Report Coverage
This report focuses on the building installations sector in South Africa – with a focus on electricity energy efficiency for buildings. It includes comprehensive information on the state and size of the sector, key trends and statistics, capital expenditure, corporate actions, regulations and environmental concerns. There are profiles of 83 companies including lift and elevators operators such as Otis, Schindler and Kone, plumbing companies such as Drain Surgeon and Industrial Plumbers and heat pump installers including SA Heat Pump Engineers.
Introduction
The building installation sector is a complex sector. It consists of a number of activities involving the fitting of equipment to buildings, such as plumbing, insulation, lighting, heating and air-conditioning, sprinkler systems, lifts, electrical work, shopfitting and fitting of certain plants. The sector is affected by capital expenditure by the state and private property owners and managers, which has slowed since the onset in March 2020 of the pandemic, as vacancies have escalated, particularly in commercial office blocks. A major trend driving new installations is the move by property developers and construction companies to make buildings greener, in a bid to lower energy and water costs and carbon emissions.
Strengths
• Competition is largely vibrant, as most of the sector is made up of small companies.
• Strong recognition for green buildings.
• The property sector is well organised and includes a number of JSE-listed property investors.
• The sector is represented by a number of industry associations.
Weaknesses
• A number of professions in the sector face a lack of skilled artisans.
• Building installations are very closely tied to the performance of the economy.
• Recent investigations by competition authorities have uncovered collusion in at least one market segment.
• The government has been slow to put special infrastructure projects out to tender.
Opportunities
• Energy efficiency tax deductions.
• Load-shedding and electricity price increases as well as concern other water infrastructure and pricing are driving a demand by building owners for energy efficiency as well as water efficiency installations.
• New regulations compel owners of non-residential buildings to display energy efficiency certificates.
• Several of the special infrastructure projects gazetted in July 2020 present opportunities for those fitting building installations.
• The pandemic has created opportunities for air-conditioning installers to fit safer filters.
Threats
• Building operators have cut or delayed capital expenditure due to the pandemic.
• Late payments by government to renovators.
• The National Energy Regulator of South Africa’s 1MW threshold for power projects has limited the rollout of bigger solar PV projects.
• The pandemic and particularly the work-from-home trend has decreased demand for new building projects and renovations.
• The property sector faces a number of challenges such as expropriation without compensation and possible regulations being passed on rental determinations, escalations, lease renewals and other commercial business principles.
• There are a large number of non-compliant contractors, particularly in the plumbing and installation of heating, ventilation, and air conditioning systems.
Outlook
The building installations sector faces constrained growth as the pandemic has slowed the construction of new buildings, particularly in the non-residential sector. National Treasury forecasts that the economy will grow by 3.3% in 2021, following a 7% contraction in 2020 (including a 20.3% contraction in the construction sector). However, as of Q1 2021 business confidence remained subdued and it is unclear when the number of new installations will return to pre-pandemic levels. Despite this, the drive by property owners to reduce carbon emissions by developing green buildings and improve energy efficiency by reducing their reliance on the electricity grid is expected to provide a number of opportunities for installers, particularly those involved with solar installations (solar PV, solar water heating and heat pumps). The South African Photovoltaic Industry Association says given continued load-shedding the outlook for solar PV is “incredibly positive”. While the gazetting in July 2020 by the Department of Public Works and Infrastructure of several strategic infrastructure projects (SIPs), including R138bn housing projects, present opportunities for those fitting new building installations, it will be dependent on how quickly these can get off the ground.
