The construction industry is showing signs of recovery, with expected government infrastructure expenditure, retail developments and residential building projects set to lift the industry considerably above last year's level, says the Aggregate and Sand Producers Association of Southern Africa (Aspasa).
- Good growth is being indicated in the residential market, especially in terms of affordable housing.
- Aspasa notes that the number of building plans passed is rising steadily, with banks' high availability of mortgages indicating that 2015 will be a good year for construction.
- The recovery of the construction industry is expected to have a positive effect on the aggregates and sand industry, which accounts for more than 11% of all building materials sold by value in South Africa.
- Expect confidence to return to the construction sector, which will have a positive effect.
- When government releases the funding for its R800-billion infrastructure projects, the industry will see further growth and this should sustain the expansion of the aggregates industry, fuelled by large-scale construction which requires large quantities of sand and aggregates
- A construction recovery is considered a welcome boost for the quarrying industry and will have positive spin-offs for its large workforce and related industries.