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Construction industry South Africa

The Construction industry in South Africa 2022

Carole Veitch | South Africa | 16 August 2022

The Construction Industry in South Africa 2020

Carole Veitch | South Africa | 29 September 2020

The Construction Industry in South Africa 2019

Carole Veitch | South Africa | 16 July 2019

The Construction Industry in South Africa 2018

Carole Veitch | South Africa | 04 April 2018

The Construction Industry in South Africa 2017

Carole Veitch | South Africa | 12 December 2017

The Construction Industry in South Africa 2016

Carole Veitch | South Africa | 24 October 2016

The Construction Industry in South Africa 2015

Carole Veitch | South Africa | 30 September 2015

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Report Coverage

This report on the construction industry in South Africa includes comprehensive information on the size and state of the sector including number of registered contractors and projects and other indicators, infrastructure development, notable players, major developments and corporate actions, and regulatory and environmental issues affecting the sector. There are profiles of 55 companies including well-known contractors such as Concor, Grinaker LTA, Raubex, Stefanutti Stocks and Wilson Bayly Holmes-Ovcon, state-owned players such as the South African National Roads Agency and specialist companies including Viva Formwork and Scaffolding, SA Scaffold Manufacturing and Kwikspace Modular Buildings.

Introduction

• The construction sector contributed R141bn in gross value added, or 2.7% of GDP, in 2021,
• The largest contributor to gross fixed capital formation was construction works/civil engineering, followed by residential buildings and non-residential buildings.
• Although there are still headwinds, role players say there are “green shoots in the form of shovel-ready projects”.
• Industry players welcomed government’s February 2022 announcement of infrastructure investment of more than R810bn over the next three years, but said rapid implementation is critical as the industry cannot afford further delays.

Strengths

• Barriers to entry for small and micro-sized companies are low.
• Construction is a key driver of socio-economic development.
• Government has prioritised the development of SMEs and companies owned by historically disadvantaged people.
• The construction industry is a strategic sector serving all sectors of the economy.
• The industry is one of the country’s largest creators of employment.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction sites are inherently hazardous workplaces.
• Contracts undertaken by smaller contractors are often poorly executed, project delays are common and quality control is often substandard.
• Corruption is endemic.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour and it is often difficult to retain professionals with specialist skills.
• There is a high level of reliance on the public sector for large projects.
• There is generally a low level of regulatory compliance.

Opportunities

• 3D printing of building materials and structures.
• Government has prioritised infrastructure development and is aiming to attract higher levels of private sector investment.
• Projects focusing on sustainability and green building, including off-the-grid living.
• The creation of micro-living solutions.
• The development of affordable housing.
• The development of drone services for the autonomous handling of materials on construction sites.
• The development of smart cities.
• The rollout of infrastructure development projects in South Africa, on the African continent and in other regions.
• The supply of modular structures for low-cost housing, healthcare facilities, etc.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into residential units.

Threats

• Climate change-related shocks, notably floods, coastal surges, rising sea levels, wildfires and droughts.
• Economic pressures, rising inflation and variables such as exchange rate fluctuations and the volatility of raw material prices.
• Policy uncertainty on land expropriation and land restitution.
• The impact of the Russia-Ukraine war on global security, energy prices and food security.
• The pandemic presents an ongoing risk, with the threat of new variants and the continued disruption of global supply chains.
• The threat of political instability and further eruptions of civil unrest.

Selected Highlights

Backward integration
• Whilst it is general practice for construction companies to focus on its core business, it does make sense for some companies to backwardly integrate into their respective value chains, especially as it relates to critical raw materials (e.g. re-enforcing steel products)
Internationalisation
• Construction companies tend to increase their footprint globally (Africa and the Rest of the World) in order to take advantage of growth opportunities elsewhere, to reduce their dependency on local markets (especially if local markets are small and growth is pedestrian), to reduce concentration (diversification) and to earn hard currency.
Rightsizing labour
• It is crucial for construction companies to increase and decrease their labour force in line with their output. Not doing so, can materially hurt the company financially. Most companies would therefore only employee workers on the basis of a firm order book (in addition to its core staff and management)
Upskilling the work force
• The number of projects across building and civil engineering are not always synchronised. It is therefore important to upskill workers within these broad disciplines to such a level that they can be interchangeable between these two lines of business. Worker shortages in civil projects can be augmented by surpluses in building projects, and vice versa

Outlook

• Floods and droughts have highlighted the importance of sustainable infrastructure development and the need for weather-resilient buildings.
• Cabinet’s approval of the National Infrastructure Plan 2050 in March 2022 provides a long-term road-map for infrastructure development.
• Local construction activity is gradually recovering, project pipelines are stabilising and there are opportunities in the energy sector, specifically in renewables.
• Domestic market conditions remain extremely challenging.
• Given the sector’s weak growth prospects, large players are expected to continue to pursue opportunities in high growth African markets and other regions.

