Construction World February 2020

WHAT NOW FOR THE REST OF THE STEEL INDUSTRY?

On 10 October 2019, some 900 people attended the South African Institute of Steel Construction’s (SAISC’S) annual Steel Awards held at three venues simultaneously in Johannesburg, Durban and Cape Town. And they were well rewarded for their attendance as this year they were treated to a record number of highly innovative entries. What is more, the Steel Awards enjoyed unprecedented sponsor support while the entries themselves with the most diverse seen to date.

T he range of building types entered was compendious and the quality and of the innovation brought to bear in many of these entries was remarkable. The Steel Awards demonstrated South $IULFD̵V DELOLW\ WR PDQXIDFWXUH DQG FRQVWUXFW VWHHO VWUXFWXUHV ͤW IRU PXOWLSOH SXUSRVHV ZKLFK LQ H[FHOOHQFH PDWFK DQG LQ FHUWDLQ LQVWDQFHV H[FHHG DQ\WKLQJ HOVH IRXQG LQ WKH ZRUOG The glittering success of the steel awards stands as a stark contrast to what is happening in South Africa’s steel construction industry today. The past four years the industry has shrunk, and thousands of jobs have been lost. Many of South Africa’s long- standing and most successful construction companies have either closed or gone into business rescue. This we all know. ̸8QOHVV D FRXQWU\ LV VXFFHVVIXOO\ LQGXVWULDOLVHG LW ZLOO VLQN EDFN into being an economic backwater, and as a globally uncompetitive XQLW ZLOO EH D WDNHU RI SULFHV̹ H[SODLQV 6$,6& &(2 3DROR 7ULQFKHUR ̸+RZHYHU RXU PRVW UHFHQW 6WHHO $ZDUGV VWDQGV DV D SURXG H[DPSOH RI ZKDW FDQ EH DFKLHYHG LQ 6RXWK $IULFD :H QHHG WR transfer some of these learnings into other areas both of industry DQG JRYHUQPHQW XQOHVV ZH ZDQW WR H[SHULHQFH WKH SHDFH DQG poverty, of stagnancy. These learnings need to be applied not only in the steel industry but also in other South African industry sectors. 2QH KDV WR ORRN DW WKH FRPSDQLHV ZKR SDUWLFLSDWHG LQ WKH steel awards and use what they have done as a template for running both industry and the country as a whole. 7KH ͤUVW DWWULEXWH WKDW WKH VXFFHVVIXO FRPSDQLHV SRVVHVV LV courage. Innovation takes courage. It takes courage to step outside what are normally accepted bounds and to produce something H[FHSWLRQDO ̸$V 6RXWK $IULFDQV ZH KDYH VKRZQ PDQ\ WLPHV WKDW ZH DUH FDSDEOH RI JUHDW FRXUDJH ZKHQ LW̵V QHHGHG̹ 7ULQFKHUR FRQWLQXHV ̸3HULRGLFDOO\ ZH QHHG WKH DELOLW\ WR UHLPDJLQH RXUVHOYHV WR VWHS back and dispassionately and critically look at our organisations and where they’re going. As an Institute, we are currently embarking RQ MXVW VXFK DQ H[HUFLVH DQG ZRXOG HQFRXUDJH LQGXVWU\ DQG government to do the same to avoid South Africa’s relegation to WKH ' GLYLVLRQ̹ KH DGGV 7KH FRPSDQLHV WKDW ZRQ DZDUGV DW WKH 6$,6& HYHQW VKDUH the characteristic of being nimble, of being agile and responsive to prevailing circumstances. Apart from the normal issues of running a business such as correct gearing ratios, effective credit control DQG PDQDJLQJ FDVK ͥRZ VXFFHVVIXO EXVLQHVVHV DUH KLJKO\ UHOLDQW RQ WKH PRUH LQWDQJLEOH DVSHFW RI UHODWLRQVKLSV ̸,Q EXVLQHVV LW LV DERXW QHWZRUNLQJ DQG FRQQHFWLQJ̹ H[SODLQV 7ULQFKHUR ̸7KRVH FRPSDQLHV that have good relationships with their suppliers, the people who give WKHP ZRUN WKH VWDII DQG WKHLU FRPSHWLWRUV DUH GHͤQLWHO\ LQ D EHWWHU SRVLWLRQ IRU VXFFHVV̹ KH DGGV Regarding a solution to the current steel industry crisis, Trinchero H[SODLQV WKDW WKHUH LV QR VLOYHU EXOOHW VROXWLRQ 7KH DQVZHU OLHV LQ doing the right thing, promptly and at the right time and doing this every day repeatedly. ̸$W WKH ,QVWLWXWH WKLV LV VRPHWKLQJ ZH WU\ WR GR FRQVWDQWO\ and as part of the reason why this year’s Steel Awards had been

SAISC CEO, Paolo Trinchero.

the resounding success it has been. The role of the Institute has been since 1956 promoting the use of steel in construction and contributing to their health and wealth of the industry for the good of all players. The Institute is respected for its reservoir of authoritative technical knowledge and its role as the collective voice of the steel FRQVWUXFWLRQ LQGXVWU\ ̸+RZHYHU WKH ,QVWLWXWH LV QRW D SROLWLFDO lobbyist, and, as such, is not responsible for driving direct sales for DQ\ RI LWV PHPEHUV̹ KH HODERUDWHV $V WKH FROOHFWLYH YRLFH RI WKH steel industry, the SAISC has been intensively communicating with the Department of Trade and Industry, among other government RUJDQLVDWLRQV WR ͤQG D FRQVWUXFWLYH VROXWLRQ WR WKH FXUUHQW VLWXDWLRQ A concern of the Institute is the inordinate amount of time taken WR HIIHFW JRYHUQPHQW LQLWLDWLYHV ̸0DQ\ EXVLQHVVHV LQ WKH VWHHO LQGXVWU\ GR QRW KDYH WKH OX[XU\ RI VL[ PRQWKV WR ZDLW ZKLOH LQ QHZ ‘steel industry blueprint’ is drawn up by a government department. $W WKLV VWDJH WKH QHHG IRU SRVLWLYH FKDQJH LV PRUH WKDQ XUJHQW̹ KH DVVHUWV ̸3UHVLGHQW &\ULO 5DPDSKRVD VXPPHG WKH 6RXWK $IULFDQ challenge when he said: ‘In South Africa we are very good at talking, EXW WHUULEOH DW GRLQJ ̵̹ In terms of doing, the SAISC is in the process of reimagining its IXWXUH ̸:H UHDFK RXW RXU KDQGV WR ERWK JRYHUQPHQW DQG WR EXVLQHVV WR XQGHUWDNH D VLPLODU UH LPDJLQDWLRQ RU UHLQYHQWLRQ̹ VD\V 7ULQFKHUR ̸:H KDYH VHHQ WKH SRVVLELOLW\ IRU VXFFHVV LQ RXU FHOHEUDWLRQ RI VWHHO H[FHOOHQFH LQ RXU 6WHHO $ZDUGV (YHQW DQG QRZ ZH QHHG WR ͤQG VRPH ZD\ RI H[WHQGLQJ WKDW WKURXJKRXW LQGXVWU\̹ KH DGGV ̸7KH 6$,6& VLQFHUHO\ ZLVKHV WR SDUWQHU ZLWK SULYDWH DQG SXEOLF sector organisations in whatever way possible to reach a better, more sustainable future, both of the steel industry and our nation as D ZKROH̹ KH FRQFOXGHV ƒ

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CONSTRUCTION WORLD FEBRUARY 2020