Report Coverage
The report on The Wholesale of Other Machinery describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 163 companies including key players Bell Equipment, Barloworld, and ELB. It includes comprehensive reports on these and companies such as Master Drilling, which announced the acquisition of Atlantis Group and recently unveiled its new blast-free mobile tunnel borer.
Introduction
This report focuses on the wholesale of capital equipment and other machinery in South Africa. The key wholesale markets which are examined include: mining and construction machinery; agricultural machinery; fire extinguishers; generators and transformers; and pumps and valves. The metals and machinery sector employs around 295,000 people and has turnover of over R70bn across relevant machinery sub-sectors. Machinery suppliers face challenges related to South Africa\'s poor economy and the country\'s declining competitiveness relative to major machinery exporting nations such as China.
Strengths
• Close linkages with international manufacturers.
• High levels of manufacturing capacity.
• Relatively stable demand due to the economic, or legal, necessity of supplied machinery.
• Reputation for high-quality products.
• Robust regulatory framework.
• South Africa is the major distributor of machinery into the rest of the continent.
• Strong government support for localisation and manufacturing.
Weaknesses
• Capital- and energy-intensive.
• Declining enforcement of quality assurance and standards through the South African Bureau of Standards.
• Declining manufacturing competitiveness relative to key exporting nations such as China.
• Fragile labour market and relatively frequent strikes.
• High carbon emissions.
• High electricity and labour costs.
• High levels of imports, negative trade balance, and exposure to the exchange rate.
• Key customer markets depend on sustained economic growth.
• Shortage of skills.
Opportunities
• Closer linkages between private sector, government, and research institutions, exemplified by Mandela Mining Precinct.
• Government investment in infrastructure and state-owned entities.
• Increasing African demand for capital equipment and other machinery; exports into Africa.
• Localisation regulations through preferential procurement and the mining charter.
• Technological advancements in manufacturing process and machinery itself; Industry 4.0 and the Internet of Things.
Threats
• Continued falling competitiveness relative to major exporting markets.
• Continued recession and declines in volume production and manufacturing capacity utilisation.
• Falling business confidence and investment due to political and policy uncertainty e.g. Mining Charter, private security regulations, Carbon Tax.
• Increasing exports.
• Local content thresholds punishing internationally-linked manufacturers.
• Rising electricity, fuel, and labour prices.
Outlook
eifsa expects the market for capital equipment and other machinery to remain flat in 2018. Despite some positive sales performance, particularly for mining and agricultural machinery, imports continue to threaten local players, and South Africa\'s competitiveness relative to major exporting countries such as China has continued to fall. Machinery suppliers are somewhat cushioned by economic necessity in the case of capital equipment, and legislative requirement in the case of fire extinguishers, of the products they supply. Local procurement regulations and fluctuations in the exchange rate may also provide some relief.\r\n\r\nHowever, Philippa Rodseth of the Manufacturing Circle suggests that these factors are not the silver bullet that the industry needs in the face of deeper structural problems with the economy and rising manufacturing costs. Government support and increasingly close linkages between customers and machinery suppliers will provide some opportunities, but the Construction and Mining Equipment Suppliers’ Association chairman Lawrence Peters states that “a true recovery can be expected only when the market picks up and we see a sustainable improvement across all sectors of the local economy”. \r\n\r\nWhile industry associations suggest that most machinery markets are well positioned to take advantage of economic growth, should it materialise, the generally embattled state of South Africa\'s manufacturing sector means that imports will remain a threat regardless of growth. Roger Baxter of the Minerals Council points out that despite procurement regulations, South African suppliers simply lack the capacity to locally produce the necessary volume of machinery to meet demand in key customer markets such as mining. While supportive of localising machinery manufacturing capacity, associations note that the process is likely to take time.