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The Construction industry in South Africa
The Construction industry in South Africa 2022

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R 9 500.00(ZAR) estimated $522.91 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 366.04 (USD)*

Historical Reports

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2016-10-24

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The Construction Industry in South Africa 2015-09-30

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 6
2.2. Geographic Position 8
2.3. Size of the Industry 9
2.4. Key Success Factors and Pain Points 13
3. LOCAL 14
3.1. State of the Industry 14
3.2. Key Trends 22
3.3. Notable Players 23
3.4. Corporate Actions 26
3.5. Regulations 27
3.6. Enterprise Development and Social Economic Development 31
4. AFRICA 34
5. INTERNATIONAL 39
6. INFLUENCING FACTORS 42
6.1. COVID-19 42
6.2. Economic Environment 43
6.3. Environmental Issues 45
6.4. Labour 47
6.5. Technology, Research and Development (R&D) and Innovation 53
6.6. Government Support and Investment 55
6.7. Input Costs 57
7. COMPETITIVE ENVIRONMENT 59
7.1. Ownership Structure of the Industry 61
7.2. Barriers to Entry 61
8. SWOT ANALYSIS 62
9. OUTLOOK 63
10. INDUSTRY ASSOCIATIONS & ORGANISATIONS 63
11. REFERENCES 64
11.1. Publications 64
11.2. Websites 66
APPENDIX 1 67
Summary of Notable Players 67
COMPANY PROFILES 86
Arnott Panels (Pty) Ltd 87
Axsys Projects (Pty) Ltd 89
Basil Read Holdings Ltd 90
Bilfinger Intervalve Africa (Pty) Ltd 94
Bluhm Burton Engineering (Pty) Ltd 96
Bosch Projects (Pty) Ltd 98
Cape Scaffolding Contractors (Pty) Ltd 100
Cato Ridge Electrical Construction (Pty) Ltd 102
Colas Africa Holdings (Pty) Ltd 104
Concor Construction (Pty) Ltd 106
Construction Maintenance Services (Pty) Ltd 109
Diabor (Pty) Ltd 111
Edwin Construction (Pty) Ltd 113
Enza Construction (Pty) Ltd 115
Esor Ltd 117
EXR Construction (Pty) Ltd 120
Fairbrother Geotechnical Engineering (Pty) Ltd 123
Fikile Construction (Pty) Ltd 125
Fluor South Africa (Pty) Ltd 127
Geomechanics (Pty) Ltd 129
Grinaker LTA (Pty) Ltd 132
Group Five Construction (Pty) Ltd 135
Hatch Africa (Pty) Ltd 140
Haw and Inglis Civil Engineering (Pty) Ltd 143
Isowall Southern Africa (Pty) Ltd 146
Johannesburg Scaffolding (Pty) Ltd 148
Johnson Controls International (Pty) Ltd 150
Kaefer Energy Projects (Pty) Ltd 152
Kwikspace Modular Buildings (Pty) Ltd 154
M C E Fabrication and Construction (Pty) Ltd 156
Malinga Scaffolding and Formowork (Pty) Ltd 158
Mazor Group (Pty) Ltd 160
Motheo Construction Group (Pty) Ltd 163
Pezula Access Scaffolding (Pty) Ltd 165
Power Construction (Pty) Ltd 166
ProFix Scaffolding (Pty) Ltd 169
Ramutsa Rail CC 171
Raubex Group Ltd 173
Ro-Al Construction (Pty) Ltd 178
SA Scaffold Manufacturing (Pty) Ltd 180
South African National Roads Agency SOC Ltd (The) 182
Stefanutti Stocks Holdings Ltd 185
TCM Developments (Pty) Ltd 189
Tiber Construction (Pty) Ltd 191
Tisang Group (Pty) Ltd 193
TN Molefe Construction (Pty) Ltd 195
Top Fix (Pty) Ltd 197
Trencon Construction (Pty) Ltd 199
Umso Construction (Pty) Ltd 201
Viva Formwork and Scaffolding (Cape Town) (Pty) Ltd 203
Waco Africa (Pty) Ltd 205
Wilson Bayly Holmes-Ovcon Ltd 209
WK Construction (Pty) Ltd 214
WK Construction South Africa (Pty) Ltd 216
Wood South Africa (Pty) Ltd 218

Report Coverage

This report focuses on the construction industry in South Africa and includes comprehensive information on the state and size of the sector, developments, corporate actions and influencing factors. There are profiles of 58 companies that include major JSE-listed players such as Murray & Roberts, Wilson Bayly Holmes-Ovcon and Raubex. Other profiled companies include Concor, formerly Murray & Roberts Construction, owned by a consortium led by the Southern Palace Group, Calgro M3, which is involved in affordable housing and memorial parks markets and Isowall, the largest producer of structural insulated panels in South Africa.

