Promising growth in construction sector brings hope for 2019

Despite the contribution of the construction sector to local economic
activity being inconsistent, and having decreased significantly over the years,
Constructional Engineering Association (CEA) executive director Anthony Boy is hopeful that there
will be an upturn in investments in the sector this year.

This comes after Steel and Engineering Industries Federation
of South Africa (Seifsa) chief economist and commercial executive Michael Ade, who compiled the ‘Seifsa Economic Outlook’ report on behalf of the CEA, mentions that the
prognostic is for a moderate rebound in construction sector activity, driven
by increased investment spending by private business enterprise and general
government.

Boy says, while there is optimism about increased investment this year,
industry needs to be innovative, and consider new products and new opportunities
to export. Recent changes in trade tariffs and a
relaxation on export regulations mean that more exports can
be initiated.

Amid the economic situation locally and having seen what is required to
uplift the sector to its former glory, the CEA hopes to reignite the interest needed
by the captains of industry to restore the local construction and fabrication industries to their
former glory.

This will be done with a face-to-face drive, spearheaded by Boy, meeting
with every one of the CEA’s 278 members at senior management level to
initiate conversation within each company to encourage participation.

He notes that the CEA would often discuss the way forward
with government and industry bodies, but interest in these meetings petered out
in the past few years. He believes that this has negatively impacted on the
sector and needs to be addressed at grass-roots level.

Further, the CEA also hopes to re-establish
communication with government – specifically the DTI, Business Unity South Africa and The National
Economic Development and Labour Council.

The CEA hopes to accomplish this by working
with Seifsa and Ade, who is highly
regarded in the industry and is known to communicate well at government
level. CEA believes that with the captains of
industry, government and reputed experts on board, the construction sector can grow
exponentially in the next three years.

Although previous CEA executive director Louis Breckenridge says the construction industry is in the
worst state it has ever been, he is hopeful that, through perseverance, the
industry can recover.

The local construction sector will show great
potential for the future if given the right tools and foundation, Breckenridge
adds. “The DTI needs to display more faith in the capabilities of the South
African worker, and realise the potential within our borders.”

Breckenridge, who currently fills what he calls a “watching brief”
position in the industry, has been on the judge’s panel for the Seifsa Awards and has first-hand knowledge of the innovation and potential of South Africans.

Boy concludes that “through direct communication with our membership and government, we believe we can adequately represent the industry, and look forward to a prosperous future”. http://www.engineeringnews.co.za/article/promising-growth-in-constructional-sector-brings-hope-for-2019-2019-02-22