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The Construction Trends in South Africa 2021

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    Report

  • 30 Pages
  • November 2021
  • Region: South Africa
  • Who Owns Whom
  • ID: 5892685

Trends in The South African Construction Industry

The construction industry is a driver of socio-economic development and a key employment multiplier, yet despite its strategic importance, the last few years have not been kind to the South African construction industry, with a persistently sluggish economy, disruption on construction sites, the ever- present shadow of corruption and COVID-19 weighing down on the industry.

Report Coverage

This report focuses on trends in the overall South African construction industry. It includes information on the key trends, success factors and pain points relevant to the industry, whilst analysing in depth such issues as local growth trends, current confidence levels, employment movements, rising input costs and the overall health of the industry. The rationale for South African companies to internationalise is investigated, premised on a clear analysis of the drivers of the African construction industry.

The Size of The Industry

The construction industry contributed R134.bn in gross value added at current prices to the South African economy in 2020 (2.7% share of the total GDP). The value added is a direct function of the level of investment in the industry as measured by the gross fixed capital formation (GFCF) in construction, which stood at R308.2bn in 2020. This report tracks the performance of the industry from its heydays pre-World Cup 2010 and more currently since 2017, by investigating the reasons for the decline to its current levels.

Outlook

The growth prospects of the industry in the medium- to longer-term remains positive. Whilst
the impact of COVID-19 was severe, the effects of the pandemic will eventually be worked out of the system. It may even leave the industry with better, more sound business practises. However, to attain a growing construction industry going forward will require some belt tightening, greater initiatives and focus to find new work and further diversification by the industry players. But the greatest responsibility for success lays at the feet of Government who needs to deliver on their promised infrastructure projects - these promises are only of value to contractors as and when the work materialises.

Table of Contents

1. INTRODUCTION
2. DESCRIPTION OF THE INDUSTRY
2.1 Industry Value Chain
2.2 Size of the Industry
2.3 Key Success Factors and Pain Points
2.4 Key Trends
3. LOCAL
3.1 Local Growth Trends
3.2 Current Confidence Levels in the Industry
3.3 Labour
3.4 Rising Input Costs
3.5 Building Plans Passed and Buildings Completed
4. AFRICA
5. INFLUENCING FACTORS
5.1 COVID-19
5.3 Investment (Gross Fixed Capital Formation)
6. OUTLOOK7. INDUSTRY ASSOCIATIONS8. REFERENCES