Full Report
R 1 900.00(ZAR) estimated $105.39 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.77 (USD)*
Table of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 3 |
2.2. | Geographic Position | 5 |
3. | SIZE OF THE INDUSTRY | 5 |
4. | STATE OF THE INDUSTRY | 7 |
4.1. | Local | 7 |
4.1.1. | Corporate Actions | 23 |
4.1.2. | Regulations | 24 |
4.1.3. | Enterprise Development and Social Economic Development | 26 |
4.2. | Continental | 27 |
4.3. | International | 30 |
5. | INFLUENCING FACTORS | 30 |
5.1. | Economic Environment | 30 |
5.2. | Government Support | 32 |
5.3. | Rising Costs | 33 |
5.4. | Labour | 34 |
5.5. | Technology, Research and Development (R&D) and Innovation | 37 |
5.6. | Environmental Concerns | 39 |
6. | COMPETITION | 40 |
6.1. | Barriers to Entry | 41 |
7. | SWOT ANALYSIS | 42 |
8. | OUTLOOK | 43 |
9. | INDUSTRY ASSOCIATIONS | 44 |
10. | REFERENCES | 45 |
10.1. | Publications | 45 |
10.2. | Websites | 46 |
APPENDIX 1 | 47 | |
SUMMARY OF MAJOR PLAYERS | 47 | |
COMPANY PROFILES | 62 | |
AARD MINING EQUIPMENT (PTY) LTD | 62 | |
ABACUS AUTOMATION (PTY) LTD | 64 | |
ABB SOUTH AFRICA (PTY) LTD | 66 | |
ACTOM (PTY) LTD | 69 | |
ADVANCED WORX 112 (PTY) LTD | 77 | |
AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD | 79 | |
AHI CARRIER SOUTH AFRICA (PTY) LTD | 81 | |
AINSWORTH ENGINEERING (PTY) LTD | 83 | |
AMMANN CONSTRUCTION MACHINERY SOUTH AFRICA (PTY) LTD | 85 | |
ANSTAN TECHNOLOGIES CC | 86 | |
ANTON PAAR SOUTHERN AFRICA (PTY) LTD | 88 | |
APPLEBY INSTRUMENTATION (SA) (PTY) LTD | 90 | |
ARCTIC CHILL (PTY) LTD | 92 | |
ARGO INDUSTRIAL (PTY) LTD | 93 | |
ARI FLOW CONTROL AFRICA (PTY) LTD | 95 | |
ARMCOIL AFRIKA (PTY) LTD | 97 | |
ATBRO SYSTEMS CC | 99 | |
AUTOTRONIX (PTY) LTD | 101 | |
AVENG AFRICA (PTY) LTD | 103 | |
AVK HOLDING SOUTHERN AFRICA (PTY) LTD | 109 | |
AZ-ARMATUREN SOUTH AFRICA (PTY) LTD | 111 | |
BABCOCK AFRICA (PTY) LTD | 112 | |
BARLOWORLD LTD | 114 | |
BECKHOFF AUTOMATION (PTY) LTD | 119 | |
BELL EQUIPMENT SALES SOUTH AFRICA LTD | 121 | |
BHBW SOUTH AFRICA (PTY) LTD | 123 | |
BLUE DISA TRADING 542 (PTY) LTD | 125 | |
BOBCAT EQUIPMENT SOUTH AFRICA (PTY) LTD | 127 | |
BRAYBAR PUMPS (PTY) LTD | 129 | |
BREHNOR PUMPS (PTY) LTD | 131 | |
BRIGGS AND STRATTON RSA (PTY) LTD | 132 | |
BURKERT SOUTH AFRICA (PTY) LTD | 134 | |
CACO TRADING (PTY) LTD | 136 | |
CAPE CENTRIFUGE CC | 138 | |
CARL ZEISS (PTY) LTD | 140 | |
CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD | 142 | |
CENTA FIRE (PTY) LTD | 144 | |
CHANNEL DATA (PTY) LTD | 146 | |
