Tuesday, 16 June 2015 12:30

BMI Report indicates stability and Offshore Industry Growth

A report compiled by Building Research Strategy Consulting Unit (BMI) indicates that South Africa's inflation rate is to remain stable and that large construction firms are not committing to certain market segments that are deemed less feasible or critical to their future sustainability.

Growth is being sought outside the country's borders and it is reported that some of the largest construction firms are generating up to 60% of their revenue offshore. As a result of lower demand for building material, suppliers are currently being underused and there is spare capacity in these operations.

  • Expansion plans have also largely been put on hold.
  • The National Development Plan includes plans to build 1.5-million houses in the next six years. (yearly investment of between R30-billion and R35-billion has been allocated).
  • Plans to upgrade and expand road, rail, power generation and other infrastructure will further unlock the construction industry and will result in the full use of resources and expansions being undertaken once again wherever these are required.

The labour-intensive nature of quarries and the further processing and transport of materials are a major contributor to employment in the country and, therefore, growth of the industry can have an overwhelmingly positive effect on overall employment figures in South Africa.