Civil Engineering April 2022 | Vol 30 No 3

44 April 2022 Civil Engineering Metals and engineering production expands but risks remain P roduction in the metals and engineering sector started the year on a relatively strong note. On a year-on-year basis, production in the total sector expanded by 1.2% in January 2022. On a month-on-month basis between December 2021 and January 2022, production in the sector expanded 4.7%. Total sales increased by 6.2% between these two months from R67.4 billion to R71.6 billion, notes SEIFSA’s COO, Tafadzwa Chibanguza. Increases were noted in electrical machinery products (14%), rubber products (12%), and basic iron and steel (11%). However, production decreases were experienced in the vehicle parts and accessories (–12%), household appliances (–9%), and structural metal products (–6%) segments. This is also on the back of the 2.9% year-on-year produc- tion growth recorded for the total manufacturing sector in January 2022. Between December 2021 and January 2022, total manufacturing production expanded by 1.9%. The metals and engineering sector, made up of 13 sub-sectors, constitutes 30.9% of the total manufacturing sector. It is encour- aging to note that at an aggregate level, production levels in the metals and engineering sector reached pre-Covid-19 levels by December 2021. “The positive production data recorded in January 2022 is very much in line with the other data points released in the last few days, namely the Purchasing Managers Index and the Business Confidence Index, which all showed notable improvement. This confirms the fact that, from the last quarter of 2021 into the first few months of 2022, global economic recovery was starting to take shape and generally supportive of domestic growth in various sec- tors. However, the geo-political developments involving Russia and Ukraine present downside risks for this recovery,” says Chibanguza. Risks include heightened uncertainty, volatility, and infla- tionary risks that will manifest through food and the commodi- ties complex, including oil prices. This will likely force the South African Reserve Bank to act much sooner and more aggressively than originally anticipated, hurting the prospects of the recovery. Domestically, the recent bouts of loadshedding will also dampen the outlook of the productive sectors. Chibanguza notes that while South Africa cannot do much about the global geo-political landscape and associated risks, resolving domestic challenges by implementing urgent reform in the electricity supply industry is entirely within the country’s control. SEIFSA will continue to press for the necessary reforms to safeguard productive capacity in order to stimulate much- needed growth.  I n br i ef Fast-track student block construction underway C oncor is hard at work on the latest student accommodation project in Braamfontein, Johannesburg – a much-needed contribution to the national shortage of these facilities. The fast-track venture is scheduled for completion in just 12 months and began in November 2021. The Groove, a substantial 13-storey development, will provide space for 899 stu- dents, and is conveniently located just op- posite the University of the Witwatersrand’s South Gate. Concor is working with developer Growthpoint Properties, who in turn is operating on behalf of Durban-based fund manager Vulindlela. In addition to the new build, the project is also repurposing some of the existing buildings on the site where the old Doves & Kloppers funeral parlour became a familiar landmark on the busy Enoch Sontonga Avenue. These existing buildings will provide additional services and utilities for student residents. Concor site agent MacDonald Ngobese notes that the successful completion of fast-track projects relies on having a highly skilled and experienced core team on site to closely manage sub-contractors and to keep strictly to the construction programme. This also requires constant and in-depth communication with all stakeholders, from the client to opera- tional partners and local authorities. “The scope of the work includes full fit-out, right through to joinery. Among the challenges is the very constricted work environment, as the site borders busy urban roads and the M1 highway,” he says. Two of Concor’s tower cranes have been erected on site to help deal with space constraints and to expedite the movement of materials in the interests of a fast pace of construction. While one crane is working 13 hours a day on pro- duction work, the second is speeding up the offloading and placement of material deliveries.  Artist’s impression of The Groove Production reached pre-Covid-19 levels by December 2021