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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.

The Construction Sector in South Africa

The construction sector contributed 2.7% of total GDP, with the largest share contributed by construction works/civil engineering, followed by residential buildings and non-residential buildings. Although companies continue to experience headwinds, role players say there are some green shoots. Construction industry players have welcomed government’s announcement in February 2022 of infrastructure investment of more than R810bn over the next three years, but say that rapid implementation is critical as the industry cannot afford further delays.

Government Support and Investment

The rollout of government’s infrastructure projects has been undermined by maladministration and corruption, project delays, cost overruns, poor project management and sub-standard workmanship in many cases. South Africa’s National Infrastructure Plan (NIP) 2050 has identified the energy and water sectors for development in the short term and transport in the medium term. There is a massive backlog of social housing and an estimated 20% of urban households live in informal settlements.

Challenges

The execution of construction projects has been severely affected by supply chain delays, shortages and higher costs related largely to the pandemic and the war in Ukraine. Corruption and irregular procurement have become endemic in the construction sector. Construction mafia and extortion groups present a substantial threat to the industry. Shortages of building materials, compounded by soaring transport costs and inflation, are driving up construction costs and resulting in cost overruns.

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The Construction industry in South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $507.31 (USD)*

Industry Overview

R 6 650.00(ZAR) estimated $ 355.12 (USD)*

Historical Reports

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

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The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (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 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.

The Construction Industry in South Africa

The South African construction sector is a driver of socio-economic development and a key employment multiplier, yet despite its strategic importance, declining infrastructure expenditure and mothballed public sector projects have affected the sector. In 2019, the value added by the construction sector accounted for around 4% of GDP and it employed well over 1.3 million people.

Industry Performance

The ailing construction industry experienced a turbulent decade and was in distress prior to the onset of the coronavirus crisis. Its performance has been exacerbated by a decline in government and private sector investment. Some local construction companies have diversified into other sectors, while others have gone out of business or sold their local construction business to focus on other markets. Construction companies under business rescue include Basil Read, Esor Construction and Group Five.

Coronavirus

The construction industry was not classified as an essential service prior to the 27 March 2020 lockdown. With the exception of construction services relating to the health sector and urgent repairs and maintenance, work on construction sites was suspended, and projects have slowly resumed with the phased reopening of the economy. The impact of the pandemic on major construction companies has varied, as many operate in other countries. Given the impact of the lockdown on the economy, analysts anticipate that demand for general building services will remain severely constrained over the short term and possibly the medium term.

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The Construction Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

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

Report Coverage

This report covers the South African Construction Industry including structural insulated panel systems, scaffolding and building management systems. This report includes comprehensive information on the size and state of the industry, the factors influencing it and corporate actions and business, regulatory, continental and international updates and information. There are 69 company profiles including of Wilson Bayly Holmes-Ovcon, the largest South African construction and engineering company listed on the JSE and other listed companies such as Murray & Roberts, Raubex, Calgro M3, Stefanutti Stocks and Aveng. It includes profiles on companies in business rescue such as Group Five, Basil Read and Esor and public entities such as the South African National Roads Agency.

The South African Construction Industry

With total expenditure on construction works and related activities amounting to more than R430.2bn in 2018, the South African construction 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. The decline of the industry has been exacerbated by the marked increase in land invasions, acts of violence and extortionist activity on construction sites.

Sector Decline

Statistics South Africa reports that the construction sector shed around 142,000 jobs in the first quarter of 2019. While the sector still employs over 8% of the country’s labour force and construction output accounts for around 4% of gross domestic product, the sector is under significant pressure as spending on infrastructure declined, the local economy failed to grow and concerns mounted about the expropriation of land without compensation. The industry is experiencing shrinking profit margins, cost overruns, labour disruptions and poor productivity, a shortage of skilled workers and the rising cost of inputs. Turnover in the construction sector declined 8.6% year-on-year in the fourth quarter of 2018, while real growth in construction activity slowed to 1.1% year-on-year, down from 2.3% in the previous quarter.

Read More..
The Construction Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

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.

The South African Construction Sector

The South African Construction sector focuses on all major contractors as well as emerging small, medium and micro-sized enterprises (SMMEs) that include formal contractors registered with the Construction Industry Development Board (CIDB) and non-registered micro-contractors that operate informally. Government-led initiatives to transform the sector and support the empowerment of SMMEs have resulted in significant restructuring of the industry and the emergence of new players. Smaller building companies, largely involved in the residential building market, are set to benefit from the government’s drive to empower SMMEs while emerging building contractors are expected to become increasingly involved in small-scale and medium-scale public projects.

Current Conditions

South Africa’s 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 recent 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. Although the amount allocated to large public infrastructure projects in the February 2018 Budget decreased by 12% in nominal terms down to R834.1bn, stakeholders expressed optimism that the amount would be spent on much-needed infrastructure projects.

Read More..
The Construction Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

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.

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.

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The Construction Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (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.

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.

Read More..
The Construction Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

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.

The South African Construction Sector

The South African construction sector is an important one as it serves all sectors of the economy and is highly labour-intensive. During 2014 the construction industry contributed R138.9bn to the country’s GDP and provided employment to more than 1 million people. As at 30 July 2015, 128,929 projects had been registered with the regulatory body, the Construction Industry Development Board (CIDB).

A sector Under Pressure

Even though the industry contributed 4% to nominal GDP in Q2 2015, South Africa’s construction sector has been described as a sector under pressure. The contraction in the value of new infrastructure development projects from R187.bn in 2013 to R94.4bn during 2014 is significant. Public sector projects accounted for only 11% of 2014’s total spend and the budget for public infrastructure over the current medium-term expenditure framework (MTEF) period was downwardly revised from R847.3bn to R813.1bn. Although the 2015 National Budget has earmarked R274bn for public sector infrastructure projects in the current fiscal year, stakeholders fear that delays in project implementation are a possibility and will result in substantial job losses. Dogged by project delays, labour disruptions and shrinking profit margins, the construction sector’s leading players are increasingly seeking opportunities beyond the borders of South Africa.

Read More..
The Construction Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Construction industry in South Africa 2022-08-16

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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