Introduction

The South African construction sector contributed over R427.3bn to gross fixed capital formation in construction (GFCFC) in 2019. The industry is a driver of socio-economic development and a key employment multiplier, yet despite its strategic importance, infrastructure expenditure has declined and a number of public sector projects have been mothballed over the past decade, leaving it substantially weakened. With the coronavirus crisis having dealt a crushing blow to an industry already in distress, role players warn that thousands of jobs in the construction sector and its value chain are at risk. As part of its plan to revive an economy devastated by the coronavirus pandemic, the South African government has announced a massive infrastructure development programme. Stakeholders say that urgent implementation is critical if the economy and the construction sector are to recover.

Strengths

• Barriers to entry for small and micro-sized companies are low.
• Construction is a key driver of socio-economic development.
• Government has prioritised the development of SMEs and companies owned by historically disadvantaged people.
• The construction industry is a strategic sector serving all sectors of the economy.
• The industry is one of the country’s largest creators of employment.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption is pervasive.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour and it is often difficult to retain professionals with specialist skills.
• There is a high level of reliance on the public-sector.
• There is generally a low level of regulatory compliance.

Opportunities

• 3D printing of building materials and structures.
• Green building systems offer growth opportunities.
• The creation of micro-living solutions.
• The development of affordable housing.
• The development of drone services for the autonomous handling of materials on construction sites.
• The rollout of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures for low-cost housing, healthcare facilities, etc.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into residential units and healthcare facilities.

Threats

• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic and global economic recessionary pressures.
• Escalation in geopolitical tensions.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Land invasions, illegal occupation of building sites and violent disruption of construction works.
• Uncertainty relating to the implementation of the land expropriation without compensation policy.
• Workforce health and safety risks, project delays, contract cancellations and supply chain disruptions relating to the coronavirus pandemic.

Outlook

The impact of the coronavirus pandemic has highlighted the urgent need to provide affordable housing and improve the delivery of basic services to vulnerable communities. Stakeholders have welcomed the South African government’s increased focus on infrastructure development as part of its post-pandemic economic recovery plan. Master Builders South Africa executive director Roy Mnisi has welcomed the gazetting of the initial tranche of strategic infrastructure projects, but has expressed concern that local authorities could hinder their implementation, as has occurred in the past. Mnisi said that the association and its members were “ready and available to help government roll out these projects.” With 50 “shovel-ready” projects set to break ground in the spring, local contractors are cautiously optimistic that the beleaguered construction industry’s fortunes could be turning.

Read More..
The Construction Industry in South Africa
The Construction Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 6
2.2. Geographic Position 7
3. SIZE OF THE INDUSTRY 8
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 15
4.1.2. Regulations 16
4.1.3. Enterprise Development and Social Economic Development 20
4.2. Continental 23
4.3. International 28
5. INFLUENCING FACTORS 30
5.1. Coronavirus 30
5.2. Economic Environment 32
5.3. Government Support and Public Infrastructure Expenditure 33
5.4. Corruption 34
5.5. Rising Input Costs 35
5.6. Environmental Concerns 35
5.7. Labour 37
5.8. Cyclicality 42
5.9. Technology, Research and Development (R&D) and Innovation 42
6. COMPETITION 44
6.1. Barriers to Entry 45
7. SWOT ANALYSIS 46
8. OUTLOOK 47
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 48
10.1. Publications 48
10.2. Websites 49
APPENDIX 1 51
Summary of Notable players 51
COMPANY PROFILES 67
ARNOTT PANELS (PTY) LTD 67
AVENG LTD 69
AXSYS PROJECTS (PTY) LTD 74
BASIL READ HOLDINGS LTD 75
BILFINGER INTERVALVE AFRICA (PTY) LTD 79
BLUHM BURTON ENGINEERING (PTY) LTD 81
BOSCH PROJECTS (PTY) LTD 83
CALGRO M3 HOLDINGS LTD 85
CAPE SCAFFOLDING CONTRACTORS (PTY) LTD 90
CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 92
COLAS AFRICA HOLDINGS (PTY) LTD 94
CONCOR CONSTRUCTION (PTY) LTD 96
CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD 99
DIABOR (PTY) LTD 101
EDWIN CONSTRUCTION (PTY) LTD 103
ENZA CONSTRUCTION (PTY) LTD 105
ESOR LTD 107
EXR CONSTRUCTION (PTY) LTD 110
FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD 113
FIKILE CONSTRUCTION (PTY) LTD 115
FLUOR SOUTH AFRICA (PTY) LTD 117
GAUTENG PILING (PTY) LTD 119
GEOMECHANICS (PTY) LTD 121
GIURICICH BROS CONSTRUCTION (PTY) LTD 123
GROUP FIVE CONSTRUCTION (PTY) LTD 125
HATCH AFRICA (PTY) LTD 130
HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD 133
INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD 135
ISOWALL SOUTHERN AFRICA (PTY) LTD 137
KAEFER ENERGY PROJECTS (PTY) LTD 139
LAKESHORE TRADING 102 CC 141
M C E FABRICATION AND CONSTRUCTION (PTY) LTD 142
MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD 144
MAZOR GROUP LTD 145
MOTHEO CONSTRUCTION GROUP (PTY) LTD 148
MURRAY AND ROBERTS HOLDINGS LTD 150
POWER CONSTRUCTION (PTY) LTD 154
PRO FIX ROBOR (PTY) LTD 156
RAMUTSA RAIL CC 158
RATEHANG PROJECTS CC 160
RAUBEX GROUP LTD 162
RO-AL CONSTRUCTION (PTY) LTD 167
SA SCAFFOLD MANUFACTURING (PTY) LTD 169
SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 171
STEFANUTTI STOCKS HOLDINGS LTD 174
TCM DEVELOPMENTS (PTY) LTD 179
TIBER CONSTRUCTION (PTY) LTD 181
TISANG GROUP (PTY) LTD 183
TN MOLEFE CONSTRUCTION (PTY) LTD 185
TOP FIX (PTY) LTD 187
TRENCON CONSTRUCTION (PTY) LTD 189
UMSO CONSTRUCTION (PTY) LTD 191
VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD 193
VNA PILING CC 195
WACO AFRICA (PTY) LTD 197
WILSON BAYLY HOLMES-OVCON LTD 201
WK CONSTRUCTION (PTY) LTD 206
WK CONSTRUCTION SOUTH AFRICA (PTY) LTD 208
WOOD SOUTH AFRICA (PTY) LTD 210