CIRCUIT BREAKER INDUSTRIES (PTY) LTD | 148 | |
CMTI MINING MANUFACTURING (PTY) LTD | 150 | |
CNH INDUSTRIAL SA (PTY) LTD | 151 | |
COLUMBIT (PTY) LTD | 153 | |
CONLOG (PTY) LTD | 155 | |
CRITERION EQUIPMENT (PTY) LTD | 157 | |
CROSS FIRE MANAGEMENT (PTY) LTD | 159 | |
CUMMINS SOUTH AFRICA (PTY) LTD | 161 | |
DAIKIN AIR-CONDITIONING SOUTH AFRICA (PTY) LTD | 163 | |
DIESEL ELECTRIC SERVICES (PTY) LTD | 165 | |
DIESEL GEN TECHNOLOGIES CC | 167 | |
DISTRIBUTION AND WAREHOUSING NETWORK LTD | 169 | |
ELB GROUP LTD | 172 | |
ELECTRO INDUCTIVE INDUSTRIES (PTY) LTD | 176 | |
ENDRESS AND HAUSER (PTY) LTD | 178 | |
ENSERVE ENGINEERING SERVICES (PTY) LTD | 180 | |
EPIROC SOUTH AFRICA (PTY) LTD | 182 | |
EQSTRA TA EQUIPMENT (PTY) LTD | 185 | |
EURO AUTOMATION TECHNOLOGY (PTY) LTD | 187 | |
FALCON AGRICULTURAL EQUIPMENT (PTY) LTD | 189 | |
FESTO (PTY) LTD | 191 | |
FLOWSERVE SOUTH AFRICA (PTY) LTD | 193 | |
FLSMIDTH (PTY) LTD | 195 | |
FRANKLIN ELECTRIC (SOUTH AFRICA) (PTY) LTD | 198 | |
FREE STATE TRANSFORMERS (PTY) LTD | 200 | |
FRIEDSHELF 559 (PTY) LTD | 202 | |
G C TILLAGE CC | 204 | |
GEA AFRICA (PTY) LTD | 205 | |
GENERATOR KING (PTY) LTD (THE) | 207 | |
GENERATOR LOGIC HOLDINGS (PTY) LTD | 209 | |
GENPOWER ELECTRICAL WHOLESALERS CC | 211 | |
GEOMECHANICS (PTY) LTD | 213 | |
GOSCOR (PTY) LTD | 215 | |
GRUNDFOS (PTY) LTD | 217 | |
HARRACK AUTOMOTIVE AIR-CONDITIONING (PTY) LTD | 219 | |
HITACHI CONSTRUCTION MACHINERY SOUTHERN AFRICA CO (PTY) LTD | 221 | |
HOFFMANN POWER (PTY) LTD | 223 | |
HONDA MOTOR SOUTHERN AFRICA (PTY) LTD | 225 | |
HONEYWELL AUTOMATION AND CONTROL SOLUTIONS SOUTH AFRICA (PTY) LTD | 227 | |
HUDACO TRADING (PTY) LTD | 230 | |
HUMULANI MARKETING (PTY) LTD | 234 | |
HYBRID AUTOMATION CC | 237 | |
IAN DICKIE AND COMPANY (PTY) LTD | 239 | |
ILED (PTY) LTD | 241 | |
INDECON (PTY) LTD | 242 | |
INGERSOLL-RAND COMPANY SOUTH AFRICA (PTY) LTD | 243 | |
INSTROTECH (PTY) LTD | 245 | |
INTA SAFETY CORPORATION (PTY) LTD | 247 | |
INVICTA HOLDINGS LTD | 249 | |
IRITRON (PTY) LTD | 253 | |
JOHN DEERE (PTY) LTD | 255 | |
KOMATSU AFRICA HOLDINGS (PTY) LTD | 256 | |
KONGSKILDE INDUSTRIES SOUTH AFRICA (PTY) LTD | 258 | |
KSB PUMPS AND VALVES (PTY) LTD | 259 | |
LEMKEN SOUTH AFRICA (PTY) LTD | 262 | |
LG ELECTRONICS SA (PTY) LTD | 264 | |
LIEBHERR-AFRICA (PTY) LTD | 266 | |
LIXIL AFRICA (PTY) LTD | 268 | |
LONGYEAR SOUTH AFRICA (PTY) LTD | 270 | |
MAGETZ ELECTRICAL CC | 272 | |
MANITOU SOUTHERN AFRICA (PTY) LTD | 274 | |
MASSMART HOLDINGS LTD | 276 | |
MASTER DRILLING GROUP LTD | 282 | |
