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building installation industry south africa

The Building Installation Industry in South Africa 2021

Stephen Timm | South Africa | 21 May 2021

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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.

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The Building Installation Industry in South Africa
The Building Installation Industry in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Table of Contents

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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