Introduction

The South African construction industry serves all sectors of the economy and is a key driver of socio-economic development. With total nominal expenditure on construction works and related activities amounting to more than R430.2bn in 2018, the sector is of great strategic importance to the country. However, the protracted economic downturn and reduced levels of public infrastructure investment have exacted a heavy toll on contractors, including most of the industry’s major players, compelling some to focus on different markets and others to file for business rescue. Stakeholders warn that the decline of the industry has been exacerbated by the marked increase in land invasions, acts of violence and extortionist activity on construction sites across the country. With construction output in decline, Statistics South Africa (Stats SA) reports that the construction sector shed around 142,000 jobs in the first quarter of 2019. Moreover, with the advent of the fourth industrial revolution and the development of technologies that make ‘smart’ buildings even more ‘intelligent', some commentators say that South Africa’s construction industry is experiencing unprecedented disruption.

Strengths

• Barriers to entry for small and micro-sized companies are low.
• Government has prioritised the development of SMMEs and contracting firms owned by historically disadvantaged people.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The industry is one of the country’s largest sources of employment.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public-sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, green building techniques.
• Provision of technologies that offer 3D modelling and/or 3D video tours of construction sites and/or AI technologies that facilitate project visualisation and modelling.
• The creation of micro-living solutions.
• The development of drone services for the autonomous handling of materials on construction sites.
• The integration of data analytics in building management systems.
• The roll-out of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures in response to market demand for low-cost housing and energy efficiency.
• With the advent of the fourth industrial revolution, there is growing demand for ‘intelligent’ buildings and ‘smart’ cities.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic and global macroeconomic pressures.
• Escalation in geopolitical tensions.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Industrial instability, social upheaval, community protests and violent disruption on construction sites.
• Land invasions and illegal occupation of building sites.
• The increase in input costs resulting from the on-going trade war between the US and China.
• Uncertainty over policies such as land expropriation without compensation, which could deter investors.

Outlook

Although Fitch forecasts that the South African construction sector will grow by 2.4% in 2019, extremely challenging trading conditions are expected to persist into 2020. The low-growth environment is likely to impede the recovery of the construction industry’s financially distressed companies. However, many stakeholders are optimistic that the transformation of the construction sector will gather momentum under the new government administration and that emerging contractors will play a more prominent role in the rebuilding of South Africa. With smart cities on the rise, demand for building management systems is expected to increase. Following the recent appointment of Patricia De Lille as minister of Public Works and Infrastructure, some role players say that there could be a significant shift in the fortunes of the sector if the opposition politician follows through on her election campaign promise to fast-track land restitution by releasing state-owned properties for development. As the custodian of almost two million hectares of state-owned land and over 90,000 public buildings, De Lille is poised to perform a pivotal role in the long-awaited roll-out of public infrastructure projects and the spatial transformation of South African cities.

