PwC has released a report indicating good growth in South Africa’s construction industry, making it even more balanced to support infrastructure development in the country.
These results were based on financial results of the country’s top 10 construction companies on the Johannesburg stock exchange.
According to PwC’s partner Andries Rossouw, the country has been facing financial constraints in the last three years, but this has not been a hindrance as individual companies are committing more to public infrastructure.
The report indicates that institutions in the public construction sector recorded a capital expenditure increase of 11.7% since 2011. The same firms reported a total expenditure of US$18bn. New construction work increased to 3.5%, while plant, machinery and equipment purchases rose by 55%. There has also been an increase in salaries for individuals working in the construction sector.
The report comes a few months after South Africa government promised to roll out infrastructure projects faster, among them the US$847-bn infrastructure programme which had reported delays.
The report also reveals common risks such as health, safety, environment sustainability, law compliance, growth and expansion, with movement of foreign exchange affecting the construction sector by impacting on project timelines.
According to Rossouw, the construction industry in South Africa’s major challenges were skills development and equity in employment.
http://constructionreviewonline.com/2015/01/27/pwc-reports-growth-construction-industry-south-africa/
