Construction World April 2021

COMMENT

After the unprecedented decline in construction activity in 2020 brought on by the COVID-19 pandemic and its lockdown regulations, the good news is that the fourth quarter of 2020 saw an increased recovery – something that had already started in the third quarter.

T his is according to the Afrimat Construction Index (ACI) for the fourth quarter of 2020. It provides evidence of a “pronounced recovery path that started in the previous quarter”. Economist Dr. Roelof Botha, on behalf of the JSE-listed Afrimat, says that after the sharp decline in the second quarter of 2020, activity in the industry has been above the base period level of 100 for two successive quarters. According to Botha the construction industry is exhibiting a swift return to pre- pandemic levels, something that came as a surprise to many economists – including the economists in the National Treasury. Between October and December last year, the ACI indicates a change of 2,5% quarter- on-quarter. The ACI recorded an index value of 111,3 in the fourth quarter, 60% higher than the index value of the second quarter of 2020. Botha says that the index is now almost on the same level as it was at the beginning

B E S T P R O J E C T S T W E N T I E T H

of 2018. It is particularly encouraging that of the ACI’s constituent indicators, two thirds had positive growth when compared to the two quarters that preceded it. He says the swift recovery of the construction sector can be referred to as a V-shape. The systematic lifting of most of the lockdown regulations resulted in such a recovery. According to Botha, most sectors in the economy, including construction, have had a marked improvement. “It seems clear that retail sales for hardware and building materials, the value of building plans passed and the number of buildings completed are fuelling the recovery phase in the construction sector,” Botha says. Two main factors will stimulate a further recovery in 2021: inflation is likely to remain within the South African Reserve Bank’s target range of between 3% and 6% which means that interest rates can remain low which has already had a positive impact on the value of new mortgage loans.

2021 Our 20 th Best Projects is now awaiting submissions. Turn to page 18 for an overview of the awards, the categories and the submission criteria. The awards will culminate in a function in early November. Details of this event will be shared closer to the time. Enter your Best Project and be part of these Awards that has been recognising excellence in the built environment for two decades.

Stay safe Wilhelm du Plessis Editor

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

Scan for website

PUBLISHER Karen Grant

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

TOTAL CIRCULATION: (Fouth Quarter '20) 10 692

PUBLISHED MONTHLY BY Crown Publications (Pty) Ltd P O Box 140 BEDFORDVIEW, 2008 Tel: 27 11-622-4770 • Fax: 27 11-615-6108

Katlego Montsho CIRCULATION Karen Smith

The views expressed in this publication are not necessarily those of the editor or the publisher. PRINTED BY Tandym Cape

Publisher of the Year 2018 (Trade Publications)

www.constructionworldmagazine.co.za

2

CONSTRUCTION WORLD APRIL 2021