The Construction Industry in South Africa
The Construction Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION 1
2.1. Value Chain 6
2.2. Geographic Position 7
3. SIZE OF THE INDUSTRY 8
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 16
4.1.2. Regulations 18
4.1.3. Enterprise Development and Socio-Economic Development 21
4.2. Continental 25
4.3. International 30
5. KEY INFLUENCING FACTORS 32
5.1. Economic Environment 32
5.2. Government Initiatives and Public Infrastructure Expenditure 33
5.3. Rising Input Costs 34
5.4. Labour 35
5.5. Corruption 38
5.6. Cyclicality 38
5.7. Technology, Research and Development (R&D) and Innovation 39
5.8. Environmental Concerns 42
5.9. Health and Safety Concerns 44
5.10. The Supply and Quality of Building Materials 44
6. COMPETITION 45
6.1. Barriers to Entry 46
7. SWOT ANALYSIS 46
8. OUTLOOK 48
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 49
10.1. Publications 49
10.2. Websites 50
APPENDIX 1 52
Summary of Notable Players 52
COMPANY PROFILES 69
ARNOTT PANELS (PTY) LTD 69
AVENG LTD 71
AXSYS PROJECTS (PTY) LTD 75
BASIL READ HOLDINGS LTD 77
BILFINGER INTERVALVE AFRICA (PTY) LTD 81
BLUHM BURTON ENGINEERING (PTY) LTD 83
BOSCH PROJECTS (PTY) LTD 85
CALGRO M3 HOLDINGS LTD 87
CAPE SCAFFOLDING CONTRACTORS (PTY) LTD 92
CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 94
COLAS AFRICA HOLDINGS (PTY) LTD 97
CONCOR CONSTRUCTION (PTY) LTD 99
CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD 102
DIABOR (PTY) LTD 104
EDWIN CONSTRUCTION (PTY) LTD 106
ENZA CONSTRUCTION (PTY) LTD 108
ESOR LTD 110
EXR CONSTRUCTION (PTY) LTD 113
FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD 116
FIKILE CONSTRUCTION (PTY) LTD 118
FLUOR SOUTH AFRICA (PTY) LTD 120
GAUTENG PILING (PTY) LTD 122
GEOMECHANICS (PTY) LTD 124
GIURICICH BROS CONSTRUCTION (PTY) LTD 126
GROUP FIVE CONSTRUCTION (PTY) LTD 128
HATCH AFRICA (PTY) LTD 134
HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD 137
INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD 140
ISOWALL SOUTHERN AFRICA (PTY) LTD 142
KAEFER ENERGY PROJECTS (PTY) LTD 144
KUNTWELA ENZANSI VENTURES (PTY) LTD 146
LAKESHORE TRADING 102 CC 148
M C E FABRICATION AND CONSTRUCTION (PTY) LTD 149
MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD 151
MAZOR GROUP LTD 153
MOTHEO CONSTRUCTION GROUP (PTY) LTD 156
MURRAY AND ROBERTS HOLDINGS LTD 158
POWER CONSTRUCTION (PTY) LTD 162
PRO FIX ROBOR (PTY) LTD 164
RAMUTSA RAIL CC 166
RATEHANG PROJECTS CC 168
RAUBEX GROUP LTD 170
RO-AL CONSTRUCTION (PTY) LTD 175
S K S BUSINESS SOLUTIONS CC 177
SA SCAFFOLD MANUFACTURING (PTY) LTD 179
SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 181
STEFANUTTI STOCKS HOLDINGS LTD 184
TCM DEVELOPMENTS (PTY) LTD 189
TIBER CONSTRUCTION (PTY) LTD 191
TISANG GROUP (PTY) LTD 193
TN MOLEFE CONSTRUCTION (PTY) LTD 195
TOP FIX (PTY) LTD 197
TRENCON CONSTRUCTION (PTY) LTD 199
UMSO CONSTRUCTION (PTY) LTD 201
VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD 203
VNA PILING CC 205
WACO AFRICA (PTY) LTD 207
WILSON BAYLY HOLMES-OVCON LTD 211
WK CONSTRUCTION (PTY) LTD 216
WK CONSTRUCTION SOUTH AFRICA (PTY) LTD 218
WOOD SOUTH AFRICA (PTY) LTD 220

Report Coverage

Profiled in the report on the South African construction sector are 67 companies ranging from major listed players and their subsidiaries to building and civil construction start-ups identified through the South African government’s National Gazelles Programme. These include TCM Developments and Lakeshore Trading, a general construction and renovations company that employs 22 people. Also profiled are TN Molefe Construction (Pty) Ltd and the newly incorporated emerging company, Axsys Projects, which have entered into a development alliance with Stefannuti Stocks under the Voluntary Rebuilding Programme.

Introduction

South Africa’s beleaguered construction industry remained under pressure during the final quarter of 2017, with general building and civil construction contractor confidence indices tumbling sharply. However, following the inauguration of Cyril Ramaphosa as President of South Africa, the mood appears to have lifted. Delivering his maiden State of the Nation (SONA) address in February 2018, President Ramaphosa stated that investment in infrastructure was central to the restoration of economic growth, service delivery and job creation. President Ramaphosa also announced that his administration would be assembling a team tasked with accelerating the implementation of new projects, notably in the critical areas of water infrastructure, health and road maintenance. The empowerment of South Africa’s small, medium and micro-sized enterprises (SMMEs) remains a key priority for the Ramaphosa administration. With the restructuring and transformation of the South African construction sector gaining momentum, emerging contractors are poised to play a pivotal role in the rebuilding of the nation.

