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The South African Construction Industry
BY Carole Veitch
South Africa
16 July 2019
R 14 400.00 (ZAR)  
estimated $ 1 011.83 (USD) *
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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.


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.


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