MATASE INDUSTRIAL SOLUTIONS (PTY) LTD | 285 | |
METSO SOUTH AFRICA (PTY) LTD | 287 | |
MICROPOWER MODULEK (PTY) LTD | 289 | |
MOORE PROCESS CONTROLS (PTY) LTD | 291 | |
MUNTERS (PTY) LTD | 293 | |
N AND Z INSTRUMENTATION AND CONTROL (PTY) LTD | 295 | |
NATIONAL SECURITY AND FIRE (PTY) LTD | 297 | |
NEW WAY POWER (PTY) LTD | 300 | |
NIDEC INDUSTRIAL AUTOMATION SOUTHERN AFRICA (PTY) LTD | 302 | |
ORBACH AGRI (PTY) LTD | 304 | |
PAMODZI UNIQUE ENGINEERING (PTY) LTD | 305 | |
PAN MIXERS SOUTH AFRICA (PTY) LTD | 307 | |
PARKER-HANNIFIN (AFRICA) (PTY) LTD | 309 | |
PEPPERL-FUCHS (PTY) LTD | 311 | |
PIKET IMPLEMENTE (PTY) LTD | 313 | |
PILOT CRUSHTEC INTERNATIONAL (PTY) LTD | 315 | |
PIPE MAKERS (PTY) LTD | 317 | |
PREI INSTRUMENTATION (PTY) LTD | 319 | |
PROTEA ELECTRONICS (PTY) LTD | 321 | |
PSV HOLDINGS LTD | 323 | |
RADIUM ENGINEERING (PTY) LTD | 326 | |
RAPID ALLWEILER PUMP AND ENGINEERING COMPANY (PTY) LTD | 327 | |
RELIABLE TRANSFORMERS CC | 329 | |
REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD | 330 | |
ROYAL HASKONINGDHV (PTY) LTD | 332 | |
S A M ENGINEERING (PTY) LTD | 335 | |
SAFEQUIP (PTY) LTD | 337 | |
SCAMONT ENGINEERING (PTY) LTD | 339 | |
SCHNEIDER ELECTRIC SOUTH AFRICA (PTY) LTD | 341 | |
SENWES NEWCO 3 (PTY) LTD | 343 | |
SGB SMIT POWER MATLA (PTY) LTD | 344 | |
SHANTUI EQUIPMENT SOUTHERN AFRICA (PTY) LTD | 346 | |
SIEMENS (PTY) LTD | 347 | |
SINETECH (PTY) LTD | 351 | |
SMITH MINING EQUIPMENT (PTY) LTD | 354 | |
STEVENS AND CO (PTY) LTD | 356 | |
SUDEN PROCUREMENT CC | 358 | |
SULZER PUMPS (SOUTH AFRICA) (PTY) LTD | 360 | |
SUPERWATT (PTY) LTD | 362 | |
SYSTEMS AUTOMATION AND MANAGEMENT (PTY) LTD | 364 | |
SYSTEMS-ANYWHERE (PTY) LTD | 366 | |
THYSSENKRUPP INDUSTRIAL SOLUTIONS (AFRICA) (PTY) LTD | 368 | |
TORRE HOLDINGS (PTY) LTD | 370 | |
TRAFO POWER SOLUTIONS (PTY) LTD | 373 | |
TRANS ELECTRON CC | 374 | |
TRANSFORMER MANUFACTURERS (PTY) LTD | 376 | |
TUNING FORK (PTY) LTD | 377 | |
TURNER MORRIS (PTY) LTD | 380 | |
VALTRAC (PTY) LTD | 382 | |
VINCEMUS INVESTMENTS (PTY) LTD | 383 | |
VR ENGINEERING (PTY) LTD | 388 | |
WACKER NEUSON (PTY) LTD | 390 | |
WALTER MEANO ENGINEERING (PTY) LTD | 392 | |
WATSON-MARLOW BREDEL SA (PTY) LTD | 394 | |
WEIR MINERALS AFRICA (PTY) LTD | 396 | |
WELKOM INDUSTRIAL CONTROLS (PTY) LTD | 399 | |
WIKA INSTRUMENTS (PTY) LTD | 401 | |
WIRTGEN SOUTH AFRICA (PTY) LTD | 404 | |
WUHLF EQUIPMENT (PTY) LTD | 405 | |
YOKOGAWA SOUTH AFRICA (PTY) LTD | 407 | |
ZENZELE VALVES MANUFACTURING (PTY) LTD | 409 | |
ZEST WEG GROUP AFRICA (PTY) LTD | 411 |