Rise In Construction And Building Material Sales Bodes Well For M&E Sector, Says SEIFSA

Rise in construction and building material sales bodes well for M&E sector, says SEIFSA

JOHANNESBURG, 20 MAY 2021 – The uptick in sales of construction and building materials, amid increased construction activity, is encouraging and bodes well for the Metals and Engineering (M&E) sector, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

Wholesale trade sales data released by Statistics South Africa (StatsSA) today showed an increase in sales of 10.6% in March 2021, compared with March 2020, while month-on-month wholesale trade sales decreased by 1.6% in March 2021, when compared with February 2021. In the construction and building materials category, sales increased from R10.8-billion in February 2021 to R12.3-billion in March 2021, with year-on-year growth of 38.6% in March 2021. 

The increase in the sale of construction and building material was driven mainly by the increase in demand of building supplies such in basic steel products, cement and bricks, as construction activity ramps up amid relaxed COVID-19 regulations. The increase in M&E production sales, which improved significantly from R70-billion in February 20201 to R79-billion in March 2021 also supports the trend.

Commenting on the data, SEIFSA Chief Economist Chifipa Mhango said the increase in construction and building material is positive news for the M&E sector as it indicates increased activity, which will continue to drive demand for the sector’s products. He noted that the Government’s increased focus on localisation will help sustain this improvement. 

“As we try to rebuild our economy by being more inward-looking to drive the local manufacturing capacity of, among other things, construction and building material, the Government needs to ensure that State entities comply with local content procurement requirements to drive demand, protect and create jobs,” Mr Mhango said.


SEIFSA Postpones Southern African Metals And Engineering Indaba And SEIFSA Awards For Excellence

SEIFSA postpones Southern African Metals and Engineering Indaba and SEIFSA Awards for Excellence

JOHANNESBURG, 12 MAY 2021 - The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) today announced that it is postponing its two flagship events indefinitely due to concerns over rising COVID-19 cases in South Africa.

SEIFSA was due to host the 2021 SEIFSA Awards for Excellence on 20 May 2021 and the 6th Southern African Metals and Engineering Indaba on 24-25 May 2021.

The Awards for Excellence aim to promote and reward innovation and excellence in the Metals and Engineering (M&E) sector, while the Indaba brings together the government, labour, business and civil society to engage on and find solutions to challenges facing the sector, while also discussing opportunities to reinvigorate the sector.

“After careful consideration, and in light of South Africa having detected its first cases of the highly infectious Coronavirus variant initially identified in India just as some parts of the country are picking up the early signs of the third wave of infections, we have decided to postpone our events to later in the year,” SEIFSA said. 

SEIFSA said it remains committed to providing platforms such as the SEIFSA Awards for Excellence and the M&E Indaba to enable companies and other industry stakeholders to engage with each other on issues affecting the industry and to also celebrate its successes. “However, the COVID-19 pandemic means that we all need to make difficult decisions to ensure that we all play our part in fighting the pandemic and staving off a possible third wave,” SEIFSA concluded.


POSITIVE TREND IN MANUFACTURING SECTOR PRODUCTION IS ENCOURAGING, SAYS SEIFSA

Positive trend in manufacturing sector production is encouraging, says SEIFSA

JOHANNESBURG, 11 MAY 2021 – The year-on-year improvement in manufacturing production in March 2021 is encouraging even though production in March 2020 was negatively affected by lockdown restrictions put in place to curb the spread of COVID-19, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today. 

According to manufacturing data released by Statistics SA (StatsSA), total manufacturing production increased by 4.6% in year on year in March 2021, while also increasing by 3.4% from February 2021. Total manufacturing sales increased by 17.8% year on year in March 2021 and 5.9% from February 2021. Year to date, production declined by 0.5%, with sales improving by 7.4%.

Within the Metals and Engineering (M&E) sub-sector of the manufacturing sector, which accounts for 29% of total manufacturing production, the 13 sub-categories saw a production increase of an average of 5.5% in March 2021 year on year. Total sales increased by 18.8% to reach R87.8-billion in March 2021, with the largest sales value being in the non-ferrous metal products at R23.7-billion.

SEIFSA Chief Economist Chifipa Mhango said the figures bode well for the M&E industry as they signal a return, albeit slow, return to normal economic activity. “When you look at these figures in conjunction with recently released capacity utilisation data of 74% in the manufacturing sector for the first quarter of 2021, it can be surmised that there is more room for increased activity and hence production,” he said, adding that SEIFSA is hopeful of a sustained improvement in manufacturing production, particularly given that Absa’s Purchasing Managers Index data also indicates an expansionary trajectory.

