Modern Quarrying Q4 2018

INDUSTRY NEWS

2,3% upswing not a true reflection of the state of construction

Hillhead 2020 dates announced The 2,3% growth in the construction sector reflected in the Stats SA GDP Q2 2018 figures is not an accurate reflection of the state of South Africa’s construction sector, says Musa Shangase, President of the Master Builders’ Association North. MBA North, which represents members in Gauteng, North West, Mpumalanga and Limpopo, was react- ing to a GDP snapshot that indicated slight growth in the construction sector in Q218, following up to 10 years of slow growth and stagnation in the sec- tor across the country, with confidence in the sector dropping to a 17-year low last year. “Although the construction sector showed a 2,3% increase in the statis- tics released by Stats SA, these are based on infrastructure projects that do not have any influence on the building industry,” says Shangase. “Earlier this year, we noted that the entire sector faced a ‘state of emergency’, with even major construction firms living ‘hand to mouth’, and the situation has not improved. Confidence in the building industry is at its lowest level since the third quarter in 2000. The initial euphoria in January has rapidly given way to massive negativity. A number of large construction companies are in business rescue or have declared Organisers of the Hillhead Quarry Exhibition, The QMJ Group, have announced the dates for the 2020 event. The biennial showcase for the quarrying and construction industry will take place from 23-25 June 2020 at Hillhead Quarry, near Buxton, Derbyshire, England. The event follows a record-breaking show in 2018 which featured 546 exhib- itors and an ABC-audited attendance of 19 753. Demand for stand space is expected to be very high at the next edi- tion of the show. l

Confidence in the building industry is at its lowest level since the third quarter in 2000.

slowed the number of projects that are being awarded.” “Master Builders SA has issued a number of statements around the state of the industry and is actively inter- acting with treasury in an effort to get members paid. The lack of payment by government is negatively impacting a large number of smaller players in the industry and also sub-contractors who traditionally rely on the larger com- panies for work. A lack of new work is further impacting on the support profes- sions such as architects, civil engineers and quantity surveyors. This is height- ening competition within the building industry and suppliers to the industry,” says Shangase. l

insolvency. As the construction sector is an important indicator of overall economic performance, this should be cause for concern across the country.” Shangase notes several key challenges impacting the sector’s performance, including lack of payment, illegal protest action, skills shortages and the struggling economy as a whole. “Since 2013 the industry has been in the headlines for all wrong reasons. Most notable has been the finalisation of the Competition Commission enquiries,” he says. “Private investment in building has declined 16,7% for the first six months of 2018 versus the first six months of 2017. Government is not paying suppliers on time and has also

The 2018 event featured 546 exhibitors.

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MODERN QUARRYING QUARTER 4 - 2018