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Easing Consumer Inflation

Easing Consumer Inflation Bodes Well For Business and Consumers

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Johannesburg, 22 May 2019 – The official inflation number released by Statistics South Africa (Stats SA) today bodes well for businesses and consumers overwhelmed by persistent, recent increases in fuel prices and a depreciating currency  which makes imported inputs more expensive, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said this morning.

The annual consumer price inflation (CPI) slowed marginally to 4.4 percent in April 2019, from 4.5 percent in March 2019. The month-on-month movement in the consumer price index was 0.6 percent in April 2019.

“Given that the data eased well within the South African Reserve Bank’s (SARB) inflation target band, the downward trajectory is welcome. The release of the CPI data, which comes a day before the SARB is set to make an announcement on interest rates and inflation, will invariably impact on how Monetary Policy Committee (MPC) members may vote,” SEIFSA Economist Marique Kruger said.

She added that the slowdown in the official inflation number bodes well for companies in the Metals and Engineering (M&E) sector in particular and the broader manufacturing sector, as it reduces both operational costs and the cost of goods soldHowever, she warned that increasing input costs may add to high fuel prices which, together with the weaker rand, may impact negatively on business margins.

“It is against the backdrop of continuously rising intermediate input costs that a prudent suggestion is made for the SARB’s MPC to leave interest rates unchanged tomorrow in order to contain business costs and support businesses under duress,” Ms Kruger concluded.

 

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.meindaba. seifsa.co.za

Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
Five Reasons to Train

FIVE REASONS TO TRAIN YOUR STAFF AT SEIFSA

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1. SEIFSA Represents the Metals and Engineering Industries

When looking for a training provider, researching a training provider’s track record is smart business practice. Primarily, there are two things to consider:

  • For how long has this company been training?
  • Have they worked with a company such as yours in the past?

As a Federation, SEIFSA has represented the metals and engineering sector since 1943. SEIFSA has pushed for the industry’s best interests since for more than 75 years.

Today, SEIFSA is a Federation comprising 21 affiliated Employer Associations consisting of over 1200 companies in the metals and engineering cluster of industries. Companies range in size from gargantuan to small and micro businesses employing 10 employees all the way up to thousands.

SEIFSA’s core mandate from year to year is to collect mandates from all of the federated member Associations. These mandates are a compilation of the thoughts and ideas of people from the sector who deal with the day-to-day realities of running companies. Industrial relations, Skills Development, Tenders and Safety Legislation, among other things, are the main issues that challenge everyone in the sector – and SEIFSA provides a one-stop shop for industry solutions.

Our Federation’s goals are aligned with more than 10,000 companies that constitute the metals and engineering sector – its unique culture, concerns, day-to-day realities, future expectations and goals. Thus, we have a keener and more mature eye for what keeps businesses moving forward and competitive in the metals and engineering sector.

2. Positioning the Metals and Engineering Sector for Growth

The Main Agreement is perhaps by far the most prominent example of our desire for growth and working in partnership with all stakeholders. It is the metals and engineering industries’ industrial relations handbook or “playbook”.

As SEIFSA, we played one of the leading roles in the Main Agreement’s negotiation and implementation.

No other training provider can claim to have more knowledge about the Main Agreement than SEIFSA.  At its core, this Agreement is meant to bring about stability, reduce the chances of strikes and ensure smoother operations on a day-to-day basis for many companies.

It is the sector’s select version of dealing with challenges that cause disruption to companies. It gives way to wage-paying grades and working systems that allow companies to operate on a level playing field in the sector. We offer training on aspects directly connected thereto in order to help companies achieve maximum results in their daily operations (Link to Training Courses).

Another unique training product is SEIFSA’s “Theory and Calculation of Cost Price Adjustment”. This course is run by the Economics and Commercial Division as a support programme for SEIFSA’s Price and Index Pages (PIPS). These two powerful products give companies the edge when competing for Tenders. A company has a considerably reduced chance if it applies for a tender without using the SEIFSA PIPS.