Mr Mhango said, however, that any sustained improvement in the manufacturing sector, and M&E industry in particular, will depend on the Government’s efforts to revive the economy.

He said the current state of the M&E sector is that of a declining level of employment as well as investment, with a weak trade position with the rest of the world. With total national unemployment rate at 32.5%, South Africa’s industrial base needs to be supported through massive improvement in fixed investment. “To support the growth momentum we are seeing in manufacturing production, the Government will need to speed up the implementation of the Steel Master Plan to the benefit of the local M&E industry, both primary and downstream, and ensure that State entities adhere to localisation procurement rules in public infrastructure spending,” Mr Mhango said.


METALS AND ENGINEERING INDABA TO EXPLORE HOW GOVERNMENT IS FARING IN RESTORING BUSINESS CONFIDENCE IN SOUTH AFRICA

Metals And Engineering Indaba to explore how Government is faring in restoring business confidence In South Africa

JOHANNESBURG, 6 May 2021 – The sixth Southern African Metals and Engineering Indaba will unpack the progress of President Cyril Ramaphosa’s “New Dawn”, exploring whether the sixth administration is succeeding in improving business confidence in South Africa.

The Indaba, organised by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) in partnership with the Industrial Development Corporation, takes place on 24 and 25 May at the IDC Auditorium in Sandton, Johannesburg. It brings together the Government, business, labour and civil society on one platform, to engage on, and find solutions to the challenges facing the Metals and Engineering (M&E) sector.

The session, to be unpacked under the title “‘The New Dawn’: The Sixth Administration, Business Confidence and South Africa’s Sovereign Credit Rating”, will feature a panel of respected political and business commentators, including Wits University lecturer Khaya Sithole, University of Johannesburg lecturer Professor Mcebisi Ndletyana and Executive Director of the Centre for Development an Enterprise Ann Bernstein. 

SEIFSA said the sixth administration was greeted with much optimism and euphoria when it took over amid hopes that a Ramaphosa-led Government would restore confidence in the Government’s ability to grow the economy while forging an efficient, capable and ethical state that is free of corruption. 

“However, given the devastation that the COVID-19 pandemic has wreaked on South Africa’s economy, as well as political internal battles in several political parties, it is clear that the Government has a long journey ahead of it to achieve its aims and restore much-needed investor confidence,” SEIFSA said.

“The Indaba, will therefore, take a critical look at the Government’s progress in turning around the economy and provide recommendations on what the Government can do better to ensure that the country can, among other things, grow the economy and arrest its sovereign credit rating decline,” the Federation said.

Other topics that will be delved into at the Indaba include the South African manufacturing sector’s readiness to embrace the fourth industrial revolution, the formation of a scrap metal exchange to benefit local manufacturers and how the M&E industry can strike a balance between growth and environmental sustainability.


LOW CAPACITY UTILISATION IN MANUFACTURING SECTOR A CONCERN, SAYS SEIFSA

Low capacity utilisation in manufacturing sector a concern, says SEIFSA

JOHANNESBURG, 6 MAY 2021 – Persistant low levels of capacity utilisation in the manufacturing sector and low demand for locally manufactured goods are worrying as COVID-19 alert restrictions continue to limit operations at industrial plants, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today. 

Data released by Statistics South Africa (StatsSA) today shows that total capacity utilisation was 74.0% in first quarter of 2021 compared with 77.5% in first quarter of 2020, representing a decrease of 3.5%. Within the Metals and Engineering (M&E) sector, capacity utilisation was marginally down to 76.1% in the first quarter of 2021 from 76.8% in first quarter of 2020. This was mainly as a result of insufficient demand, with maintenance and shortages of raw material such as oxygen and steel also contributing to the under-utilisation of production capacity.

Overall, the manufacturing sector remains weak in terms of production patterns, with a year-to-date production decline of 3.1% in February 2021. Manufacturing has remained under pressure for some time, with data depicting a low annual average production growth rate of 0.1% in the last four years to 2019, coupled with a massive decline of 13.7% in 2020. In the last five years to 2020, total capacity utilisation in the manufacturing sector has averaged 79.8%, with that of the M&E sector at 77.5%.

While total manufacturing capacity utilisation dipped to 59.8% and to 52.8% the second quarter of 2020 amid Level 5 lockdown restrictions, it improved in the latter quarters of 2020 as the restrictions were eased, reaching 79.3% and 74.6% respectively in the fourth quarter of 2020. In 2020, capacity utilisation for the manufacturing sector and M&E sector totalled 72.3% and 67.6% respectively.