Strengths

• Barriers to entry for small and micro-sized firms are low.
• South Africa’s construction industry is one of the country’s largest sources of employment.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The development of SMMEs and contracting firms owned by historically disadvantaged persons has been prioritised by the South African government.

Weaknesses

• Contracts are often poorly managed and project delays are common.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• Quality control is often sub-standard, particularly amongst smaller contractors.
• There is a high level of reliance on the public sector.
• There is a shortage of skilled labour and retaining professionals with specialist skills remains a challenge.

Opportunities

• Construction of new facilities and the maintenance of existing institutions in the education and health sectors.
• Development of transport networks, notably the rehabilitation and maintenance of existing road networks.
• Public infrastructure projects, notably those relating to the supply of water, sanitation and sewerage; energy; and telecommunications.
• The development of industrial development zones.
• The roll-out of social housing projects, recreational amenities and other facilities.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Industrial instability and social upheaval.
• Macroeconomic pressures.

Outlook

South Africa’s Ministry of Finance has upwardly revised the country’s GDP growth projection and the South African economy is forecast to grow by at least 1.5% in 2018. While many stakeholders do not expect conditions in the construction industry to improve significantly over the medium-term, some role players anticipate that the sector will regain momentum under the Ramaphosa administration. Although the 2018/19 National Budget cuts will effectively rein in public expenditure on large projects, commentators say that the recently established Budget Facility for Infrastructure (BFI) is likely to enhance and standardise the management of public infrastructure projects. With the implementation of preferential public procurement legislation and the steady emergence of previously marginalised players, disruption in the South African construction industry is expected to continue.

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The Construction Industry in South Africa
The Construction Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION 1
2.1. Classification of Contractors 2
2.2. Core Building and Construction Activities 4
2.3. Value Chain 5
2.4. Geographic Position 6
3. SIZE AND VALUE OF THE SOUTH AFRICAN CONSTRUCTION MARKET 8
4. STATE OF THE INDUSTRY 31
4.1. Local 31
4.1.1. Corporate Actions 32
4.1.2. Regulatory Developments 33
4.1.3. Enterprise Development and Socio-Economic Development 36
4.2. Continental 40
4.3. International 43
5. KEY INFLUENCING FACTORS 45
5.1. Economic Environment 45
5.2. Government Initiatives and Public Infrastructure Expenditure 46
5.3. Rising Input Costs 47
5.4. Labour 47
5.5. Corruption 52
5.6. Cyclicality 52
5.7. Technology, Research and Development (R&D) and Innovation 52
5.8. Environmental Concerns 55
6. COMPETITION 57
6.1. Barriers to Entry 58
7. SWOT ANALYSIS 59
8. OUTLOOK 60
9. INDUSTRY ASSOCIATIONS 60
10. REFERENCES 61
10.1. Publications 61
10.2. Websites 63
APPENDIX 1 66
CIDB General Building Contractor Survey Results: Grades 3-8 66
APPENDIX 2 67
CIDB Civil Construction Contractor Survey Results: Grades 3-8 67
COMPANY PROFILES 68
AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD 68
ARNOTT PANELS (PTY) LTD 70
AVENG LTD 72
AXSYS PROJECTS (PTY) LTD 76
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
EDWIN CONSTRUCTION (PTY) LTD 109
ENZA CONSTRUCTION (PTY) LTD 111
ESOR LTD 113
EXR CONSTRUCTION (PTY) LTD 116
FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD 119
FIKILE CONSTRUCTION (PTY) LTD 121
FLUOR SOUTH AFRICA (PTY) LTD 123
GAUTENG PILING (PTY) LTD 126
GEOMECHANICS (PTY) LTD 128
GIURICICH BROS CONSTRUCTION (PTY) LTD 131
GLENKEY CONSTRUCTION (PTY) LTD 133
GROUP FIVE CONSTRUCTION (PTY) LTD 135
HATCH AFRICA (PTY) LTD 143
HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD 145
INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD 148
ISCMATLA (PTY) LTD 150
ISOWALL SOUTHERN AFRICA (PTY) LTD 152
KAEFER ENERGY PROJECTS (PTY) LTD 155
KUNTWELA ENZANSI VENTURES (PTY) LTD 157
LAKESHORE TRADING 102 CC 159
LIVIERO BUILDING (PTY) LTD 160
M C E FABRICATION AND CONSTRUCTION (PTY) LTD 163
MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD 164
MAZOR GROUP LTD 165
MOTHEO CONSTRUCTION GROUP (PTY) LTD 168
MURRAY AND ROBERTS HOLDINGS LTD 170
PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD 174
POWER CONSTRUCTION (PTY) LTD 176
RAMUTSA RAIL CC 178
RATEHANG PROJECTS CC 180
RAUBEX GROUP LTD 181
RO-AL CONSTRUCTION (PTY) LTD 185
ROBOR (PTY) LTD 187
S K S BUSINESS SOLUTIONS CC 190
SA SCAFFOLDING CC 191
SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE) 193
STEFANUTTI STOCKS HOLDINGS LTD 196
TCM DEVELOPMENTS (PTY) LTD 201
TIBER CONSTRUCTION (PTY) LTD 202
TISANG GROUP (PTY) LTD 205
TN MOLEFE CONSTRUCTION (PTY) LTD 206
TOP FIX (PTY) LTD 208
TRENCON CONSTRUCTION (PTY) LTD 211
UMSO CONSTRUCTION (PTY) LTD 212
UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD 214
VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD 216
VNA PILING CC 218
WACO AFRICA (PTY) LTD 220
WILSON BAYLY HOLMES-OVCON LTD 224
WK CONSTRUCTION (PTY) LTD 228

