Construction World April 2020

COMMENT

At the time of writing, South Africa was about to enter uncharted and uncertain waters. COVID-19 cases were on the increase and President Cyril Ramaphosa declared a national state of emergency. The economic outlook for the nation was bleak as 2020 started and COVID-19 is expected to further obliterate any attempt at recovery.

A ccording to the State of Emergency travel restrictions were imposed (which got stricter as the days passed), many ports closed, and movement of people restricted. The markets, across the board, have been in freefall. The Rand is at its weakest in many years. Ramaphosa, in announcing these measures said that South Africa have never been confronted by such a severe situation. This severity, combined with the external pressures from a deterioration of the global economy, now combines with South Africa’s already weak economic fundamentals, HQHUJ\ FULVLV DQG LQFUHDVLQJ GHEW SURͤOH WR LQGLFDWH WKDW WKH HFRQRP\ ZLOO FRQWUDFW ̰ PD\EH VLJQLͤFDQWO\ Even though South Africa is seen as a powerhouse in Africa, the reality is that it is a small and open economy that is H[WUHPHO\ YXOQHUDEOH WR ͥXFWXDWLRQV LQ the sentiment for emerging markets. The DUULYDO RI &29,' DQG WKH IRUPHU GRPHVWLF status quo created an extremely hostile environment for economic recovery. Impact on the construction world? :KDW GRHV &29,' PHDQ IRU WKH construction industry? Craig Lawrence, Group HR & HSE Director at Concor with

2. Don’t make long-term strategic decisions based on short-term circumstances

whom I had an interview recently on LURQLFDOO\ KHDOWK DQG VDIHW\ EHVW GHͤQHG the problem: the construction industry is not an industry where labourers can be sent home to effect social distancing. A two or three week total shutdown will obliterate an already stuttering industry, especially SMEs. Even if this does not happen in such VHYHULW\ &29,' ZLOO FDXVH GHOD\V LQ project completions due to temporary shutdowns, absences from labourers and contractors and the delays in the movement of products and materials required in this industry. Opportunity &29,' LV WKH ͤUVW JOREDO FULVLV LQ WKH era of social media. This is as bad as it is good since everyone is an expert on the impact it will have. I am ending this extraordinary note with the opportunity blogger Assaf Luxembourg sees in this crises. He created these for a different context, but I think it can be applied to the South African status quo and that of the construction industry. 1. Breathe He says you will most likely laugh about Corona in two years, forget about LW LQ \HDUV DQG UHDOO\ IRUJHW DERXW LW LQ 50 years.

3. Get to work Luxembourg says that worries about overheads will make you mad, but it will help you start doing the right things and be pro-active. Mad is better than sad. 4. Start investing in what you want to happen the day after Corona This is for the long-term, mid-term and short-term.

5. Understand that your product or service is valuable Embrace your advantages.

6. Now is the time to build relationships with the right people

7. Build a relationship with them, knowing that they are also struggling right now Understand that they may not need your product or service now, but once Corona is over, they will need it fast.

Stay safe Wilhelm du Plessis Editor

@ConstWorldSA

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST Katlego Montsho CIRCULATION Karen Smith

PUBLISHER Karen Grant

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CONSTRUCTION WORLD APRIL 2020