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Wholesale and Retail Trade in Construction Materials
BY Duncan Bekker
South Africa
06 March 2020
R 14 400.00 (ZAR)  
estimated $ 867.79 (USD) *
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Wholesale and Retail Trade in Construction Materials


Building materials are a key input for residential and commercial building, as well as large civil engineering projects. The construction materials trade, with sales nearing R200bn in 2019, employs over 45,000 people and has important linkages with downstream mining and manufacturing. Players face rising competition and an increasingly challenging trading environment due to low economic growth and the decline of the construction sector.


Building and Construction Decline


The trade in construction materials has been affected by South Africa’s prolonged economic stagnation and the ongoing weakness in the building and construction sectors. A number of construction companies applied for business rescue since 2018, including Basil Read, the Liviero Group, Esor Construction, and Group Five. Confidence among materials distributors, building contractors, and construction companies reached record lows in 2019 as building activity, and demand for key building materials such as cement, continued to decline.


Earnings Pressure


Revenue in the retail and hardware segments of the market has been affected by constrained consumer spending, while increasing costs have eroded profit margins, particularly among manufacturers. Import competition, particularly for cement and steel products, is also on the rise. Building materials retailers have described their operating environment as very challenging and their revenue growth, which averaged over 10% in 2016, has declined markedly in the past two years. Operating margins are under pressure and organic growth at existing stores has fallen due to reduced contractor demand, low building activity, and constrained consumer spending.