Companies Mentioned

  • A and R Engineering and Mining Supplies (Pty) Ltd
  • Advanced Bitumen Products Ltd
  • Almar Investments (Pty) Ltd
  • Arnott Panels (Pty) Ltd
  • Aveng (Pty) Ltd
  • Axsys Projects (Pty) Ltd
  • Babcock MCS Mozambique Lda
  • Babcock Mocambique Lda
  • Babcock Namibia Services (Pty) Ltd
  • Basil Read Holdings Ltd
  • Basil Read St Helena Ltd
  • Bilfinger Intervalve Africa (Pty) Ltd
  • Bluhm Burton Engineering (Pty) Ltd
  • Bosch Projects (Pty) Ltd
  • Building Energy Uganda Ltd
  • Byrne Bros (Formwork) Ltd
  • Byrne Group Ltd
  • Byrne Plant Ltd
  • Cape Scaffolding Contractors (Pty) Ltd
  • Cato Ridge Electrical Construction (Pty) Ltd
  • Chaba Wind Power (RF) (Pty) Ltd
  • Chorus Group Holdings Ltd
  • Chorus Group Ltd
  • Colas Africa Holdings (Pty) Ltd
  • Concor Construction (Pty) Ltd
  • Consolidated Building Materials (Pty) Ltd
  • Construction Maintenance Services (Pty) Ltd
  • Danoher Botswana (Pty) Ltd
  • Diabor (Pty) Ltd
  • Edwin Construction (Pty) Ltd
  • Embedded IQ (Pty) Ltd
  • Embedded Works (Pty) Ltd
  • Enza Construction (Pty) Ltd
  • Esor Ltd
  • EXR Construction (Pty) Ltd
  • Fairbrother Geotechnical Engineering (Pty) Ltd
  • FB Ellmer Ltd
  • Fikile Construction (Pty) Ltd
  • Fluor South Africa (Pty) Ltd
  • Form-Scaff (Kenya) Pty Ltd
  • Fraser Alexander (Chile) SA
  • Fraser Alexander Lesotho (Pty) Ltd
  • Fraser Alexander Mozambique Ltda
  • Fraser Alexander Servicos de Mineracao do Brasil Ltda
  • Fraser Alexander Zambia Ltd
  • Geomechanics (Pty) Ltd
  • Gigawatt Mozambique SA Ltda
  • Grinaker LTA (Pty) Ltd
  • Group Five Construction (Pty) Ltd
  • Grunwald Construction (Pty) Ltd
  • Hall Core (Pty) Ltd
  • Hatch Africa (Pty) Ltd
  • Haw and Inglis Civil Engineering (Pty) Ltd
  • Hill Construction Namibia (Pty) Ltd
  • Hillary Construction Botswana (Pty) Ltd
  • Hillary Construction Zambia Ltd
  • Infralink Pvt Ltd
  • Isowall Southern Africa (Pty) Ltd
  • Johannesburg Scaffolding (Pty) Ltd
  • Johnson Controls International (Pty) Ltd
  • Kaefer Energy Projects (Pty) Ltd
  • Keller Geotechnics ESC (Pty) Ltd
  • Kwik-Form Angola Lda
  • Kwikform Botswana (Pty) Ltd
  • Kwikspace Modular Buildings (Pty) Ltd
  • Lamp Room Solutions and Consulting (Pty) Ltd
  • LTA Construction (Kenya) Ltd
  • M C E Fabrication and Construction (Pty) Ltd
  • Malinga Scaffolding and Formowork (Pty) Ltd
  • Master Drilling Ghana Ltd
  • Mazor Group (Pty) Ltd
  • Motheo Construction Group (Pty) Ltd
  • Moxie Digital (Pty) Ltd
  • Murray & Roberts (Botswana) (Pty) Ltd
  • Murray & Roberts Contractors Investments (Botswana) Ltd
  • Murray and Roberts Construction Kenya Ltd
  • Murray and Roberts Construction Ltd
  • Murray and Roberts Construction Uganda Ltd
  • O'Keefe Demolition (Byrne Group) Ltd
  • Orapa FRD JV
  • Pendle Russells Ltd
  • Pezula Access Scaffolding (Pty) Ltd
  • Power Civil and Building Contractors Namibia
  • Power Construction (Pty) Ltd
  • ProFix Scaffolding (Pty) Ltd
  • PTMax Solutions
  • Quanta Homes 2 Ltd
  • Quanta Homes 3 Ltd
  • Ramutsa Rail CC
  • Raubex Construction (Pty) Ltd
  • Raubex Construction Zimbabwe (Pvt) Ltd
  • Raubex Group Ltd
  • Raubex Lesotho (Pty) Ltd
  • Raubex Lesotho Construction (Pty) Ltd
  • Raubex Ltd
  • Raubex Pty Ltd
  • Ridgeway Construction (Pty) Ltd
  • Ro-Al Construction (Pty) Ltd
  • Russells Ltd
  • SA Scaffold Manufacturing (Pty) Ltd
  • South African National Roads Agency SOC Ltd (The)
  • Stefanutti Stocks Holdings Ltd
  • TCM Developments (Pty) Ltd
  • Tecroveer (Pty) Ltd
  • thyssenkrupp Industrial Solutions (Mozambique) Ltda
  • Tiber Construction (Pty) Ltd
  • Tisang Group (Pty) Ltd
  • TN Molefe Construction (Pty) Ltd
  • Top Fix (Pty) Ltd
  • Trans-Africa Projects Ltd
  • Trencon Construction (Pty) Ltd
  • Umso Construction (Pty) Ltd
  • Viva Formwork and Scaffolding (Cape Town) (Pty) Ltd
  • Waainek Wind Power (RF) (Pty) Ltd
  • Waco (Lesotho) Pty Ltd
  • Waco Africa (Pty) Ltd
  • Waco Ao Holdings Lda
  • WBHO Burkina Faso Sarl
  • WBHO Construction UK Ltd
  • WBHO Guinea Construction Ltd
  • WBHO Guinea Projects Ltd
  • WBHO International Botswana Ltd
  • WBHO Tanzania Ltd
  • WBHO UK Ltd
  • WBHO/CCC JV
  • WBHO/MBS JV
  • Westforce Construction Pty Ltd
  • Westforce Hire Pty Ltd
  • Wilson Bayly Holmes-Ovcon Ltd
  • WK Construction (Pty) Ltd
  • WK Construction South Africa (Pty) Ltd
  • Wood South Africa (Pty) Ltd

Methodology

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