3. Personal Touch: Unique and Customisable

A question that should be asked when sourcing a training provider is: Is the content they provide customized, generic or “off the shelf”?

Why?

Context matters just as much as content.

When SEIFSA trains people, we are aware of who is in the room; we are aware of their needs; and we can be relied upon to provide further assistance. The SEIFSA team has the experience and expertise to consolidate with one-on-one consultations or in-house training for large groups within a particular company.

This is how SEIFSA demonstrates relevance and an in-depth knowledge through our various subject-matter experts and four Divisions, namely:

Training is a massively beneficial tool for an organisation’s workforce, but it can be a major disappointment when willing participants think or realise that the trainer demonstrates a lack of knowledge or buy-in with regards to the sector. In these instances, people are bound to be disengaged with the content and disregard both the trainer and his/her knowledge altogether.

Our team of trainers and consultants – including our Alliance Partners – consists of experts that have operated in the industry and provided training for decades.

SEIFSA takes this aspect very seriously and is committed to a great trainee experience. We ask for feedback from companies we train, at our offices or in-house, and run a professional feedback service that help us to improve our service constantly.

4. Accreditation

In March 2019, SEIFSA received renewal of its accreditation as a Skills Development Provider and Assessment Centre. SEIFSA has accreditation under four Qualification Titles under the Further Education and Training (FETC) Certification Programme:

  • FETC – Generic Management:
  • FETC – Inventory Control,
  • FETC – Manufacturing Control,
  • FETC – Planning and Scheduling Techniques and Process Manufacturing.

SEIFSA Training has become “the tip of the arrow” and its courses offer the required stamp of approval.

Five Reasons to Train

5. Follow-up, Guidance and Career Assistance

Learning is not an event. We know it is part of your journey. SEIFSA Training is designed to make you and the company you represent better.

Our system:

  • Helps trainees assess whether they are ready to apply what they have learned;
  • Gives you evidence, proving to you and your business that you have improved your capabilities in a key area of your business;
  • Gives you a clear way to proceed if information demonstrates what you need to improve upon in your business environment;
  • Gives you guidance as to your progress with regards to policies and/or legislation that need your company’s compliance; and

Leverages your recognition of prior learning (RPL) to enhance your career path.

Five Reasons to Train - Book Training
SEIFSA SA FLAG 300x300

POLITICAL STABILITY, ECONOMIC GROWTH, RELIABLE POWER SUPPLY MUST BE AT THE TOP OF THE WINNING PARTY’S AGENDA

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Johannesburg, 7 May 2019 – Political stability, policy certainty, economic growth as well as reliable and uninterrupted power supply are some of the most important items that should feature prominently on the list of the winning political party’s agenda, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) CEO Kaizer Nyatsumba said today.

Speaking ahead of tomorrow’s elections, Mr Nyatsumba said given the tough economic conditions that South Africa currently finds itself in, it is of paramount importance that the winning political party prioritizes economic growth, which would in turn contribute towards reversing social ills that are a direct result of stagnation, such as high unemployment rates, poverty and crime.

“Political stability and policy certainty are a pre-requisite for any country’s economic growth. In South Africa, political stability can ignite economic growth and generate much-needed employment, especially for the millions of young people who are neither in education nor employment,” Mr Nyatsumba said.

He added that for economic growth to happen, South Africa needs to ensure that there is also policy certainty and coherence as well as solid infrastructure, such as reliable and uninterrupted power supply. He said he was hopeful that the new administration would also tackle rampant corruption and maladministration, which would in turn boost investor confidence and improve South Africa’s credit ratings.

On the metals and engineering sector, Mr Nyatsumba said as a Federation representing companies operating in this crucial sector, SEIFSA calls upon the winning party or parties to be effective in implementing and monitoring designation of local content in production processes across all value chains.

