Throughout the sector leaders spoke about creating scalable and diversified companies throughout 2018, and we are now seeing the ripple effects of slow implementation echoed around the construction sector.
According to Wayne Bartlett, Contracts Director for Bartlett Construction, many businesses have faced the consequences of our current economic and political state.
“We have seen established and prominent construction companies closing their doors. Some which we believed would be around forever”.
Wayne says that its not all doom and gloom in the recession. “Despite the turmoil, the industry is projected to grow at 2.4% according to Fitch Solutions. This means that most of the acceleration should take place from mid-year onwards, when investor confidence grows”.
While the world watches on, the recovery period remains unknown. “Similar to the mining industry, the political climate plays a big part in our industry. For some companies, recovering the losses incurred could take several years”.
Looking at Africa and other industries
Interestingly, Wayne notes that Ethiopia is the continent’s current top performer in the construction sector at 12.3%, and this is where some of the international companies can look to regain their status.
And despite the manufacturing sector taking big knocks in the past, this industry along with agriculture were some of the main drivers of growth in the last quarter of 2018.
In addition, Bartlett Construction continues to nurture its growing property portfolio with the property sector poised for some growth and recovery in 2019 (SA Commercial Property News).
What does the future hold?
Wayne says that the upcoming elections are some of our most important yet. “We want a competitive industry and we want investment in the country. Many multinationals are waiting for elections which are essentially set to determine the future of our country”.
With a long-standing history of more than half a century in South Africa, Wayne believes that the industry can pick itself back up. “We remain resilient and ready to welcome more opportunities”.
“Our industry has been through the good and the bad, and we look forward to the future” he concludes.