Construction Industry Remains in Crisis

MBA WC Logo.jpg

“The South African construction industry is under severe pressure,” said Allen Bodill, Immediate Past President of the Master Builders Association of the Western Cape (MBAWC) at the organisation’s recent Annual General Meeting. “While interest rates have been driven down even further, and now sit at the lowest level for some thirty years, this development has not translated, in any broad measure, to a noticeable uptick in activity, or confidence amongst developers of property.”

“Furthermore, it’s no secret that the consumer continues to be battered by rising costs, with fuel, utilities and food being the obvious areas where we continue to see rampant cost increases. So this does not bode particularly well for an industry that is trying to drag itself up from the bottom of a cycle, which has been the most severe since the Second World War.”

“In addition, we have unbridled and growing unemployment, which has recently been exposed to the challenge of industrial action in the demand for higher wages, leading to the tragedy recently witnessed at the Platinum mine. For those of you who watch the BBC and Sky News, you may also have noticed how much coverage these tragic events enjoyed on the international stage—not a glowing advertisement for foreign investors at all!”

“Thus it’s not surprising that the Bureau for Economic Research’s building survey results for the third quarter of the year still reflect an industry that is struggling to exit recession.”

Rob McMahon, who has taken over the reins from Bodill as MBAWC President, with Craig Bain and John Matthews elected as Vice Presidents, said, “The biggest challenge we face is the lack of construction work our members have to cope with. We have become so used to talking about the crisis in the construction industry that some commentators are already asking ‘What crisis?’ Uncertainty is the new normal. That is perhaps a frightening prospect but my view is that the real challenge could very well be facing this new reality. I think that as individuals and as businesses we are reasonably well-equipped to deal with the road ahead. I do however feel that membership of our Association can only add to our capacity to handle whatever lies ahead.”

MBAWC Executive Director, Rob Johnson shared, “The association has welcomed the election of Rob as he has had a long standing relationship with the industry since 1978 and has been a member of the MBAWC Executive Committee since 2006. Having served as Vice President for the past two years, his colleagues are fully confident in his ability to lead the MBA into our organisation’s 122nd year – whatever it may hold for our industry.”     

A highlight of the AGM was the announcement of the winners and runners up of the Regional Safety Competition, along with awards for Safety Company of the Year and Safety Person of the Year which went to Stefanutti Stocks (Pty) Ltd and their SHEQ Manager Craig Sheehan.

comments powered by Disqus

This edition

Issue 29


TPM_Editor Old boy brings new life to Joburg school buildings using Corobrik’s quality face bricks 3 months - reply - retweet - favorite

TPM_Editor Global pump manufacturer obtains level 1 B-BBEE certification 7 months - reply - retweet - favorite

TPM_Editor IDT works on Tshwane inner city heritage project for Public Works 7 months - reply - retweet - favorite