He also called on the new administration to prioritise local businesses in all investment and construction projects, including Black Economic Empowerment partners in order to comply with South African rules designed to address racial disparities which continue to exist more than two decades after the end of apartheid

Mr Nyatsumba also called on all eligible South Africans to ensure that they exercise their right to vote in this election. He said that an election was a very concrete demonstration of the fact that power comes from ordinary citizens, to whom elected officials should always be accountable.

In conclusion, Mr Nyatsumba said SEIFSA stands ready to work hand in hand with the new administration in rebuilding South Africa’s economy and creating much-needed jobs.

“We remain committed to reversing the economic fortunes of our beloved country and are eager to engage robustly with the new leadership that will emerge after the elections,” Mr Nyatsumba said.

Ends

 

Issued by:

Ollie Madlala

Communications Manager

Tel: (011) 298 9411 / 082 602 1725

Email: ollie@seifsa.co.za

Web: www.seifsa.co.za

SEIFSA to Celebrate Companies

Fifth Annual SEIFSA Awards For Excellence See Record Increase In Entries

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Johannesburg, 5 May 2019 – THE 2019 SEIFSA Awards for Excellence have seen a record increase in the number of entries received, indicating their growing popularity and prestige, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) CEO Kaizer Nyatsumba said this morning.

Speaking after the Awards adjudication process, which took place yesterday (Thursday), Mr Nyatsumba said the increase in the number of entries submitted across the seven categories confirms that the SEIFSA Awards for Excellence have, indeed, grown in leaps and bounds over the years.

Born five years ago out of the need to encourage growth and celebrate excellence in the metals and engineering sector, the SEIFSA Awards for Excellence, through their seven categories, offer a wonderful opportunity for companies operating in the crucial metals and engineering sector to receive well-deserved acknowledgement and respect by industry peers for their capabilities, expertise and innovation.

This year, Mr Nyatsumba said the winner and the runner-up in the Most Innovative Company of the Year category will also get free entry tickets to attend the South African Innovation Summit, which will take place in Cape Town in September.

Meanwhile, Mr Nyatsumba also announced that Youth Employment Services (YES) CEO Tashmia Ismail-Saville will be the 2019 Guest Speaker at the event. A joint initiative between business, labour and government, YES was created to address South Africa’s youth unemployment challenge by creating one million work experiences in the country.

“The challenge of youth unemployment is a serious one and calls for Government, business and labour to work together to address it. It is for this reason that we have invited Ms Ismail-Saville to be the Guest Speaker at this year’s SEIFSA Awards for Excellence,” Mr Nyatsumba said.

Winners of the 2019 SEIFSA Awards for Excellence will be announced at a ceremony that will take place at the Sunnyside Park Hotel in Parktown, Johannesburg on 23 May 2019.

 

Issued by:

Ollie Madlala

Communications Manager

Tel: (011) 298 9411 / 082 602 1725

Email: ollie@seifsa.co.za

Web: www.meindaba. seifsa.co.za

 

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
Awards Thumbnail

SEIFSA AWARDS FOR EXCELLENCE – FINAL CALL FOR ENTRIES

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Johannesburg, 26 April 2019 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has urged companies that are yet to submit entries for the 2019 SEIFSA Awards for Excellence to do so before tonight’s midnight deadline.

Now in their fifth year, the Annual SEIFSA Awards for Excellence, which are open to all employers in the metals and engineering sector –  including those which are non-SEIFSA members –  offer a wonderful opportunity for companies operating in the metals and engineering sector to receive well-deserved acknowledgement and respect by industry peers for their capabilities, expertise and innovation.

SEIFSA Chief Executive Officer Kaizer Nyatsumba said the Awards were born of a need to encourage growth and celebrate excellence in the crucial metals and engineering sector.

“In such tough economic conditions, we at SEIFSA believe that it is of paramount importance for those companies that still excel at what they do, in spite of the economic challenges, to get the acknowledgement and recognition they so richly deserve. It is against this backdrop that we encourage manufacturers operating in the metals and engineering sector to take advantage of the opportunities for recognition offered by the increasingly prestigious SEIFSA Awards for Excellence and submit their entries for the seven categories before the midnight deadline tonight,” Mr Nyatsumba said.

