LTD | 88 | |
| CALGRO M3 HOLDINGS LTD | 90 | |
| CAPE FORMWORK CONTRACTORS (PTY) LTD | 94 | |
| CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD | 96 | |
| COLAS AFRICA HOLDINGS (PTY) LTD | 98 | |
| CONCOR CONSTRUCTION (PTY) LTD | 100 | |
| CONCOR PROJECTS (PTY) LTD | 103 | |
| CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD | 105 | |
| DIABOR (PTY) LTD | 107 | |
| ESOR LTD | 109 | |
| EXR CONSTRUCTION (PTY) LTD | 112 | |
| FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD | 115 | |
| FLUOR SOUTH AFRICA (PTY) LTD | 117 | |
| GAUTENG PILING (PTY) LTD | 120 | |
| GEOMECHANICS (PTY) LTD | 122 | |
| GIURICICH BROS CONSTRUCTION (PTY) LTD | 125 | |
| GLENKEY CONSTRUCTION (PTY) LTD | 127 | |
| GROUP FIVE CONSTRUCTION (PTY) LTD | 129 | |
| HATCH AFRICA (PTY) LTD | 137 | |
| HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD | 139 | |
| INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD | 142 | |
| ISCMATLA (PTY) LTD | 146 | |
| ISOWALL SOUTHERN AFRICA (PTY) LTD | 148 | |
| KAEFER ENERGY PROJECTS (PTY) LTD | 150 | |
| LIVIERO BUILDING (PTY) LTD | 152 | |
| MAZOR GROUP LTD | 155 | |
| MOTHEO CONSTRUCTION GROUP (PTY) LTD | 158 | |
| MURRAY AND ROBERTS HOLDINGS LTD | 160 | |
| NMC (PTY) LTD | 163 | |
| PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD | 166 | |
| POWER CONSTRUCTION (PTY) LTD | 168 | |
| RAMUTSA RAIL CC | 170 | |
| RAUBEX GROUP LTD | 172 | |
| RO-AL CONSTRUCTION (PTY) LTD | 176 | |
| ROBOR (PTY) LTD | 178 | |
| SA SCAFFOLDING CC | 181 | |
| SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) | 183 | |
| STEFANUTTI STOCKS HOLDINGS LTD | 186 | |
| TIBER CONSTRUCTION (PTY) LTD | 191 | |
| TN MOLEFE CONSTRUCTION (PTY) LTD | 194 | |
| TOP FIX (PTY) LTD | 196 | |
| UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD | 199 | |
| VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD | 201 | |
| VNA PILING CC | 203 | |
| WACO AFRICA (PTY) LTD | 205 | |
| WILSON BAYLY HOLMES-OVCON LTD | 209 | |
| WK CONSTRUCTION (PTY) LTD | 213 |