According to SEIFSA Chief Economist Chifipa Mhango, weak manufacturing production amid the lockdown regulations contributed to the economy contracting by 7% in 2020. “COVID-19 significantly hampered production last year. However, there are encouraging signs of a slight recovery as evidenced by Absa’s Manufacturing PMI, which is in an expansionary trajectory of above 50, even though there was marginal decline from 57.4 in March to 56.2 in April,” he said. “We, do, however, reiterate that any recovery in manufacturing production will be driven by the Government’s efforts to revive the economy. It is, therefore, critical, that the Government speeds up the implementation of its economic recovery plan,” Mr Mhango said.

“This is particularly critical for the recovery of the M&E sector, which has experienced a worrying decline in levels of employment and investment,” he said.

He said the M&E sector is heavily reliant on demand from key Government infrastructure projects to boost its production and sales, especially for products such as steel and other related downstream products such as roofing material. An increased level of industrial domestic demand is, therefore, required for manufacturers to reboot capacity utilisation levels to above 80%. 

Mr Mhango added that it is imperative that the South African Government efficiently rolls-out its COVID-19 vaccination programme to enable the economy to open-up further and restore industrial production.


Metals and Engineering Industry to explore opportunities of African Continental Free Trade Area Agreement

JOHANNESBURG, 4 May 2021 – The Southern African Metals and Engineering Indaba will focus on the African Continental Free Trade Area (AfCFTA) agreement, exploring the various opportunities presented by the AfCFTA.

The Indaba, organised by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) in partnership with the Industrial Development Corporation, takes place on 24 and 25 May at the IDC Auditorium in Sandton, Johannesburg. It brings together players in the Metals and Engineering (M&E) sector to engage on, and find solutions to the challenges facing the sector.

SEIFSA said with demand for the local M&E sector struggling, it is critical for the industry to be more export-oriented and expand its industrial market footprint. Trade with Africa as part of what promises to become the largest free trade area agreement in the world is one avenue to increase exports.

The Federation said it is critical to engage on the AfCFTA because of its potential to help revive the struggling M&E sector, given the sector’s trading position in Africa. From 2017 to 2020, the net trading position for South Africa in the sector was R412.3bn. “It is hoped that at the Indaba, stakeholders will find sustainable ways to strengthening this position,” the Federation said.

Confirmed speakers for this session include Secretary-General of the AfCFTA Wamkele Mene, Africa House Director Duncan Bonnett and John Rocha, Chief Director of Export Promotion, Development and Outward Investment Branch at the Department of Trade, Industry and Competition.


SEIFSA AWARDS FOR EXCELLENCE DEMONSTRATE THE POTENTIAL COMPANIES HAVE TO REIGNITE THE ECONOMY THROUGH THEIR EXCELLENCE

SEIFSA Awards For Excellence demonstrate the potential companies have to reignite the economy through their excellence

JOHANNESBURG, 2 MAY 2021 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has extended the closing date for submissions for the seventh SEIFSA Awards for Excellence to Friday, 7 May 2021.

The Awards, which are set to take place on 20 May 2021 in Johannesburg, aim to promote and reward innovation and excellence in the Metals and Engineering (M&E) sector, with the winners serving as benchmarks for best practice in the industry.

SEIFSA CEO Kaizer Nyatsumba said he is looking forward to this year’s submissions and is confident that, as with previous winners, they will demonstrate the potential that companies in the M&E sector have not only to revive South Africa’s struggling economy, but also to reignite it. 

“Our economy has been struggling for years, but we believe that hope for recovery lies in not only innovative and resilient companies, but also those that are committed to transformation and doing good in order to drive economic inclusivity, and those that ensure they conduct their business safely in order to protect their workers and the environment,” he said. 

He said previous SEIFSA Awards for Excellence winners have set the bar high in the various categories, and continue to excel in those areas. 

Last year’s winners included Centurion Systems, which won the Innovative Company of the Year Award and Pamodzi Unique Engineering, which won the Most Transformed Company Award. Babcock Ntuthuko Engineering won the Health and Safety Award, while Beka Schréder won the Best Corporate Social Responsibility Programme of the Year Award. The Artisan of the Year category was on by Kgabo Cars and Training & Services.

This year, all seven categories are up for grabs and comprise:

• Most Innovative Company of Year;

• Health and Safety Award of the Year;

• Best Corporate Social Responsibility Programme of the Year;

• Customer Service Award of the Year;

• Environmental Stewardship of the Year;

• Most Transformed Company of the Year; and

• The Artisan Award of the Year.

Both SEIFSA members and non-members are eligible for entry.