Last Day To Book

Entrants will be assessed on their performance in the period July 1 2017 to December 31 2018 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 between July 2017 and December 2018;
  • The Health and Safety Award of the Year will be offered to a company with the best legal compliance record in Health and Safety or the lowest Lost-Time Injury Frequency rate in 2018;
  • The company rated the highest in customer service performance between July 2017 and December 2018 will receive the Customer Service Award of the Year; and
  • The Environmental Stewardship Award will go to a company that has successfully implemented greening initiatives in its day-to-day business operations between July 2017 and December 2018.
  • This is the Decade of the Artisan, and an award will be made to the company that trained the highest number of artisans between July 2017 and December 2018;
  • The Best CSI Award will be presented to a company whose corporate social investment programme/s between July 2017 and December 2018 had a major impact on the lives of its beneficiaries.
  • The Most Transformed Company of the Year Award category is split into two by company size: the first covers companies employing fewer than 100 people and the second one looks at companies employing more than 100 people. This, according to Mr Nyatsumba, ensures that companies are judged against their peers to encourage fairness.

The 2019 Award winners will be honoured at a ceremony that will take place at the IDC Conference Centre in Sandton on 23 May 2019.

 

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.meindaba. seifsa.co.za

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
Last Day To Book

Continuous Improvement in Selling Price Inflation Encouraging For Producers in The Metals And Engineering Cluster

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Johannesburg, 25 April 2019 – The latest Producer Price Index (PPI) data for intermediate manufactured goods indicating a further improvement in selling price inflation in the Metals and Engineering (M&E) sector for March 2019 is encouraging, says the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).

The data, released by Statistics South Africa (Stats SA) today, shows that the annual percentage change in the PPI for intermediate manufactured goods –  which is a proxy for selling price inflation for the M&E cluster –  improved alongside the PPI for final manufactured goods. On a year-on-year basis, the PPI for intermediate manufactured goods increased to 6.3 percent in March 2019, from the 3.9 percent recorded in February 2019. The main contributors to the annual rate of 6.3 percent were basic and fabricated metals and chemicals, rubber and plastic products. Contemporaneously, the PPI for final manufactured goods for the broader manufacturing sector also registered an increase of 6.2 percent in March 2019 from 4.7 percent in February 2019

“Against the backdrop of stalled domestic demand, unpredictable energy supply, ballooning petrol prices which add to increasing logistics costs, the improvement in the PPI for intermediate manufactured goods augurs well for the sub-components of the M&E cluster, which now have more leeway to manoeuvre around high operational and intermediate costs,” SEIFSFA Chief Economist Michael Ade said.

He added that the second-round effects of fuel price increases are usually difficult for small and medium enterprises. Given that businesses in the value chain and service providers – including logistics companies – gradually pass the increases in fuel prices on to their customers, resulting in high operational costs, the improvement in PPI is encouraging.

Dr Ade said better selling prices enable businesses to improve on existing margins and it is, therefore, imperative that a positive differential between input cost inflation and selling price inflation be maintained.

 

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.seifsa.co.za

 

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
SEIFSA to Celebrate Companies

SEIFSA Awards For Excellence – Deadline Looming For Entries

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Johannesburg, 25 April 2019 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has urged companies operating in the metals and engineering sector to make use of the remaining two days to enter the 2019 SEIFSA Awards for Excellence, which are open to all employers in the sector, including those which are not members of SEIFSA.

Now in their fifth year, the Annual SEIFSA Awards for Excellence were born of a need to encourage growth and celebrate excellence in the metals and engineering sector. The Awards offer a wonderful opportunity for companies operating in this crucial sector to receive well-deserved acknowledgement and respect by industry peers for their capabilities, expertise and innovation.

