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Building & construction

Growth expected after 2010

After more than 25 years of decline, the South African construction industry is currently experiencing significant growth – which will be sustained well after 2010. This growth in infrastructure investment is being driven by both public and private sector demand.
Public sector investment (and in fact concomitant private sector investment) is being driven by the government’s Accelerated and Shared Growth Initiative for South Africa (AsgiSA). AsgiSA is a national initiative that addresses both the first and second economies, aiming to unlock binding constraints to growth. It targets an economic growth rate of 6% and aims to halve poverty and unemployment by 2014. AsgiSA hinges on growing investment in infrastructure – at a rate of growth well beyond that of the economy.

The successful delivery of the government and the private sector infrastructure programmes depends on the effective functioning of many stakeholders – including the building and construction materials sector. Without the necessary building and construction materials being available and delivered timeously, and at an appropriate price and quality, these infrastructure delivery programmes could well falter.

Against the need for a healthy building and construction materials sector, the cidb has developed this report on the building and construction materials sector. A key focus of this study has been on:
• opportunities and challenges in the building and construction materials sector, and specifically;
• opportunities for new job creation, enterprise development, and empowerment in the building and construction materials sector.

You can read the full report here: The building and construction materials sector, challenges and opportunities

This report draws extensively on a report by Dr Lewelyn B Lewis of BMI-BRSCU that was commissioned by the dti and the cidb1.

Hard hit after 2010

The South African construction industry was particularly hard hit when the infrastructure development highs leading up to the 2010 FIFA World
Cup were followed by a global recession and/or depressed growth. Statistics detailing the decline of the industry over the last three years
have been well publicised. The discrepancy between the performance of the construction index and the JSE all-share index is stark. Not only has the industry been punished for its lacklustre financial performance in the down cycle, but also because of public perception following the Competition Commission process, findings and settlement.

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