Report Coverage
The report on The Manufacture of Machinery for Mining, Quarrying and Construction describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 40 companies including market leaders Bell Equipment Ltd and Barloworld Ltd, the official dealer for Caterpillar construction and mining machines in southern Africa. Also profiled are Wuhlf Equipment (Pty) Ltd, active in the construction sector, and Pilot Crushtec International, which was appointed as the sole distributor of Finnish company Metso’s aggregates products and services in southern Africa in April 2016.
Introduction
This report focuses on the manufacture and wholesale of mining, quarrying and construction machinery in South Africa. Data from the Construction and Mining Equipment Suppliers’ Association (CONMESA) shows that a total of 5,718 items of mining and construction equipment were sold during 2015. According to the Sector Skills Plan Update: 2015/16-2019/20 of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA), employment in its metal chamber totalled 298,000 in June 2015. Currently manufacturers of mining, quarrying and construction machines are experiencing subdued demand for their products, due to low commodity prices and limited activity in the construction sector.
Strengths
• Companies invest in technological innovation.
• Mature market with several players.
• Provides equipment used by different economic sectors.
• Reputation for manufacturing high quality products.
• The provision of thorough back-up and maintenance services.
Weaknesses
• Severe skills shortages of artisans, technicians, engineers and project managers.
• There is fierce competition from numerous importers and distributors of international brands.
Opportunities
• Establishment of the Mining Equipment Manufacturing of South Africa organisation.
• Exports into the rest of Africa.
• Planned establishment of a local export-import bank.
• Planned spending by government and state-owned companies on infrastructure.
Threats
• For local manufacturers, increasing numbers of cheaper imports.
• Rising input costs.
• Subdued demand if commodity prices remain low and if construction activity does not increase.
• Volatile exchange rate.
Outlook
Several manufacturers of mining, quarrying and construction machines expect markets to remain flat during the remainder of 2016, but Barloworld is hopeful for a recovery during 2017 and 2018 as the mining industry starts to invest in new projects. Several greenfield projects are likely to commence as soon as commodity prices improve and stabilise. CONMESA’s Stefan Otto said, “In the short term I believe we will be hanging on and just aiming to survive. With the amount of uncertainty in the market and the difficulties facing our major clients in the mining and construction sectors it will most likely be a bumpy 2016 and 2017 with the chance of weathering the storm only by late 2017. In the medium term I hope to see a stabilisation of the exchange rate and a stable South African economy with a slow uptick in business from late 2017 onward.”
Manufacturing of Machinery for Mining, Quarrying and Construction
2016
Full Report
R 1 900.00(ZAR) estimated $105.22 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.65 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 1 |
| 2.2. | Geographic Position | 2 |
| 3. | SIZE OF THE INDUSTRY | 3 |
| 4. | STATE OF THE INDUSTRY | 7 |
| 4.1. | Local | 7 |
| 4.1.1. | Corporate Actions | 12 |
| 4.1.2. | Regulations | 12 |
| 4.1.3. | Enterprise Development and Social Economic Development | 13 |
| 4.2. | Continental | 14 |
| 4.3. | International | 15 |
| 5. | INFLUENCING FACTORS | 17 |
| 5.1. | Economic Environment | 17 |
| 5.2. | Rising Input Costs | 17 |
| 5.3. | State of the Mining and Construction Sectors | 18 |
| 5.4. | Government Policy | 20 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 20 |
| 5.6. | Labour | 23 |
| 5.7. | Environmental Concerns | 25 |
| 5.8. | Availability of Service Centres and Parts | 25 |
| 6. | COMPETITION | 26 |
| 6.1. | Barriers to Entry | 26 |
| 7. | SWOT ANALYSIS | 27 |
| 8. | OUTLOOK | 27 |
| 9. | INDUSTRY ASSOCIATIONS | 28 |
| 10. | REFERENCES | 28 |
| 10.1. | Publications | 28 |
| 10.2. | Websites | 29 |
| COMPANY PROFILES | 30 | |
| AARD MINING EQUIPMENT (PTY) LTD | 30 | |
| ATLAS COPCO SOUTH AFRICA (PTY) LTD | 33 | |
| AURY AFRICA (PTY) LTD | 35 | |
| BARLOWORLD LTD | 36 | |
| BELL EQUIPMENT LTD | 40 | |
| BIRD MACHINES (PTY) LTD | 44 | |
| CMTI MINING MANUFACTURING (PTY) LTD | 46 | |
| DCD GROUP (PTY) LTD | 47 | |
| DESMOND EQUIPMENT SA CC | 50 | |
| ELB GROUP LTD | 51 | |
| EQSTRA TA EQUIPMENT (PTY) LTD | 54 | |
| FERMEL (PTY) LTD | 56 | |
| FLSMIDTH (PTY) LTD | 58 | |
| GALISON MANUFACTURING (PTY) LTD | 60 | |
| HITACHI CONSTRUCTION MACHINERY SOUTHERN AFRICA CO (PTY) LTD | 61 | |
| IAN DICKIE AND COMPANY (PTY) LTD | 63 | |
| INVICTA HOLDINGS LTD | 64 | |
| JOEST KWATANI (PTY) LTD | 68 | |
| JOY GLOBAL (AFRICA) (PTY) LTD | 70 | |
| KOMATSU AFRICA HOLDINGS (PTY) LTD | 72 | |
| LIEBHERR-AFRICA (PTY) LTD | 75 | |
| LONGYEAR SOUTH AFRICA (PTY) LTD | 77 | |
| MANHATTAN MINING EQUIPMENT (PTY) LTD | 79 | |
| MAX POWER SERVICES (PTY) LTD | 81 | |
| MECHPROTECH (PTY) LTD | 83 | |
| METSO SOUTH AFRICA (PTY) LTD | 84 | |
| MULTOTEC (PTY) LTD | 85 | |
| OCTA ENGINEERING KROONSTAD (PTY) LTD | 87 | |
| OSBORN ENGINEERED PRODUCTS SA (PTY) LTD | 89 | |
| PAN MIXERS SOUTH AFRICA (PTY) LTD | 91 | |
| PETREL ENGINEERING (PTY) LTD | 92 | |
| PILOT CRUSHTEC INTERNATIONAL (PTY) LTD | 94 | |
| REEF CONSTRUCTION MACHINERY COMPANY (PTY) LTD | 96 | |
| SMITH CAPITAL EQUIPMENT (PTY) LTD | 97 | |
| TENOVA MINING AND MINERALS SOUTH AFRICA (PTY) LTD | 98 | |
| THYSSENKRUPP INDUSTRIAL SOLUTIONS (AFRICA) (PTY) LTD | 100 | |
| TRIDENT SOUTH AFRICA (PTY) LTD | 102 | |
| TURNER MORRIS (PTY) LTD | 104 | |
| VAN REENEN STEEL (PTY) LTD | 106 | |
| WUHLF EQUIPMENT (PTY) LTD | 108 |