“In the current tough economic conditions, we at SEIFSA believe that it is of paramount importance for those companies that excel at what they do to get the acknowledgement and recognition they so richly deserve. It is against this backdrop that we encourage manufacturers operating in the metals and engineering sector to take advantage of the opportunities for recognition offered by the increasingly prestigious SEIFSA Awards for Excellence and submit their entries for the seven categories before tomorrow’s deadline date (Friday, 26 April 2019), SEIFSA Chief Executive Officer Kaizer Nyatsumba said.

Mr Nyatsumba said entrants will be assessed on their performance in the period July 1 2017 to December 31 2018 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 between July 2017 and December 2018;
  • The Health and Safety Award of the Year will be offered to a company with the best legal compliance record in Health and Safety or the lowest Lost-Time Injury Frequency rate in 2018;
  • The company rated the highest in customer service performance between July 2017 and December 2018 will receive the Customer Service Award of the Year; and
  • The Environmental Stewardship Award will go to a company that has successfully implemented greening initiatives in its day-to-day business operations between July 2017 and December 2018.
  • This is the Decade of the Artisan, and an award will be made to the company that trained the highest number of artisans between July 2017 and December 2018;
  • The Best CSI Award will be presented to a company whose corporate social investment programme/s between July 2017 and December 2018 had a major impact on the lives of its beneficiaries.
  • The Most Transformed Company of the Year Award category is split into two by company size: the first covers companies employing fewer than 100 people and the second one looks at companies employing more than 100 people. This, according to Mr Nyatsumba, ensures that companies are judged against their peers to encourage fairness.

The 2019 Award winners will be honoured at a ceremony that will take place at the IDC Conference Centre in Sandton on 23 May 2019.

 

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.meindaba. seifsa.co.za

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
Kaizer Nyatsumba

The Government and Law-Enforcement Agencies Should Protect Business from Local Thugs

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The new tendency of pseudo-entrepreneurs demanding a stake in public tenders won by companies poses a serious threat to the country and its economy, argues Kaizer Nyatsumba.

A society’s descent into lawlessness does not happen overnight. It takes place over a number of months and years, often indirectly encouraged by authorities’ failure to take decisive, punitive action against those committing various criminal acts. Inevitably, a society whose leaders tolerate – or conveniently turn a blind eye to – any form of criminality or malfeasance deteriorates over time into a state of utter anarchy.

South Africa is not there yet, but it could easily get there if the situation is not arrested speedily.

Until recently, far too many people in this country got away with so much. As has become evident from the various commissions of enquiry currently taking place in the country, many among our political leaders and those connected or close to them have committed many vile deeds with absolute impunity. They have looted with gay abandon and lived well beyond their legal means. They have turned public office and entities into their own private fiefdoms and milked them dry.

Among the consequences, as we have witnessed in recent days, has been the rolling load shedding that has been visited upon us by Eskom and firmly consigned us to the status of a backward, third-world country. However, perhaps the most insidious consequence of the general criminality by some political mandarins has been the unwitting setting, for the ordinary citizen, of an example that it is fine – if not commendable – to cut corners, to steal and generally to break the law. After all, if putative leaders can shamelessly engage in such activities and get away with it, then, the logic will go, it must similarly be fine for ordinary citizens to do the same.

South Africa desperately needs an urgent, sustained crackdown on all forms of crime, from the most heinous to the apparently benign. That crackdown should focus as much on those in the private sector and ordinary individuals, as it should on those in the private sector. We need a sustained effort aimed at inculcating a new culture of zero tolerance for crime.

While we welcome the good work done by the various commissions of enquiry established by President Cyril Ramaphosa, we wait with bated breath to see if widespread arrests, prosecutions and convictions – especially of prominent, high-profile individuals – will follow suit. Were that to happen consistently, it would go a long way towards sending a powerful message to all and sundry not only that corruption will not be tolerated during the era of “a new dawn”, such as it is, but also that the commission of crime will inevitably lead to dire consequences for those involved.

Precisely because of the kind of example that has been set by South Africa’s political leaders and some of their reckless pronouncements on the economy, in recent years the business community has been on the receiving end of a sustained campaign to harass and intimidate it. A new breed of opportunists – some of whom call themselves entrepreneurs – has sprung up in different parts of the country to target the business community.