SEIFSA AWARDS FOR EXCELLENCE

SEIFSA Awards for Excellence closing date for entries is looming

JOHANNESBURG, 20 APRIL 2021 – The Steel and Engineering Industries Federation of Southern Africa is calling on companies in the Metals and Engineering (M&E) industry to submit their entries for the seventh edition of the SEIFSA Awards for Excellence as the 4 May 2021 deadline is fast approaching.

The awards recognise excellence and honour small, medium and giant manufacturers that promote innovation, transformation, skills development, a safe working environment, good business ethics and excellence. These awards are open both to members and non-members of SEIFSA, with the winners serving as benchmarks in the industry – as role models to be emulated by other companies. 

SEIFSA CEO Kaizer Nyatsumba said the importance of the Awards could not be understated. For the winning companies, the Awards serve to reinforce their credibility and reputation among not only their customers, but also their competitors and other stakeholders such as the media and their communities.

“Recognition as a leader in innovation or transformation or any of the other category comes with a competitive advantage at a time when customers are more discerning than ever thanks to impact of technology,” he said, adding that SEIFSA is honoured to play a role in endorsing and celebrating companies that are committed to doing things better all the time.

The entrants will be assessed on their performance during the period 1 July 2019 to 31 December 2020 in seven different categories, namely:

  • The Most Innovative Company of the Year, which will be awarded to a company that showed the best level of innovation in research and development or production;
  • The Health and Safety Award of the Year will be awarded to a company with the best legal compliance record in Health and Safety or the lowest Lost-Time Injury Frequency rate;
  • The company rated the highest in customer service performance between July 2019 and December 2020 will receive the Customer Service Award of the Year;
  • The Environmental Stewardship Award will go to a company that has successfully implemented greening initiatives in its day-to-day business operations;
  • The Artisan Award will be made to the company that trained the highest number of artisans during the 18-month period under review;
  • The Best CSI Award will be presented to a company whose corporate social investment programme/s between July 2019 and December 2020 have had a major impact on the lives of its beneficiaries; and
  • The Most Transformed Company of the Year Award category is split into two groups by company size: the first covers companies employing fewer than 100 people and the second looks at companies employing more than 100 people. This is to ensure that companies are judged against their peers to encourage fairness.

The winners will be honoured at a Gala Ceremony to be held on 20 May 2021.

Last year’s awards saw Centurion Systems walk away with the Most Innovative Company of the Year Award, while Pamodzi Unique Engineering won the Most Transformed Company of the Year Award and Babcock Ntuthuko Engineering won the Health and Safety Award of the Year. Other winners were Beka Schreder, which took home the Award for Best Corporate Social Responsibility of the Year and Kgabo Cars and Training & Services, which won the Artisan of the Year Award.


Metals And Engineering Indaba

Metals and Engineering Indaba to bring industry players together to find ways to revive manufacturing

The sixth edition of the Southern African Metals and Engineering Indaba will take place from 24 to 25 May 2021 at the IDC Auditorium in Sandton, Johannesburg.

The Indaba, organised by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), will bring together businesses, labour, civil society and the Government on a single platform to find solutions to challenges plaguing the manufacturing sector in South Africa.

Under the theme “Surviving Tough Times and Growing the Economy”, the Indaba takes place at a time when South Africa’s manufacturing industry, and the Metals and Engineering subsector in particular, is struggling to survive following years of rising energy costs, unreliable power supply, transport challenges, increased competition due to cheap imports and reduced demand for its products. The sector now contributes only 12% to GDP, significantly down from the estimated 25% it used to contribute in 1990s. With South Africa’s economy struggling amid the COVID-19 pandemic, it is now more urgent than ever for all stakeholders to find solutions to rescue the sector so that it, in turn, can help drive economic recovery. 

SEIFSA CEO Kaizer Nyatsumba said as with previous Indabas before it, this edition will shine the spotlight on matters affecting manufacturing in the country. “It has long been recognised that our economic growth depends on the existence of a thriving manufacturing sector. However, over the years, we have seen the sector shed rather than create much-needed jobs. It is now up to us, as stakeholders from both the public and private sector, to collectively find ways to arrest its decline,” he said. 

Topics that will be discussed at the Indaba include South Africa’s readiness to embrace the fourth industrial revolution in manufacturing; the formation of a scrap metal exchange to benefit local manufacturers; the African Continental Free Trade Area and the opportunities it brings for South African businesses; an update on the Steel Master Plan and striking a balance between growth and environmental sustainability.Confirmed speakers include Minister of Public Enterprises Pravin Gordhan, Transnet CEO Portia Derby, Eskom CEO Andre de Ruyter, energy expert Ted Blom, leader of the Movement for One South Africa Mmusi Maimane, and Secretary-General of the African Continental Free Trade Area Wamkele Mene.