South Africa: Building industry trending upwards

04 August 2014

Even despite elections, crippling strikes and uneasy foreign exchange rates the building industry in South Africa is on the mend and is showing signs of recovering beyond many analysts’ expectations. 

This is according to Nico Pienaar, director of the Aggregate and Sand Producers Association (Aspasa), whose members are key suppliers of building materials to the construction, roads, cement and readymix concrete industries. The latest building data, as well as an array of indicators across these industries seems to indicate that the market is verging on a major recovery.

“Even with a slew of negative events the total sum of building plans passed is showing healthy growth compared with last year’s figures, which in-turn means that actual building and construction should follow suit shortly. Although commercial property developments have slowed somewhat, residential building is climbing handsomely and the commercial sector should follow as soon as confidence is restored in the marketplace,” predicts Nico.

Sustainable growth
He continues that Aspasa members are also reporting improved volumes which reconfirms that more building material is being bought and consequently that more construction is taking place. With a host of large-scale retail complexes and malls planned or in progress, as well as post-election infrastructural projects waiting in the wings, the prospect for the rest of the year looks good.

Despite Increasing demand for building materials contractors should, however, be aware of the quality of materials that they purchase and ensure that materials are sourced from reputable suppliers, rather than fly-by-night operators who are looking at cashing-in on higher demands.

Considering that sand and aggregates has a direct bearing on the quality of structures, roads etc that are being built it is important that contractors make use of Aspasa accredited suppliers who practice sustainable quarrying practices and are trained to supply the right materials for the job at hand.

Supporting the economy
“While Aspasa welcomes the ongoing recovery of the industry it is important to ensure we put quality and sustainability first when it comes to undertaking new projects. We also encourage Government to unlock the vast infrastructural projects that have been on the cards for so long in order to support growth. Simultaneously, Government at all levels need to encourage their in-house procurement officials, engineers and consulting engineers to insist on using quality building materials from registered industry body associations, such as Aspasa.

“In this way we will not only ensure that the market recovers to its pre-recession state, but also that the recovery is based on sustainable practices that benefit local companies and creates employment for more people. By supporting our local quarries, cement manufacturers and other suppliers we can contribute to creating a buoyant local economy that will further fuel growth in the development of our country,” concludes Nico.

Issued on behalf of Aspasa, Nico Pienaar, Tel: (011) 791 3327, Fax: 086 647 8034, Email: [email protected], Web:

By Media Savvy Communications, Raymond Campling, Tel: (011) 979 7207, Cell: 076 297 2775, Email: [email protected], Web:

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