Report Coverage


This report examines the wholesale and retail trade in construction materials in South Africa and provides an analysis of several key products in the industry including cement, steel, glass, bricks, tiles, paint and wood. There are profiles of 173 companies including retailers such as Italtile and Cashbuild and key wholesalers such as PPC, Afrisam, Macsteel, Afrimat and Corobrik. Other companies profiled include independent hardware companies such as Brights Hardware, which merged with Cape Engineering Supplies.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 14
4.1. Local 14
4.1.1. Corporate Actions 26
4.1.2. Regulations 27
4.1.3. Enterprise Development and Socio-Economic Development 29
4.2. Continental 30
4.3. International 33
5. INFLUENCING FACTORS 33
5.1. Economic Environment 33
5.2. Infrastructure Spending 34
5.3. Technology, Research and Development (R&D) and Innovation 36
5.4. Labour 37
5.5. Environmental Concerns 40
5.6. Cyclicality 41
6. COMPETITION 41
6.1. Barriers to Entry 42
7. SWOT ANALYSIS 43
8. OUTLOOK 44
9. INDUSTRY ASSOCIATIONS 44
10. REFERENCES 45
10.1. Publications 45
10.2. Websites 46
APPENDIX 1 48
Summary of Notable players 48
COMPANY PROFILES 69
A B BRICKWORKS (PTY) LTD 69
A HOLMAN TRADING COMPANY (PTY) LTD 71
ACTION BOLT (PTY) LTD 73
AEROTON STEEL (PTY) LTD 75
AFRIMAT LTD 77
AFRISAM (SOUTH AFRICA) (PTY) LTD 83
AKZO NOBEL POWDER COATINGS SOUTH AFRICA (PTY) LTD 88
ALLIED STEELRODE (PTY) LTD 90
ANDREW MENTIS (PTY) LTD 93
ARCELORMITTAL SOUTH AFRICA LTD 95
ARGENT INDUSTRIAL LTD 100
ARTMAR NATURAL STONE TILES CC 105
ASTRA FASTENERS (PTY) LTD 107
AUGUSTA STEEL (PTY) LTD 109
AUTOMATIC MASS PRODUCTION (PTY) LTD 111
AVENG LTD 113
AVLOCK INTERNATIONAL (PTY) LTD 118
B E D HOLDINGS (PTY) LTD 121
BALTIC TIMBER COMPANY (PTY) LTD 123
BAMBALELA BOLTS (PTY) LTD 124
BARNES REINFORCING INDUSTRIES (PTY) LTD 126
BASF COATINGS SERVICES (PTY) LTD 128
BASF SOUTH AFRICA (PTY) LTD 130
BEN COR (PTY) LTD 132
BIDVEST AFCOM (PTY) LTD 133
BMI COVERLAND (PTY) LTD 135
BOLT-TECH (PTY) LTD 137
BOLTFAST (PTY) LTD 138
BOLTLOCK MANUFACTURING AND SUPPLIES (PTY) LTD 140
BRAKKEFONTEIN CLAY PRODUCTS (PTY) LTD 142
BRANDCORP (PTY) LTD 144
BRIGHTS HARDWARE (PTY) LTD 147
BRIKOR LTD 149
BSI STEEL (PTY) LTD 153
BUILDING COMPANY (PTY) LTD (THE) 156
CAP STAR STEEL (PTY) LTD 162
CAPE GATE (PTY) LTD 164
CAPITAL AFRICA STEEL (PTY) LTD 167
CASHBUILD LTD 169
CBC FASTENERS (PTY) LTD 179
CHEMFIT (PTY) LTD 181
CHROMAFLO TECHNOLOGIES SOUTH AFRICA (PTY) LTD 183
CLOTAN STEEL (PTY) LTD 185
COEGA STEELS (PTY) LTD 187
COLUMBUS STAINLESS (PTY) LTD 189
CONNECTCO FASTENERS (PTY) LTD 191
CONSOLIDATED STEEL INDUSTRIES (PTY) LTD 193
COROBRIK (PTY) LTD 196
CREST OPERATIONS (PTY) LTD 200
DEKRO PAINTS (PTY) LTD 202
DIY DEPOT (PTY) LTD 205
DURAM (PTY) LTD 208
EAGLE ROOF TILES (PTY) LTD 210
EAST RAND FORGING (PTY) LTD 212
ECHO FLOORS (PTY) LTD 213
ECHO PRESTRESS (DURBAN) (PTY) LTD 215
ECHO PRESTRESS (PTY) LTD 217
EMV AFRICA (PTY) LTD 219
ESSENTRA COMPONENTS (PTY) LTD 222
EVERITE (PTY) LTD 224
FASTENER AND ALLIED (PTY) LTD 227
FASTENER FACTORY (PTY) LTD (THE) 229
FERRO SOUTH AFRICA (PTY) LTD 231
FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 234
FONTANA MANUFACTURERS (PTY) LTD 236
FORESTA TIMBER AND BOARD (PTY) LTD 238
GARSIN STEEL TUBE AND PIPE (PTY) LTD 240
GRAHAMSTOWN BRICK (PTY) LTD 242
HALL LONGMORE HOLDINGS (PTY) LTD 244