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.

Introduction

The South African construction industry is a strategic sector that supports the government’s National Development Plan (NDP). Related activities covered in this report include formwork and scaffolding solutions, as well as structural insulated panel systems (SIPS). In 2016 total nominal expenditure on construction works and related activities totalled around R420bn and the sector generated an estimated 1,483,000 employment opportunities across the formal and informal sectors. Delivering his medium-term budget in October 2017, Finance Minister Gigaba announced that R948bn had been earmarked for public infrastructure investment in South Africa over the next three years. However, with the construction sector having shed 140,000 jobs between the first and third quarters of 2017, some role players warn that the industry has entered a highly precarious period.

Strengths

• South Africa’s construction industry is one of the country’s largest sources of employment.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The sector’s major players are established companies with offices across Africa, as well as in other countries across the globe.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, ‘green’ building techniques.
• Provision of technologies that offer 3D modelling and/or 3D video tours of construction sites, as well as technologies that facilitate project visualisation.
• The creation of integrated micro-living solutions.
• The development of drone services for the autonomous handling of materials on construction sites.
• The implementation of advanced 3D-printing building technologies.
• The roll-out of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures and SIPS, in response to market demand for low-cost housing and new energy efficiency legislation.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic political and economic instability, as well as global geopolitical and macroeconomic pressures.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Industrial unrest and social upheaval.

Outlook

The second decade of the 21st century is proving to be an extremely challenging period for contractors operating in South Africa’s construction sector. Declining demand and adverse business conditions continue to exact a heavy toll on the profitability of the industry. Some role players caution that ‘green shoots’ are few and that declining demand for civil construction and other building work does not bode well for the future growth prospects of the sector. They warn that if negative conditions persist, other key players could follow the lead of former industry giant, Murray & Roberts, and exit South Africa’s construction sector. However, while the short-term outlook appears bleak, several stakeholders believe that positive initiatives to fast-track transformation will support the recovery of the industry, which, in turn, will be better positioned to support the country’s 2030 infrastructure development goals.

Read More..
The Construction Industry in South Africa
The Construction Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
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

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.

Introduction

This report focuses on the South African construction industry and related activities, including scaffolding solutions and structurally insulated panel systems (SIPs). 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. However, the beleaguered sector remains stifled by the prevailing economic slowdown. Moreover, with a number of major construction companies currently facing damages claims for anti-competitive behaviour filed by the state-owned South African National Roads Agency (SANRAL), the spectre of collusive conduct continues to hover over some of the sector’s leading players. With the impending exit from the sector of Murray & Roberts, a construction titan that has been an integral part of the South African building and construction landscape since 1902, the industry has been dealt a further blow.

Strengths

• The construction industry is viewed as a strategic sector as it serves all sectors of the economy and provides over 500,000 direct jobs in the formal sector.
• The sector’s major players are established companies with offices across Africa, as well as in other countries across the globe.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often sub-standard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, ‘green’ building techniques.
• Renewable energy projects.
• The roll-out of infrastructure development projects in South Africa, on the continent and offshore.
• The uptake of advanced 3D-printing building technologies.
• The uptake of SIPs, which is largely driven by market demand for low-cost housing and new energy efficiency legislation.
• The use of plastic interlocking bricks in social housing programmes.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic political and economic instability, as well as global geopolitical and macroeconomic pressures.
• Exchange rate volatility.
• Industrial unrest and social upheaval.

Outlook

The construction industry is facing fundamental disruption, as advanced 3D-printing solutions, nanotechnology and robotics start to make inroads into the sector. Several commentators warn that job losses are inevitable and are urging construction companies to take proactive measures to upskill their employees. Meanwhile new innovations in the sector, notably the construction of affordable housing from recycled plastic waste, offer positive solutions to critical challenges facing South Africa and other developing nations. Against a backdrop of countrywide social and political upheaval, coupled with the prospect of the possible downgrading of South Africa by international ratings agencies to ‘junk status’, many analysts predict that the local construction sector is likely to remain under pressure. Stakeholders say that if the situation is to improve, substantial investment in infrastructure is required. Some analysts believe that the sector could regain momentum in the short-term, as government endeavours to implement the long-awaited NDP before South Africans go to the polls in 2019.