Routinely, they target various companies that have won tenders from the public sector and demand 30% sub-contracting of the said business to them. They unleash violence to take over construction sites and to prevent any work from taking place, unless the companies thus victimised yielded to their vile blackmail. Often, this is in addition to members of the local communities demanding to be prioritised for employment on those projects, even if they may not have the requisite skill, experience or expertise.

This terrible culture is fast spreading to different parts of the country, in the process posing a serious threat to investment. Some companies are known to have packed up their bags and walked away from tenders that they had won, while others have even reconsidered their investments in South Africa – at a time when the country desperately requires investment to grow the economy and create jobs.

Among the companies that have been terribly affected by this scourge of lawlessness have been members of employer associations affiliated to the Steel and Engineering Industries Federation of Southern Africa (SEIFSA). Many of them have laid charges against those involved in such acts of criminality and even obtained court interdicts, all to no avail. Others, on their own or in partnership with SEIFSA, have registered their concerns with the various provincial governments and some national Cabinet Ministers.

Regrettably, none of these efforts has so far yielded positive results. Precisely because of the aforementioned culture of impunity and the general inefficiency of our police service, the thugs – who often appear to be politically connected – have continued to harass, victimize and generally terrorize the business community. In a country in which “demand” is possibly the most popular word, where everybody – including students, local communities and workers – demands something from somebody else, often the Government, these pseudo-entrepreneurs have also continued to demand, shamelessly, 30% of the value of won business opportunities.

We are not talking here about people who have sought to negotiate black economic empowerment partnerships with companies winning public tenders, or who could add some value to the companies thus cornered. Instead, these are men and women who are eager to muscle in because they can – and know that there is a high probability (if not certainty) that they will get away with it.

We in the metals and engineering sector join other sectors of the economy to call on government and the country’s law-enforcement agencies to move swiftly to bring an end to these horrible acts of intimidation, violence and economic sabotage. We fully support and champion transformation, but will have no truck with economic terrorism.

Although we have previously raised our concerns on this matter in meetings with the relevant stakeholders, including with President Ramaphosa and his Ministers during the last CEO Initiative gathering at the Union Buildings in September last year, we have not yet witnessed any change for the better. If anything, we have seen these acts of criminality spreading to other parts of the country and affecting even more of our members.

In the interest not only of our sector or the business community, but also of South Africa itself, we call on President Ramaphosa and all tiers of government to condemn this new tendency equivocally and to urge compatriots to desist therefrom, and we call on the SAPS and other law-enforcement agencies to do their work.

Kaizer M. Nyatsumba is the Chief Executive Officer of the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).

Increase In Inflation Does Not Bode Well For Beleaguered Businesses In The Metals And Engineering Cluster – Says SEIFSA

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Johannesburg, 17 April 2019 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is concerned with the latest Consumer Price Index (CPI) figures released by Statistics South Africa (StatsSA) today which reflects an increase in the general level of prices for goods and services, against the backdrop of existing volatility in fuel prices, SEIFSA Chief Economist Michael Ade said this morning.

According to the Stats SA data, the annual CPI was 4,5 percent in March 2019, up from 4,1 percent in February 2019. The index increased by 0,8 percent month-on-month in March 2019.

“The latest inflation data is of great concern to beleaguered businesses in the metals and engineering sub-sectors and the broader manufacturing sector, which are facing continuous headwinds including rising intermediate inputs costs. Moreover, over-indebted consumers are not afforded a reprieve from oscillating petrol prices and a general rise in the prices of goods and services underpinned by a weaker rand and a difficult economic environment,” said Dr Ade.

He added that consistent and unpredictable fuel prices, increasing intermediate input costs and passive domestic demand impacts negatively on the margins of businesses, also negatively affecting profitability. Dr Ade said the difficult operational environment faced by businesses is of great concern, and the added pressure in the form of higher CPI figures is worrisome. A constant rise in the general level of prices which decreases the purchasing power of the rand does not augur well for broader manufacturing which imports the bulk of its inputs.

