Volatile global political and economic conditions are making it difficult for South African companies to predict what 2017 holds as far as profitability is concerned, says leading admixture supplier Chryso Southern Africa CEO and Chryso Group international VP Norman Seymore.
The Chryso Southern Africa Group includes major and long-established supplier of specialised construction products, a.b.e. Construction Chemicals.
Seymore says although the feedback regarding 2017 from Chryso’s local customer base is generally positive with many companies hoping for improved business conditions, Chryso believes there is still a strong need for caution.
“We are trading in unprecedented volatile and uncertain times where situations can change overnight. South Africa’s headlines can affect the strength of our currency and business confidence overnight.”
Fluctuation in exchange rates dampened progress for both Chryso and a.b.e. in the past year as both companies require high levels of imported raw materials as well as finished products in their manufacturing processes.
Chryso Southern Africa therefore had to offset the poor market conditions in 2016 by expanding its product range as well as investing in manufacturing facilities to reduce reliance on imports – and this trend will continue in 2017.
“I personally believe there will be some growth in sales but not to the levels we require. And, as stated before, the new municipal leaders will have to expedite long-overdue infrastructural projects in the new year if the building industry’s fortunes are not to slump further.”
On a brighter side, Chryso saw some improvement in fortunes in 2016 in the Western Cape and KwaZulu-Natal where demand for products were encouragingly higher than anticipated.