HAMMON FASTENERS (PTY) LTD 246
HARLEQUIN PAINT CC 248
HELLERMANNTYTON (PTY) LTD 250
HILTI (SOUTH AFRICA) (PTY) LTD 252
HUDACO TRADING (PTY) LTD 254
ICI DULUX (PTY) LTD 258
IMPALA BOLT AND NUT (PTY) LTD 261
INCA CONCRETE PRODUCTS (PTY) LTD 263
INDUSTRIAL METAL PROFILING CC 265
INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD 267
INSIMBI INDUSTRIAL HOLDINGS LTD 270
INVICTA HOLDINGS LTD 275
ITALTILE LTD 279
J J BRICKS (PTY) LTD 284
JACK'S PAINT AND HARDWARE (FRANCHISES) CC 286
JAGUAR METALS (PTY) LTD 288
JT AND T AGENCIES AND MAINTENANCE CC 290
K AND K PAINT MANUFACTURERS CC 292
KANSAI PLASCON AFRICA LTD 294
KAYDAV GROUP LTD 297
L K BRICK AND BLOCK MANUFACTURERS (PTY) LTD 300
LAFARGE INDUSTRIES SOUTH AFRICA (PTY) LTD 302
LAFARGE MINING SOUTH AFRICA (PTY) LTD 306
LANGKLOOF STEENWERWE (PTY) LTD 309
MACDONALD STEEL SA (PTY) LTD 310
MACNEIL (PTY) LTD 312
MACSTEEL SERVICE CENTRES SA (PTY) LTD 314
MALLS TILES (PTY) LTD 321
MARLEY (S A) (PTY) LTD 323
MASSMART HOLDINGS LTD 325
MAZISTA TILES (PTY) LTD 330
MAZOR GROUP LTD 332
MEDAL PAINTS (PTY) LTD 335
MESHCO (PTY) LTD 337
METROTILE (SOUTHERN AFRICA) (PTY) LTD 339
MICA INVESTMENTS (PTY) LTD 341
MITRE VENEERING CC 343
MYLAW CHEMICAL AND COATINGS (PTY) LTD 344
N J R STEEL HOLDINGS (PTY) LTD 345
NATIONAL CERAMIC INDUSTRIES SOUTH AFRICA (PTY) LTD 348
NATIONAL CONVERTING AGENCIES (PTY) LTD 350
NGQURA BRICK (PTY) LTD 352
NORCROS (S A) (PTY) LTD 354
NORTHERN HARDWARE AND GLASS (PTY) LTD 358
NPC INTERCEMENT (RF) (PTY) LTD 361
NSS FASTENERS (PTY) LTD 364
OOS-TRANSVAAL KALKVERSKAFFERS (PTY) LTD 366
PEARLSTOCK 2 (PTY) LTD 367
PERSIAN TILE CC 369
PG BISON (PTY) LTD 371
PG GROUP (PTY) LTD 374
PICK N PAY STORES LTD 378
POWDER-LAK (PTY) LTD 383
PPC LTD 385
PRO PAINT MANUFACTURING (PTY) LTD 390
PRO ROOF STEEL AND TUBE (PTY) LTD 392
PRO-TECH FASTENERS (PTY) LTD 394
PROMAC PAINTS (PTY) LTD 395
PROMINENT PAINTS (PTY) LTD 397
QWA-QWA WIRE PRODUCTS (PTY) LTD 399
R B FASTENERS (PTY) LTD 401
RALPH'S MIRROR AND GLASS (PTY) LTD 402
RAYAL INDUSTRIAL (PTY) LTD 403
RELIABLE BOLT (PTY) LTD 404
RHEEBOK BRICK OPERATIONS (PTY) LTD 405
RICKFORD INVESTMENTS (PTY) LTD 407
RITZ TILES (PTY) LTD 409
S A BLOCK (PTY) LTD 411
S A BOLT MANUFACTURERS (PTY) LTD 413
SA METAL GROUP (PTY) LTD 415
SAFFER PLUMBING AND HARDWARE (PTY) LTD 418
SAINT-GOBAIN CONSTRUCTION PRODUCTS SOUTH AFRICA (PTY) LTD 420
SANDVIK (PTY) LTD 422
SCAW SOUTH AFRICA (PTY) LTD 424
SCREW MAN (PRETORIA) CC (THE) 427
SHENKA INDUSTRIES CC 429
SHOPRITE HOLDINGS LTD 431
SIGMA COATINGS (PTY) LTD 436
SIKA SOUTH AFRICA (PTY) LTD 438
SPAR GROUP LTD (THE) 440
STEWARTS AND LLOYDS HOLDINGS (PTY) LTD 446
STONCOR AFRICA (PTY) LTD 449
SUN CHEMICAL (SOUTH AFRICA) (PTY) LTD 452
SWAGEFAST (PTY) LTD 454
SWAN ELECTRICAL AFRICA CC 456
SWARTLAND INVESTMENTS (PTY) LTD 457
T AND I CHALMERS ENGINEERING (PTY) LTD 459
T FERGUSON AND SONS (PTY) LTD 461
TEL-SCREW PRODUCTS (PTY) LTD 463
TOPFLOOR CONCRETE (PTY) LTD 465
TRANSVAAL PRESSED NUTS BOLTS AND RIVETS (PTY) LTD 467
TREATED TIMBER PRODUCTS (PTY) LTD 469
TRELLIDOR INNOVATIONS (PTY) LTD 472
ULTRALINE (PTY) LTD 474
UNION TILES (PTY) LTD 476
UNIVERSAL COATINGS (PTY) LTD 479
VERSUS PAINT SPECIALISTS (PTY) LTD 482
VOLTEX (PTY) LTD 484
W G WEARNE LTD 490
W P FASTENERS AND SERVICES CC 493
WEST END CEMENT BRICKS (PTY) LTD 495
WEST END CLAYBRICK (PTY) LTD 497
WURTH SOUTH AFRICA CO (PTY) LTD 499
YORK TIMBER HOLDINGS LTD 501