Read More..
The Construction Industry in South Africa
The Construction Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $522.91 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
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

Report Coverage

This report on the construction industry in South Africa focuses on conditions in the local sector, recent developments and factors influencing the success of the sector. The report also profiles more than 100 companies, ranging from the listed Aveng Limited group, the country’s largest construction and engineering company by revenue which has 31,768 employees, to unlisted Tiber Bonvec Construction (Pty) Ltd, which employs 210 people and is involved in the construction of Triple A office blocks, warehouses, distribution centres and shopping centres.

Introduction

This report focuses on South Africa’s construction industry. It includes information on the manufacture and use of Structurally Insulated Panels (SIPs) and also provides a synopsis of scaffolding solutions and service providers. The construction sector is of strategic importance as it serves all sectors of the economy and is highly labour-intensive, providing employment to over 1 million people across both the formal and informal sectors of the South African economy. According to Statistics South Africa, the value added by South Africa’s construction industry to the country’s GDP amounted to R138.9bn in 2014. Its image tarnished by collusion scandals involving several leading players in the sector, South Africa’s embattled construction industry continues to find itself under pressure. Although the 2015 National Budget has earmarked R274bn for public sector infrastructure projects in the current fiscal year, stakeholders warn that further delays in project implementation could result in substantial job losses.

Strengths

• The construction industry is viewed as a strategic sector as it serves all sectors of the economy and provides over 1 million jobs.
• The sector’s major players are established companies with offices across Africa, as well as offshore interests.
• There is a strong culture of small business development.

Weaknesses

• Corruption and tender fraud is not uncommon in the industry.
• Profit margins are narrow.
• There is a high level of reliance on the public-sector.
• There is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is generally a low level of regulatory compliance particularly among smaller contractors.

Opportunities

• Implementation of green building techniques.
• Infrastructure development projects in Africa and offshore.
• New product lines and innovations such as SIPs, driven by market demand for low-cost housing and new energy efficiency legislation.
• Renewable energy projects.
• Roll-out of 3D-printing building technologies.

Threats

• Delayed implementation of projects and/or the failure to implement proposed public sector infrastructure development projects.
• Exchange rate and commodity price volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments. Domestic and global recessionary pressures.
• Labour instability.
• Power shortages.

Outlook

South Africa’s budget for the construction, rehabilitation and maintenance of public infrastructure over the current medium-term expenditure framework period has been downwardly revised from R847.3bn to R813.1bn. While the erosion of funds allocated for infrastructure is a significant concern, one of the key issues articulated by stakeholders is the South African government’s failure to implement the roll-out of large-scale projects as envisaged in the National Development Plan. Stakeholders warn that the implications of further project delays will be felt throughout the value chain and will result in substantial job losses. Muted economic growth, public sector inefficiency, electricity disruptions and labour instability, compounded by the weakness of both the local currency and global commodity prices, make for a market that is not conducive to investment growth. Many analysts warn that private investors will increasingly seek better returns beyond South Africa’s borders. Large-scale private sector projects under development or in the pipeline that are expected to provide a much-needed boost to the industry include the R84bn Chinese-financed development in Modderfontein, Johannesburg, which has been dubbed the “new Manhattan of Africa,” the 116,000m² Mall of Africa in Waterfall Estate Midrand, 90,000m² of new build to Fourways Mall in Johannesburg’s northern suburbs, the R11bn Vaal River City and the R6.5bn Steyn City Property Development in Fourways, Johannesburg.

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The Construction Industry in South Africa
The Construction Industry in South Africa 2015

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Industry Landscape

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The Construction industry in South Africa 2022-08-16

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The Construction Industry in South Africa 2020-09-29

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The Construction Industry in South Africa 2019-07-16

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The Construction Industry in South Africa 2018-04-04

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The Construction Industry in South Africa 2017-12-12

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The Construction Industry in South Africa 2016-10-24

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Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 5
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 14
4.1.2. Regulations and Government Programmes 17
4.1.3. Enterprise Development and Socio-Economic Development 21
4.2. Continental 23
4.3. International 27
5. INFLUENCING FACTORS 30
5.1. Economic Environment 30
5.2. Government Infrastructure Programme Spend 31
5.3. Input Costs 32
5.4. Labour 32
5.5. Supply and Quality of Building Materials 37
5.6. Health and Safety Concerns 37
5.7. Information Technology 38
5.8. Technology 39
5.9. Cyclicality 39
5.10. Environmental Concerns 40
5.11. Corruption 42
6. COMPETITION 43
6.1. Barriers to Entry 44
6.2. Innovation 45
6.3. Research and Development (R&D) 46
7. SWOT ANALYSIS 47
8. OUTLOOK 47
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 49
10.1. Publications 49
10.2. Websites 50