The Building Installation Industry in South Africa
2021
Full Report
R 1 900.00(ZAR) estimated $106.42 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.49 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Geographic Position | 6 |
| 3. | SIZE OF THE INDUSTRY | 7 |
| 4. | STATE OF THE INDUSTRY | 15 |
| 4.1. | Local | 15 |
| 4.1.1. | Corporate Actions | 22 |
| 4.1.2. | Regulations | 23 |
| 4.1.3. | Enterprise Development and Social Economic Development | 28 |
| 4.2. | Continental | 28 |
| 4.3. | International | 30 |
| 5. | INFLUENCING FACTORS | 32 |
| 5.1. | Coronavirus | 32 |
| 5.2. | Economic Environment | 34 |
| 5.3. | Technology, Research and Development (R&D) and Innovation | 35 |
| 5.4. | Government Incentives and Support | 37 |
| 5.5. | Environmental Concerns | 38 |
| 5.6. | Labour | 49 |
| 6. | COMPETITION | 51 |
| 6.1. | Barriers to Entry | 52 |
| 7. | SWOT ANALYSIS | 52 |
| 8. | OUTLOOK | 53 |
| 9. | INDUSTRY ASSOCIATIONS | 54 |
| 10. | REFERENCES | 55 |
| 10.1. | Publications | 55 |
| 10.2. | Websites | 56 |
| APPENDIX 1 | 58 | |
| Summary of Notable players | 58 | |
| COMPANY PROFILES | 70 | |
| ABB SOUTH AFRICA (PTY) LTD | 70 | |
| ACES AFRICA (PTY) LTD | 73 | |
| ACTOM (PTY) LTD | 75 | |
| AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD | 83 | |
| AIRGRO (PTY) LTD | 85 | |
| AIRVENT AIRCONDITIONING AND VENTILATION CAPE (PTY) LTD | 87 | |
| AQUAHEAT POOL HEATERS CC | 89 | |
| ARISTON THERMO SOUTH AFRICA (PTY) LTD | 91 | |
| ARNOTT PANELS (PTY) LTD | 93 | |
| ATBRO SYSTEMS CC | 95 | |
| BRAND ENGINEERING S A (PTY) LTD | 97 | |
| BRIGGS AND STRATTON RSA (PTY) LTD | 99 | |
| BRIGHTSOURCE ENERGY SOUTH AFRICA (PTY) LTD | 101 | |
| BUSINESS CONNEXION (PTY) LTD | 102 | |
| CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD | 105 | |
| CBRE EXCELLERATE GWS FACILITIES MANAGEMENT (PTY) LTD | 107 | |
| CHANNEL DATA (PTY) LTD | 109 | |
| COLBYN ELECTRICAL SERVICES CC | 111 | |
| CYBERSMART (PTY) LTD | 112 | |
| CYCLOTHERM SOUTH AFRICA (PTY) LTD | 114 | |
| DIESEL ELECTRIC SERVICES (PTY) LTD | 116 | |
| DIFFERENCE APPROACH (PTY) LTD | 118 | |
| DIMENSION DATA (PTY) LTD | 119 | |
| E\'N I ELECTRICAL-INSTRUMENTATION ENGINEERING AND CONTRACTORS (PTY) LTD | 122 | |
| EDISON POWER (PTY) LTD | 124 | |
| EMPAYAR ELECTRICAL (PTY) LTD | 126 | |
| ERD FAB (PTY) LTD | 127 | |
| ERICSSON SOUTH AFRICA (PTY) LTD | 129 | |
| FALCON SHOPFITTERS SA (PTY) LTD | 131 | |
| FLAT-FOOT AIR CONDITIONERS (PTY) LTD | 133 | |
| GODDARDS ELECTRICAL CONTRACTORS (PTY) LTD | 135 | |
| HI TEMP SOLAR HEATING CC | 136 | |
| HI-TECH LIFTS CC | 138 | |
| HONEYWELL AUTOMATION AND CONTROL SOLUTIONS SOUTH AFRICA (PTY) LTD | 140 | |
| HYBRID AUTOMATION CC | 143 | |
| INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD | 145 | |
| INTERNATIONAL TECHNOLOGY SOURCING CC | 147 | |
| IRITRON (PTY) LTD | 148 | |
| ISOWALL SOUTHERN AFRICA (PTY) LTD | 150 | |
| IZIKATHI SECURITY (PTY) LTD | 152 | |
| KONE ELEVATORS SOUTH AFRICA (PTY) LTD | 154 | |
| M C E FABRICATION AND CONSTRUCTION (PTY) LTD | 156 | |
| M M A SECURITY SERVICES (PTY) LTD | 157 | |
| M-TECH INDUSTRIAL (PTY) LTD | 159 | |
| MAGETZ ELECTRICAL CC | 162 | |
| MELCO ELEVATOR (SOUTH AFRICA) (PTY) LTD | 164 | |
| METRO FIBRE NETWORX (PTY) LTD | 166 | |
| MICROPOWER MODULEK (PTY) LTD | 168 | |
| OTIS (PTY) LTD | 170 | |
| PAN AFRICAN SHOPFITTERS (PTY) LTD | 173 | |
| PROTHERM SYSTEMS (PTY) LTD | 175 | |
| RATEHANG PROJECTS CC | 177 | |
| RMS SHOPFITTING (PTY) LTD | 179 | |
| RO-AL CONSTRUCTION (PTY) LTD | 181 | |
| SA HEAT PUMP ENGINEERS (PTY) LTD | 183 | |
| SCHINDLER LIFTS (SA) (PTY) LTD | 184 | |
| SECUTEL TECHNOLOGIES (PTY) LTD | 186 | |
| SERVEST (PTY) LTD | 188 | |
| SHOSPEC (PTY) LTD | 192 | |
| SIRAC SOUTHERN AFRICA (PTY) LTD | 194 | |
| SOLA GROUP (PTY) LTD | 196 | |
| SOLAR HEAT EXCHANGERS (PTY) LTD | 198 | |
| SOLAREFF (PTY) LTD | 200 | |
| SOUTHERN AIR CONDITIONING (PTY) LTD | 202 | |
| STEFANUTTI STOCKS HOLDINGS LTD | 204 | |
| STEINMULLER AFRICA (PTY) LTD | 209 | |
| STIEBEL ELTRON SOUTHERN AFRICA (PTY) LTD | 212 | |
| SYNERGY ENERGY SOLUTIONS (PTY) LTD | 213 | |
| SYSTEMS AUTOMATION AND MANAGEMENT (PTY) LTD | 214 | |
| THORBURN SECURITY SOLUTIONS (PTY) LTD | 216 | |
| WACO AFRICA (PTY) LTD | 219 | |
| WELKOM INDUSTRIAL CONTROLS (PTY) LTD | 223 | |
| XONE INTEGRATED SECURITY (PTY) LTD | 225 | |
| ZEST WEG GROUP AFRICA (PTY) LTD | 227 |
