With the global construction industry projected to grow by 3.8% in 2018, what does the local landscape look like?
All the answers to your unique business lifestage questions
With the momentum of years’ worth of political uncertainty and international investors holding back, Contracts Director for Bartlett Construction South Africa, Wayne Bartlett says that while the downturn has impacted greatly, medium-sized businesses remain lean but robust, to gain a competitive advantage.
“There will always be a need for construction, renovations and general infrastructure developments and upgrades,”
Related: 3 Expert insights on the construction sector that you really need to know
In the past we have seen price fixing, colluding and non-compliance in-line with the awarding of price-fixed tenders coming to light. We now ask the question of: “What will new President, Cyril Ramaphosa bring to the table and how will it affect the sector?”
Rejuvenation on the horizon
“The President has been promoting social and economic transformation in places such as Soweto to help contribute to some of the country’s growth target. By reinvigorating Soweto and promoting more business here, it may well be that more infrastructure and construction is needed in Soweto over the next few years,” says Bartlett.
“As South Africa gears up for positive improvements, job creation and infrastructure, as well as job creation linked to the development of infrastructure will become even more prominent,”
As a lean business, companies like Bartlett Construction say that new projects help to create between 50 – 200 jobs per project. Bartlett elaborates: “With enough momentum, we tend to have employment opportunities throughout the year and can also provide opportunities for small sub-contractors”.
Related: Join the construction sector revolution by investing in these new technologies
It’s no secret that the construction industry is driven by price. Clients look to reliable suppliers who provide quality finished products at the lowest price.
“We find that by keeping our overheads low, ensuring a motivated workforce and surrounding ourselves with a close network of reliable, small sub-contractors we are able to outprice and out-deliver in tough times,” Bartlett adds.