Dr Ade said it is also disconcerting to see that CPI data is now delicately poised at the mid-point of the South African Reserve Bank’s official inflation target range of 3 percent to 6 percent.

“Given this context, businesses still have to closely monitor petrol prices, the volatile exchange rate and the unpredictability in electricity supply, as upside changes of these variables may lead to additional costs with compounding inflationary effects,” Dr Ade concluded.

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people
SEIFSA Innovative Excellence

Innovative Excellence To Be Celebrated At SEIFSA Awards

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Johannesburg, 14 April 2019 – Amongst other imperatives, South Africa’s manufacturing sector – including its metals and engineering (M&E) cluster – needs innovation to spur industrial growth, the Steel and Engineering Industries Federation (SEIFSA) said today.

Empirically, there is a growing body of work which generally highlights a strong positive correlation between innovation and industrial growth at the macro level and also between innovation and firm revenues at the micro level, the Federation said. It added that numerous research studies had reported that the most innovative companies overall were growing significantly faster than the least innovative. SEIFSA said the recorded difference for industrial manufacturing companies was dramatic, with the most innovative companies recording growth levels which were over four times those of the least innovative companies.

However, despite this empirical evidence, the M&E cluster is generally considered a laggard in innovation and technology.

“This is one of the chief reasons why we established the SEIFSA Awards for Excellence. We wanted to encourage innovation and to celebrate excellence in the metals and engineering sector,” SEIFSA Chief Executive Officer Kaizer Nyatsumba said.

“In such volatile economic times and a challenging business environment, we at SEIFSA believe that companies operating in the manufacturing sector in general and the metals and engineering sector in particular should invest in innovative technological advancements if they are to compete successfully with international players.

“We also believe that it is of critical importance that companies that excel at what they do get the acknowledgement and recognition they deserve. This is another reason we established the SEIFSA Awards for Excellence,” Mr Nyatsumba said.

Last year, adjudicators in the Most Innovative Award category were impressed by the work done by the winning company, Denwa Engineering, which used its invention in the form of a MaMoo Trailer to design and manufacture a product with local material and labour, instead of importing from an overseas-based company at an exorbitant cost and with little value add from South Africa.

This year, winning companies will, once again, be celebrated during an annual gala dinner to be held on 23 May 2019 at the IDC Conference Centre in Sandton, Johannesburg. Entries for the Awards close on 26 April 2019 for all categories.

Along with the Most Innovative Company of the Year, the SEIFSA Awards for Excellence have six other categories, namely:

  • The Health and Safety Award of the Year, which will be awarded to a company boasting the lowest Lost Time Injury Frequency Rate between July 2017 and December 2018;
  • The company rated the highest in customer service performance between July 2017 and December 2018 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 between July 2017 and December 2018;
  • This is the Decade of the Artisan, and an award will be made to the company that trained the highest number of artisans between July 2017 and December 2018;
  • The Best CSI Award will be presented to a company whose corporate social investment programme/s between July 2017 and December 2018 had a major impact on the lives of its beneficiaries; and
  • The Most Transformed Company of the Year Award will be received by a company that showed the highest transformation level in its ownership and the composition of its Board of Directors, Executive Management and Managerial Team between July 2017 and December 2018 (this award category pits companies employing fewer than 100 people against those of similar size, and companies employing more than 100 people against others of similar size).

Mr Nyatsumba encouraged companies operating in the metals and engineering sector to submit their entries for the seven categories before the deadline date of   26 April 2019. Participants can enter by visiting the SEIFSA Awards website (www.seifsaawards.co.za).

The Awards are open to all companies in the metals and engineering sector, and not only those that are members of Associations affiliated to SEIFSA. Awards winners will be honoured at a ceremony that will take place at the IDC Conference Centre in Sandton on 23 May 2019.

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.seifsa.co.za

SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.